Kurdistan Oil Re-export Set to Resume Following Agreement Between Baghdad and Erbil
The Parliamentary Oil and Gas Committee has announced that the re-export of oil from the Kurdistan Region is poised to resume in the coming days, following the culmination of negotiations between Baghdad and Erbil.
Committee member Ngimish has indicated that all necessary technical and legal procedures are now complete, paving the way for this development. "There are currently no obstacles—technical or political—impeding the re-export of oil through the Turkish port of Jihan," Ngimish stated. He noted that the operational framework aligns with the agreements made by the respective governments, and only final technical steps with the Turkish side remain.
However, economic expert Nabil Al-Marsoumi has raised concerns regarding the re-export process, highlighting significant complexities that could affect the execution. In a recent analysis, Al-Marsoumi emphasized the necessity of securing a written agreement with the foreign companies operating in the region, stating, "It is very difficult to proceed with re-exportation without this foundational agreement." He elaborated that the agreements must define a clear mechanism to cover production, transportation, marketing costs, and the outstanding expenses incurred by foreign companies that have yet to be recouped.
Furthermore, Al-Marsoumi pointed to unresolved issues surrounding the profit-sharing percentages stipulated in existing participation contracts with these firms.
Earlier, on February 23, 2025, the Kurdistan Regional Government confirmed a deal with the Federal Ministry of Oil, allowing for the resumption of oil exports based on available quantities. This agreement was reached amid ongoing discussions to enhance cooperation and resolve outstanding disputes between Baghdad and Erbil related to the oil and energy sector.
In a related announcement, a joint technical team has been established to assess the export infrastructure and ensure it is ready to recommence operations. The Kurdistan Regional Government reiterated its commitment to the Federal Public Budget Law, emphasizing that this collaboration aims to ensure stable oil revenue flows.
Previously, the region’s oil exports were halted due to technical and administrative challenges. The recent agreement marks a significant step in ongoing efforts to address the complexities within the oil and energy relationship between Baghdad and Erbil.
