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The Iraqi Oil Ministry is calling for an urgent meeting to discuss the long-awaited and delayed resumption of oil exports from the semi-autonomous region of Kurdistan, state media reported on Friday.
In February, Iraq and Kurdistan appeared to be close to agreeing on all technical and financial details about resuming exports in March.
Oil exports from Kurdistan have now been halted for more than two years after they have been shut in since March 2023 due to a dispute over who should authorize the Kurdish exports.
After more than a year of futile negotiations and disputes over non-payment to foreign oil firms operating in Kurdistan, Iraq cleared a major hurdle in February to the resumption of Kurdistan’s oil exports. Iraq’s parliament voted on a key plan for the compensation of oil companies operating in Kurdistan that would speed up the restart of crude oil exports from the semi-autonomous region.
Iraq’s parliament approved amendments in the federal budget law, under which international oil companies operating in Kurdistan will get a fixed price of $16 per barrel for the oil they produce, to be paid in advance. The oil will be delivered to and sold through the State Oil Marketing Company (SOMO).
However, talks have stalled in recent weeks, and exports haven’t been restored yet.
Foreign oil producers in Kurdistan want firm agreements and assurances about past and future payments before resuming exports, while Baghdad is being pressured by the U.S. to allow Kurdish supply on the market, as the Trump Administration is looking to force a significant reduction of Iranian oil exports under the “maximum pressure” campaign.
Meanwhile, the Association of the Petroleum Industry of Kurdistan (APIKUR), which groups foreign oil companies operating in Kurdistan, said, “We are ready to resume exports upon reaching agreements with the Government of Iraq and Kurdistan Regional Government. Protecting our rights and investments is essential.”
