Peregraf
Eight international oil companies operating in the Kurdistan Region of Iraq have reached agreements in principle with both the federal government in Baghdad and the Kurdistan Regional Government (KRG) to resume oil exports, an industry group announced Wednesday.
The Association of the Petroleum Industry of Kurdistan (APIKUR), which represents the companies, said the deal—once signed and implemented—would allow around 230,000 barrels of crude per day to flow again through the Iraq–Türkiye pipeline. Exports have been suspended since March 2023 after an international arbitration ruling halted shipments.
“This framework, once signed and implemented, should allow exports to restart in the coming days, while providing a path toward longer-term arrangements,” APIKUR said in a statement.
The framework, according to APIKUR, preserves the sanctity of existing contracts and ensures payment guarantees to international operators. The KRG has built up nearly $1 billion in arrears to producers, with DNO alone owed about $300 million. Under the agreement, the KRG and oil companies also pledged to meet within 30 days of resuming exports to establish a mechanism for settling outstanding debts.
APIKUR said eight companies covering over 90% of Kurdistan’s oil production have accepted the framework, though two of its members—Norway’s DNO and the UK’s Genel Energy—have not yet signed. Outside APIKUR, Kurdistan-based KAR Group and Canada’s Forza Petroleum have also backed the deal.
The Kurdistan Ministry of Natural Resources confirmed this week that all companies, except one foreign operator, had signed on. On September 23, both the KRG and companies sent their approvals to Baghdad, and now await the federal Oil Ministry’s response for the State Oil Marketing Organization (SOMO) to restart exports.
Meanwhile, KRG Spokesman Peshawa Hawramany said Kurdistan’s current production capacity stands at 234,000 barrels per day and expressed confidence that the export deadlock will be resolved within 48 hours. He added that the deal with Baghdad covers an initial three-month period.
Hawramany also confirmed that with the arrival of the July budget transfer from Baghdad, the KRG will distribute public sector salaries. He said the regional government would transfer 120 billion dinars of domestic revenue to the federal treasury but noted that the State Council has not been consulted on non-oil revenues.
The Iraq–Türkiye pipeline has been idle since the International Chamber of Commerce ordered Ankara to pay Iraq $1.5 billion for unauthorized Kurdish exports. While Turkey is appealing the ruling, it has signaled readiness to restart flows once Baghdad and Erbil finalize terms.
The resumption of exports would mark a breakthrough in the long-running dispute and deliver a vital boost to both the Kurdistan Region’s strained finances and Iraq’s broader economy.