Kurdistan Oil & Gas Development

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Kurdistan oil exports resume next month

The Kurdistan Government’s (KRG) acting minister of natural resources announced on Monday that oil exports from the Kurdistan Region will resume next month, confirming that there are no technical obstacles to the resumption

The Iraqi parliament passed a budget amendment in early February that increased the production and transport rates for international oil companies (IOCs) operating in the Kurdistan Region. The rate was set at $16 per barrel, a substantial increase from the $6.90 set in the 2023 federal budget.

The Iraqi President Abdul Latif Rashid on Sunday signed the budget amendment into law, paving the way for its publication in the Official Iraqi Gazette, making it effective.

The KRG’s acting Minister of Natural Resources Kamal Mohammed stated that with Rashid’s signature, “there are no technical issues hindering the export of oil from the Kurdistan Region."

Mohammed also highlighted the economic toll of the suspension of oil exports from the Kurdistan Region, stating that Erbil and Baghdad have lost nearly $1 billion each month for the past 23 months.

Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were suspended in March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin independent oil exports in 2014.

Before the halt, Erbil exported approximately 400,000 barrels of oil per day through the Iraq-Turkey pipeline, in addition to about 75,000 barrels of Kirkuk oil.

The KRG minister stated that “Iraq has concluded that it has inflicted great damage upon itself and the Kurdistan Region,” and “so the budget amendment was approved.” He explained that, although “legal procedures have been completed,” Ankara’s consent is now needed, as “the oil will be transferred via Turkey,” he said.

The suspension of Kurdish oil exports caused significant economic difficulties in the Kurdistan Region, leading to delays in the payment of civil servant salaries. The unpaid salaries crisis has sparked ongoing protests from public employees.

https://www.rudaw.net/english/kurdistan/170220252

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Erbil, Baghdad Discuss Resume Of Oil Exports

The Iraqi federal government has sent a high-level delegation to the Kurdistan Region to finalize a mechanism for resuming oil exports through the Turkish port of Ceyhan, Iraq’s Oil Minister Hayyan Abdulghani confirmed

The delegation, led by senior officials from the Ministry of Oil, met with Kurdistan Regional Government (KRG) representatives in Erbil on Monday. Discussions centered on the re-export of oil under a framework aligned with recent amendments to Iraq’s federal budget law.

Abdulghani noted that he had reached an agreement with KRG Minister of Natural Resources Kamal Mohammed to continue talks on Kurdistan’s oil exports.

Meanwhile, Omid Sabah, head of the Kurdistan Region’s Council of Ministers, said the issue would be addressed in a special meeting of the KRG Cabinet.

The discussions follow the Iraqi parliament’s approval of budget amendments on February 2, particularly Article 12, which establishes guidelines for Kurdistan’s oil exports. Under the new framework, the federal government will cover the KRG’s production and transportation costs for oil transferred to the state-run Oil marketing company (SOMO). The law also mandates the appointment of an international advisory body to evaluate these costs within 60 days.

Oil exports from Kurdistan have been suspended since March 2023, when the International Chamber of Commerce (ICC) ruled that Turkey’s facilitation of Kurdistan’s independent oil sales violated a 1973 pipeline agreement with Iraq. The latest negotiations aim to resolve the long-standing dispute and restore the Region’s vital oil revenues.

https://www.basnews.com/en/babat/875685

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Two points holding up oil exports

Kurdistan Government (KRG) said on Saturday that before oil exports can resume, two points still need to be resolved, including one that requires approval from the Iraqi prime minister, after the federal oil ministry had said everything was ready to restart selling Kurdish oil through the pipeline to Turkey

First, the prime minister must approve quantities of oil needed for local consumption, the KRG’s team negotiating the matter with Baghdad said in a statement.

Implementing the amended budget law “requires, before resuming exports, an agreement on the quantities allocated for local consumption based on the actual needs of the region and its obligations, similar to the rest of Iraq. The federal side clarified that this matter requires the approval of the prime minister of the federal government,” read the statement.

The federal budget law was amended earlier in February, raising compensation paid to oil producers for production and transportation costs in order resolve an obstacle to restarting Kurdish oil exports that were halted nearly two years ago following an arbitration court ruling.

