Peregraf
Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani and Geoffrey R. Pyatt, the U.S. Assistant Secretary of State for Energy Affairs, held a phone conversation to address the resumption of oil exports from the Kurdistan Region and broader energy cooperation.
Following the call, Barzani emphasized the urgency of resolving the obstacles that have halted oil exports since March 2023. “During the call, we stressed the urgency of resolving outstanding issues and removing barriers to oil exports, highlighting the suspension's detrimental impact on Iraq’s budget and economic stability,” he stated.
The KRG Prime Minister reiterated the need to uphold the financial rights of the Kurdistan Region as outlined in Iraq’s constitution. He also highlighted the region’s critical role in advancing Iraq’s energy independence, economic growth, and regional stability.
On September 23, 2024, Iraqi Prime Minister Mohammed Shia al-Sudani met with US Secretary of State Antony Blinken in New York, where the re-export of oil from the Kurdistan Region to international markets remains a key topic of discussion.
Dilan Ghafoor, head of the Foreign Relations Committee in the Iraqi Parliament, told Peregraf that the US government is strongly advocating for the restoration of oil exports, viewing them as essential to regional stability and economic development.
Oil exports from the Kurdistan Region have been suspended since a ruling by the International Court of Arbitration in Paris in March 2023. The court sided with Iraq in a dispute with Turkey, leading to an estimated $23 billion in losses for both Iraq and the Kurdistan Region.
The ongoing disagreement between Baghdad and Erbil also centers on financial terms with international oil companies (IOCs) operating in the region. Baghdad seeks to renegotiate payment terms and replace the KRG’s production-sharing contracts with service contracts, but these changes face resistance from IOCs.
Efforts to amend Iraq’s budget law are seen as a crucial step toward resolving these issues. The next few weeks will be critical in determining whether legislative and diplomatic initiatives can restore stability to Iraq’s oil sector and revive trust among industry stakeholders.
This call underscores the pressing need for collaboration between all parties to mitigate the economic impact of the prolonged suspension and secure a sustainable resolution.