Update on Kurdistan Oil Exports: Ongoing Discussions and Challenges Ahead
The Kurdistan Oil Industry Association (APCO) has indicated that the Kurdistan Region has yet to resume its oil exports due to the absence of an official agreement with the Iraqi government.
Upcoming Trilateral Meeting
On March 4, 2025, Epicins spokesperson Miles Caggins announced that a trilateral meeting involving the Iraqi government, the Kurdistan Regional Government (KRG), and oil companies in Baghdad may occur later this week. Caggins expressed optimism regarding the meeting, emphasizing, "We welcome any gathering that fosters dialogue among the pertinent parties and leads to an agreement on contracts and oil exports.”
Conditions for Resuming Exports
Caggins noted that the conditions surrounding oil exports remain unchanged, with companies advocating for a new oil export agreement referred to simply as "the Agreement." He stated, “This is a straightforward agreement that delineates the timing and volume of oil shipments, stressing that the oil sourced from the fields must meet quality standards.”
Financial Implications of the Export Agreement
The recent modification to the budget law stipulates that the Iraqi government will compensate the Kurdistan Regional Government at $16 per barrel of oil sold, subsequently passing the payments on to the respective oil companies. Companies are now seeking formal guarantees that their financial entitlements will be honored and are urging the establishment of a mechanism to address outstanding debts, which fall under the purview of the KRG.
Status of Oil Exports
Despite an invitation from the Iraqi Oil Ministry for a KRG delegation to convene in Baghdad on Tuesday, the anticipated meeting did not take place. The Iraqi Oil Ministry had previously indicated plans to initiate oil exports soon, but the KRG’s oil export activities have been effectively halted since March 25, 2025.
As discussions continue, the future of oil exports from the Kurdistan Region remains contingent on reaching a mutually agreeable framework with the Iraqi government that addresses the concerns of all stakeholders involved.