Baghdad’s oil ministry on Saturday announced the “completion of procedures” necessary to resume production and exports, and 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 announcement came 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.

The second matter still to be resolved, according to the KRG statement, is establishing a mechanism for making payments to producers.

“The resumption of exports also necessitates agreeing on a clear and specific mechanism for paying the dues of production and transportation companies to the KRG, as stipulated in the law and detailed in the minutes of our meeting with the federal Ministry of Oil delegation,” it said, noting that this falls under the jurisdiction of the federal finance ministry.

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.

https://www.rudaw.net/english/kurdistan/220220251

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Iraq to resume oil exports from Kurdistan

ERBIL (Kurdistan24) – A major milestone for Iraq’s oil industry was announced by Bassem Mohammed, Deputy for Extraction Affairs at the Iraqi Oil Ministry, on Sunday. In the first phase of resuming oil exports, Iraq is set to receive 185,000 barrels of oil per day from the Kurdistan Region, following its export to Turkey’s Ceyhan port. This amount will increase over time, with plans to reach 400,000 barrels per day

Mohammed explained that while the suspension of Kurdistan Region oil exports in the past had caused setbacks for the oil fields, efforts are now underway to restore production levels. "It will take time to reach previous levels," he stated, referring to the impacts of the hiatus on production.

Currently, the Kurdistan Region has the capacity to produce 300,000 barrels of oil per day, with 185,000 of those barrels designated for export and the remainder allocated for domestic use.

Mohammed also highlighted positive developments in Erbil-Baghdad relations, noting a recent visit by a delegation from the Kurdistan Regional Government (KRG) to discuss the formation of a joint committee aimed at monitoring the oil export process. He added that the KRG had shown strong readiness to resume oil exports.

To ensure the safe and efficient resumption of exports, technical teams from the North Oil Company and KRG representatives have been inspecting the pipelines leading to the Ceyhan port. The goal is to ensure the pipelines are in suitable condition and assess the pressure levels on the network.

Additionally, Mohammed revealed that discussions have been held with Turkish officials to confirm the readiness of the pipelines for exports. "We are awaiting a response within the next 24 hours," he said.

This announcement marks a positive step forward in strengthening Iraq’s energy sector and solidifying strategic ties with both the Kurdistan Region and Turkey. The Iraqi Oil Ministry remains committed to resuming oil exports through Ceyhan, as part of a broader vision for enhancing bilateral relations. The ministry continues to engage with both parties to ensure smooth operations and a sustainable export process

https://www.kurdistan24.net/en/story/82 ... eyhan-port

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Kurdistan’s Oil Exports
Key to Economic Recovery

In an exclusive interview with BasNews, Dr. Govand Sherwani, an energy expert, discusses the significance of resuming Kurdistan Region’s oil exports, the economic impact on Iraq and Kurdistan, and the role of Prime Minister Masrour Barzani in resolving the issue

Sherwani, discusses the significance of resuming Kurdistan Region’s oil exports and their impact on both the Kurdistan Region and Iraq’s economy. He highlights the economic losses caused by the 23-month suspension, the benefits of renewed exports for Iraq’s budget, and the challenges that have delayed the process. Dr. Sherwani also praises the diplomatic efforts of Kurdistan Region Prime Minister Masrour Barzani in advocating for a resolution and securing international support for the issue:

[Below is the interview which was translated from Kurdish and edited for clarity and length.].

BasNews: What does it mean to export Kurdistan’s oil? The brand is called ‘Kurdistan Oil.’ How important is this?

Dr. Govand Sherwani: In 2014, after the Kurdistan Region’s budget share was cut, it was forced to start exporting oil independently. For more than a month now, international media—especially those covering the economy and oil industry—have been discussing the return of Kurdistan Region’s oil, particularly the 400,000 barrels per day. The global oil market will benefit from this decline, and having oil branded under the Kurdistan Region’s name is crucial for both its economic and political standing.


BasNews: How will the resumption of oil exports impact Kurdistan’s share in Iraq’s budget? Will it strengthen the Kurdistan Region’s economy?

