Kurdish oil exports are expected to restart within 48 hours after more than two years of suspension. Amer Khalil, CEO of the North Oil Company, confirmed the development and said 95 percent of the agreement has been finalized.
The North Oil Company operates under the federal Oil Ministry. Khalil emphasized that the federal government, international companies, and the Kurdistan Region are aligned to move forward.
Earlier, Kurdistan Region Prime Minister Masrour Barzani announced that Baghdad had reached an understanding with oil companies. He described this as a positive step toward solving challenges that delayed exports.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were halted in March 2023. A Paris-based court ruled that Turkey had violated a 1973 pipeline deal by allowing independent exports from Erbil starting in 2014.
Since then, Baghdad and Erbil have engaged in long negotiations over revenue sharing. Under the new plan, the Kurdistan Regional Government (KRG) will deliver oil to SOMO while keeping part for domestic needs.
The budget law now entitles oil producers to $16 per barrel for production and transport. However, it does not cover old debts owed to producers.
According to reports, the KRG will provide 230,000 barrels per day to SOMO and reserve 50,000 barrels for local use. An independent trader will handle exports from Ceyhan port in Turkey.
Before the halt, Erbil exported around 400,000 barrels daily, plus 75,000 barrels of Kirkuk’s oil. The restart marks a major step for Iraq’s energy sector and the Kurdistan Region’s economy.