Peregraf
The Acting Minister of Natural Resources of the Kurdistan Regional Government (KRG) has confirmed that there are no remaining obstacles to the resumption of oil exports from the region, pending final discussions with Turkey.
“Oil exports will not necessarily resume in March but may happen earlier,” the minister told reporters. “All legal procedures have been completed, and there are no issues except for the Turkish side’s position. A delegation from the Federal Oil Ministry will arrive in Erbil tonight, and meetings will begin on Tuesday.”
Oil exports from the Kurdistan Region have been suspended since March 2023, when Turkey halted the flow of crude through the Ceyhan pipeline following an international arbitration ruling in Iraq’s favor. However, a recent budget amendment passed by the Iraqi parliament on February 2, 2025, and signed by the Iraqi president yesterday, has paved the way for renewed exports.
The amendment, submitted by the Iraqi government, sets the cost of production and transportation of Kurdistan’s oil at $16 per barrel, a figure that will be covered by the Iraqi Ministry of Finance. Kurdish MP Dilan Ghafoor told Peregraf that this rate is a temporary measure, as an independent company will conduct an assessment within 60 days to determine the actual costs.
The KRG and oil companies operating in the Kurdistan region have welcomed the amendment, seeing it as a key step toward restarting exports. Observers stress that resolving financial and logistical challenges swiftly is crucial, as both Baghdad and Erbil depend heavily on oil revenues. The Kurdistan Region has been experiencing a severe financial crisis due to the halt in oil sales, impacting salary payments and public services.
The international market is closely monitoring these developments, as Iraq—one of OPEC’s largest oil producers—seeks to restore full export capacity amid fluctuating global oil prices.