Dr. Govand Sherwani: The suspension of oil exports in March 2023, lasting 23 months, caused a significant economic loss to Iraq, estimated at around $20 billion. Over the past two years, Iraq’s budget has struggled, and the Kurdistan Region has been unable to export nearly half of its allocated share. If Kurdistan resumes oil exports, meets its obligations, and hands over the oil to SOMO, Iraq will be required to send the Kurdistan Region its full budget share of 16 trillion dinars. This will mark a positive turning point for the Kurdistan Region’s economy, helping it recover from the financial difficulties caused by the halt in exports.

BasNews: What challenges did the Kurdistan Region face after oil exports were suspended?

Dr. Govand Sherwani: The suspension has caused serious harm to all involved— the Iraqi government, the Kurdistan Region, foreign companies and investors, Turkish firms working on oil pipelines, and even international markets. Political interference has also played a role. The oil-related issues should have been fully resolved within two years, particularly those concerning production and transportation costs.

The agreement between Baghdad and Erbil was supposed to be implemented in April 2023, but negligence on the part of the Iraqi Oil Ministry led to delays, affecting all stakeholders.

BasNews: How does Iraq benefit from the resumption of Kurdistan’s oil exports?

Dr. Govand SherwaniIraq stands to gain significantly. The export of Kurdistan’s oil will add approximately 300,000 barrels per day to Iraq’s revenue, which could have helped reduce the country’s budget deficit. Furthermore, if the restrictions imposed by OPEC and OPEC Plus on Iraq’s oil exports are lifted, the Kurdistan Region’s pipeline has the capacity to transport nearly one million barrels per day to global markets, further boosting Iraq’s economy.

BasNews: What role has Kurdistan Region Prime Minister Masrour Barzani played in resuming oil exports?

Dr. Govand Sherwani: The Kurdistan Regional Government (KRG), under Prime Minister Masrour Barzani’s leadership, has actively worked to resolve the oil export issue. Through participation in international forums and diplomatic engagements across Europe and other regions, Barzani has consistently highlighted the challenges facing Kurdistan’s oil exports.

During several of his international visits and economic meetings, he raised the issue, garnering support from international partners. This diplomatic effort contributed to the Biden administration addressing the need for legal amendments in Iraq to facilitate the resumption of Kurdistan’s oil exports.

Additionally, the KRG’s official delegations have engaged in continuous discussions with Baghdad, as well as with international leaders and ambassadors. The unresolved nature of this issue has led many global actors to support a constitutional resolution between Erbil and Baghdad, recognizing the importance of Kurdistan’s stability for Iraq’s overall security and economic well-being.

https://www.basnews.com/en/babat/876290

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Agreement to resume oil exports reached

ERBIL (Kurdistan24) – Iraqi Oil Minister Hayyan Abdul Ghani announced on Wednesday that the Iraqi government and the Kurdistan Regional Government (KRG) have reached an agreement to resume oil exports through Turkey’s Ceyhan port

Following a series of productive meetings between Iraq’s Ministry of Oil and the KRG’s Ministry of Natural Resources, both sides have come to an important understanding that paves the way for renewed exports.

This development marks a significant step forward for Iraq’s economy, strengthening its oil industry and reinforcing ties between Baghdad and Erbil. Also, on Monday Ghani confirmed that oil exports from the Kurdistan Region are expected to resume within the next two days, signaling positive momentum for the country’s energy future.

https://www.kurdistan24.net/en/story/82 ... l-minister

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Kurdistan Oil Exports Resume Within Hours

Iraq will officially resume oil exports from the Kurdistan Region through the State Oil Marketing Organization (SOMO) via Turkey’s Ceyhan Port in the coming hours, Iraqi Oil Minister Hayan Abdul Ghani confirmed

Ghani stated that initial exports will begin at 185,000 barrels per day and will gradually increase in accordance with federal budget allocations. The agreement to restart the Ceyhan pipeline follows extensive discussions between the Iraqi Oil Ministry and the Kurdistan Regional Government (KRG), ensuring joint operations for crude exports.

