ECONOMY
Iraqi Prime Minister Mohammed Shia’ al-Sudani receives Kurdistan Region President Nechirvan Barzani in Baghdad on February 22, 2025. (Photo: Kurdistan Region Presidency)
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ERBIL, Kurdistan Region - Baghdad’s oil ministry on Saturday announced the “completion of procedures” to resume oil production and exports from the Kurdistan Region, a few hours after Iraqi Prime Minister Mohammed Shia’ al-Sudani called for accelerating the resumption of Kurdish oil production in a meeting with Kurdistan Region President Nechirvan Barzani.
Speaking to Barzani, Sudani “stressed the necessity of expediting the resumption of oil production by oil companies in the Kurdistan Region of Iraq and exports via the Ceyhan port in Turkiye,” according to a statement from his office.
The two met in Baghdad on Saturday, primarily discussing the “implementation of joint agreements” following the recent passage of an amendment to the Federal Budget Law, the statement said.
The amendment increases compensation to oil producers operating in the Kurdistan Region for their production and transportation costs and was a final sticking point to resuming Kurdish oil exports.
Sudani encouraged settling lingering disputes between Erbil and Baghdad under the light of the amended Federal Budget Law, stating that implementation of their joint agreements “serve national interest, strengthen Iraq’s economy, and meet the needs of its citizens.”
Barzani confirmed the Kurdistan Region’s commitment to ongoing communication and cooperation with the federal government, emphasizing the importance of high-level coordination in service and economic sectors to drive development, enhance service delivery, and strengthen stability, the statement from the prime minister’s office said.
Later the same day, the Iraqi oil ministry said everything was ready to resume Kurdish oil exports.
“The Federal Ministry of Oil confirms the completion of procedures to resume the export of oil produced in the Kurdistan Region through Ceyhan port, in accordance with the mechanisms outlined in the budget law and its amendment, and within the production ceiling set for Iraq by OPEC [Organization of the Petroleum Exporting Countries],” read a statement from the ministry.
The ministry urged authorities in the Kurdistan Region “to deliver the quantities produced from the operating fields to the State Oil Marketing Organization (SOMO) to begin exporting via the Iraqi-Turkish pipeline and Ceyhan port, in accordance with the contracts signed with the nominated companies,” the statement added.
Oil exports from the Kurdistan Region via the Iraq-Turkey pipeline were suspended in March 2023 following a ruling by a Paris-based arbitration court, which sided with Baghdad. The court determined that Ankara violated a 1973 pipeline agreement by permitting Erbil to export oil independently starting in 2014.
Before the suspension, Erbil was exporting approximately 400,000 barrels of oil per day via the Iraq-Turkey pipeline, in addition to around 75,000 barrels of oil from Kirkuk.
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