Iraqi Oil Export Resumption Announcement
Overview of Oil Export Resumption from Kurdistan Region
On February 29, 2025, Minister of Oil Hayyan Abdel-Ghani announced that oil exports from the Kurdistan region will recommence within the next 24 hours. This development involves the Iraqi Oil Marketing Company (SOMO) and will utilize the Turkish port of Ceyhan for the transportation of crude oil.
Initial Export Volumes and Future Plans
The initial export volume is set at 185,000 barrels per day, with intentions to incrementally increase this quantity moving forward. This restart marks a significant change after a nearly two-year suspension of exports, during which Türkiye halted oil pumping from Iraq in March 2023. This interruption followed a ruling from the International Chamber of Commerce, which mandated Ankara to compensate Baghdad with $1.5 billion due to unauthorized exports conducted between 2014 and 2018.
Challenges from International Oil Companies
Despite the announcement regarding export resumption, reports indicate that eight international oil companies currently active in the Kurdistan region have expressed apprehension about resuming shipments through the port of Ceyhan at this time. These companies have noted the absence of official arrangements or guarantees to ensure payment for both prior and ongoing commercial agreements.
Regulatory Framework and Budget Considerations
The Iraqi Parliament previously approved an amendment to the budget law, establishing the extraction and transportation cost per barrel of oil from Kurdistan at $16 for an interim period of 60 days. Furthermore, it has been determined that an international advisor will establish the final cost for each oil field on an individual basis.
Ongoing Government Negotiations
Discussions between the federal government and the Kurdistan region are ongoing, aiming to resolve outstanding issues that affect oil supply stability and enhance national revenue. These negotiations are crucial for supporting the broader Iraqi economy.
Export Data Summary
| Details | Information |
|---|---|
| Minister of Oil | Hayyan Abdel-Ghani |
| Export Resumption Date | February 29, 2025 |
| Initial Daily Export Volume | 185,000 barrels |
| Interruption Duration | Nearly two years |
| Compensation to Baghdad | $1.5 billion |
| Cost per Barrel | $16 for 60 days |
This information reinforces the significance of the Kurdistan region in Iraq’s oil economy and highlights the complexities surrounding international oil agreements and regional governance.
