Kurdistan Region oil exports are set to resume within the next 48 hours, according to Peshawa Hawramani, the Kurdistan Regional Government (KRG) spokesperson. He told reporters that a tripartite agreement with the federal government and international oil companies had cleared major obstacles. Only one or two companies had minor reservations, which did not hinder the restart of exports.
Hawramani added that the KRG has already sent a formal letter to Iraq’s State Oil Marketing Organization (SOMO) to take delivery of the oil. “Everything is ready. Only technical steps remain. Based on our agreements, we expect this issue to be resolved within 48 hours,” he said. The Kurdistan Region currently has an oil export capacity of 234,000 barrels per day.
The KRG’s Ministry of Natural Resources confirmed that it has fulfilled all obligations under the decisions of the Kurdistan Council of Ministers. All domestic and foreign companies, except for one, have signed approvals. The ministry emphasized that the remaining company’s delay does not affect the overall tripartite agreement.
Oil exports from Kurdistan via the Iraq-Turkey pipeline have been suspended since March 2023, after a Paris arbitration ruled in Baghdad’s favor regarding Erbil’s independent exports. The federal government and KRG had long disputed revenue and export rights. The recent agreement allows the KRG to deliver oil to SOMO while keeping a portion for domestic use.
An amendment to Iraq’s budget law temporarily set $16 per barrel for production and transportation costs. Before the suspension, Erbil exported about 400,000 barrels daily, plus 75,000 barrels from Kirkuk.