The Kurdistan Regional Government (KRG) has handed over eight million barrels of oil to Iraq’s State Oil Marketing Organization (SOMO) since exports resumed in late September. Acting Minister of Natural Resources Kamal Mohammed said that the transfer is proceeding smoothly.
Oil exports from the Kurdistan Region had been suspended for nearly two and a half years. The pause followed a March 2023 ruling by a Paris-based arbitration court, which found Turkey violated a 1973 pipeline agreement by allowing Erbil to export oil independently since 2014.
The resumption comes under a three-month deal between Baghdad, the KRG, and international oil companies. Under this agreement, Kurdish oil is delivered to SOMO, with part of the production reserved for domestic consumption. Mohammed confirmed that Erbil transfers an average of 200,000 barrels daily.
Hamdi Singary, deputy director of SOMO, noted that the current deal will expire on December 31. Officials said discussions are ongoing about the next steps once the agreement ends.
The resumption has boosted Iraq’s total oil exports. SOMO reported that the country exported over 110 million barrels in October, up from 102 million barrels in September. More than five million barrels came from the Kurdistan Region and Kirkuk alone, reflecting a notable increase in Kurdish contributions to the national output.
The delivery of Kurdish oil to SOMO ensures Iraq benefits from the region’s production while maintaining internal allocations. Analysts say the deal stabilizes the export process and reassures international buyers of reliable supply.
With the three-month agreement in place, the Kurdistan Region has reestablished a vital economic link with Baghdad. Officials emphasize that the process remains uninterrupted, allowing both regions to meet domestic and international commitments.