Peregraf
The Iraqi Oil Minister said that the Kurdistan Region will soon resume oil exports through the Turkish Ceyhan Port, adding that "there is a possibility of increasing oil from Basra oil through this pipeline."
Oil Minister Hayyan Abdul Ghani made the remarks at a meeting of the Iraqi-Turkish joint committee attended by members of the Iraqi ministries, the ministry said in a statement.
On the other hand, today a trilateral meeting will be held in Baghdad for the second time this week between the Iraqi Federal Oil Ministry, the Kurdistan Regional Government's (KRG) Ministry of Natural Resources, and the international oil production companies in the Kurdistan Region to discuss oil exports, a source in the KRG told Peregraf.
"The main purpose of the meeting is to remove obstacles to the export of Kurdistan region oil, and the three sides want to reach a final agreement today to export the oil as soon as possible."
On March 2, 2025, a crucial meeting between the Kurdistan Regional Government (KRG), the Iraqi federal government, and international oil companies aimed at resolving the stalled oil exports from the Kurdistan Region ended without an agreement.
A senior source told Peregraf that representatives from the KRG Ministry of Natural Resources, the Iraqi Oil Ministry, and international oil companies operating in the Kurdistan Region convened in Baghdad for discussing the resumption of Kurdistan oil exports to Turkey. However, the meeting failed to produce a resolution.
According to the source, the primary obstacle remains the financial entitlements of oil companies. These companies are demanding the settlement of their outstanding debts, which amount to $1 billion, along with guarantees for future payments. However, Baghdad has refused to cover these debts, preventing a breakthrough in negotiations.
On February 28, 2025, Iraqi Oil Minister Hayan Abdul Ghani stated that an announcement regarding the resumption of oil exports from the Kurdistan Region via SOMO to Turkey was imminent. However, no such announcement has been made to date.
Abdul Ghani previously indicated that oil exports from the Kurdistan Region would start at 185,000 barrels per day and gradually increase to meet the quotas specified in the Iraqi budget. The Kurdistan Region currently produces 300,000 barrels of oil daily, with the remainder being allocated for local use.
On February 26, 2025, Iraq’s Prime Minister Mohammed Shia’ al-Sudani stated plans to open a new chapter with oil companies operating in the Kurdistan Region, aiming to ensure financial stability and fair distribution of revenues. Speaking via video message to the Erbil Forum on Wednesday, Al-Sudani emphasized the government’s commitment to resolving longstanding disputes over oil exports and salaries.
Under the Iraqi budget law, the Kurdistan Region is required to deliver 400,000 barrels of oil per day to SOMO for export. The Iraqi parliament approved amendments to the budget law on February 2, 2025, stipulating that a special committee will assess the cost of oil production in the Kurdistan Region. Until an international company determines the production costs, Baghdad has agreed to pay the Kurdistan Region $16 per barrel of oil.
Oil exports from the Kurdistan Region and Kirkuk through Turkey's Ceyhan port have been halted since March 25, 2023. The suspension followed a ruling by the Paris Arbitration Court in favor of a complaint filed by the Iraqi Oil Ministry against Turkey, leading to a disruption in the region’s oil exports to international markets.
With negotiations still deadlocked and financial disputes unresolved, the fate of oil exports from the Kurdistan Region remains uncertain.