Speaking to Iraq’s Al-Ikhbariya channel, Ghani emphasized the importance of collaboration, noting that technical meetings with the KRG Ministry of Natural Resources had led to "important agreements" on resuming exports.

Deputy Oil Minister Basim Mohammed Khudair explained that Iraq will initially receive 185,000 barrels per day from the Kurdistan Region, with a long-term target of 400,000 barrels per day. He noted that the prolonged halt in exports had caused technical disruptions in Kurdistan’s oil fields, requiring time to restore full production capacity.

Khudair added that of the 300,000 barrels per day currently available for export, 185,000 barrels will be designated for international markets while the remainder will be allocated for domestic use.

A delegation from Iraq’s Oil Ministry recently visited the Kurdistan Region, where both sides agreed to form joint technical committees to oversee the export resumption process.

Khudair also stated that Iraq has contacted Turkey to confirm the operational status of the Ceyhan pipeline and is awaiting a response within 24 hours. He underscored that Iraq remains committed to sustained exports through Ceyhan, considering it a critical element in strategic relations with Turkey.

The KRG Ministry of Natural Resources confirmed the agreement in a statement on Sunday, affirming its commitment to implementing federal budget provisions and ensuring pipeline readiness through joint technical teams.

Meanwhile, the Association of the Petroleum Industry of Kurdistan (APIKUR) announced on February 23 that it is fully prepared to restart exports via the Iraq-Turkey pipeline, marking the end of a nearly two-year suspension.

https://www.basnews.com/en/babat/876601

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Trilateral oil export talks continue

ERBIL (Kurdistan24) – Kurdistan24 reporter Dilan Barzan has reported that discussions between the Iraqi Ministry of Oil, the Kurdistan Regional Government (KRG) Ministry of Natural Resources, and the Association of the Petroleum Industry of Kurdistan (APIKUR) are ongoing, with another round of meetings expected next week

While the latest trilateral talks concluded without a final resolution, the continuation of negotiations signals a commitment from all sides to addressing key issues. According to Barzan, one of the main points of discussion remains the role of an international consulting company in determining oil extraction and export pricing.

The Iraqi Oil Ministry has justified its decision to export Basra oil through Turkey’s Ceyhan port, citing security threats to Basra’s oil fields and the need to balance exports between national and regional consumption. Meanwhile, oil companies in the Kurdistan Region are actively engaging in discussions, requesting either participation in contracts or compensation for extraction costs.

Despite ongoing challenges, the commitment to further dialogue and the upcoming round of negotiations indicates that progress toward a resolution remains possible.

https://www.kurdistan24.net/en/story/82 ... -agreement

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APIKUR ready to resume oil exports

ERBIL (Kurdistan24) – The Association of the Petroleum Industry of Kurdistan (APIKUR) has confirmed that its member companies are prepared to resume oil exports through the Iraq-Turkey Pipeline as soon as fair and transparent agreements are reached with Iraqi and Kurdish authorities

During a meeting on Thursday, APIKUR representatives engaged with officials from the Government of Iraq and the Kurdistan Regional Government (KRG) to discuss the conditions necessary for restarting exports, which have been halted since last year. Further discussions are required to finalize agreements.

APIKUR has reiterated its key conditions for resuming exports, emphasizing the need for equitable treatment of oil producers in the Kurdistan Region compared to those in Iraq. The association is calling for clear payment guarantees, transparent implementation of Iraq’s budget law, and resolution of outstanding payments for oil exported between October 2022 and March 2023.

Key conditions outlined by APIKUR include:

Payment Surety: Formal sales agreements must be in place to ensure companies are fully compensated for past and future oil exports. Payments should be made directly and transparently to companies without intermediaries.

Respect for Existing Contracts: The terms of Production Sharing Contracts (PSCs) must remain intact. An independent technical consultant should oversee invoice verification in accordance with PSC terms, with a formal dispute resolution process in place.

APIKUR member companies have already recommended internationally recognized consultants to KRG officials to facilitate the verification process

While progress has been made, additional meetings are necessary to finalize the terms. APIKUR companies remain committed to resuming exports as soon as agreements are in place, ensuring a stable and transparent oil market for the region.

https://www.kurdistan24.net/en/story/82 ... il-exports