Peregraf
Iraqi Prime Minister Mohammed Shia’ al-Sudani announced on Thursday that the federal government and the Kurdistan Region have reached what he described as a “historic agreement” on the management of crude oil exports.
In a post on X (formerly Twitter), Sudani said: "Today we reached a historic agreement under which the Federal Ministry of Oil will receive crude oil produced from the fields in the Kurdistan Region of Iraq and export it through the Iraq–Türkiye pipeline. This ensures fair distribution of wealth, diversification of export outlets, and encouragement of investment. An achievement 18 years in the making."
The deal is expected to end more than a 2 year of deadlock over oil exports from the Kurdistan Region, which were halted in March 2023 following an international arbitration ruling that sided with Baghdad in its long-running dispute with Ankara.
Shortly after Sudani’s announcement, the Ministry of Oil released an official statement confirming the terms of the agreement. The ministry said that all crude oil produced in the Kurdistan Region—except volumes allocated for local consumption—will be delivered to the Iraq National Oil Company (SOMO) for export via the Iraq-Turkey pipeline through the Turkish port of Ceyhan.
The statement stressed that the process will follow “approved original procedures, the constitution, the texts of the Federal General Budget Law, and the decisions of the Federal Court.” It emphasized that the deal is the product of “strenuous efforts and continuous discussions over the past months, stemming from a shared national vision aimed at strengthening Iraq’s role as a major player in the global energy market.”
According to the ministry, the agreement establishes clear technical and regulatory mechanisms to ensure the smooth flow of exports and greater transparency in oil revenues. Officials said the framework will bolster public finances, increase federal budget revenues, and provide the government with greater capacity to fund services, development projects, and economic stability across Iraq.
The Ministry of Oil reaffirmed its commitment to managing natural resources “according to the principle of national sovereignty and the supreme interest of the country, and in a way that ensures a fair distribution of wealth among all the people of Iraq, in accordance with the constitution.”
For years, disputes over the management of oil and gas resources have strained relations between the federal government and the Kurdistan Regional Government (KRG). While the KRG maintained independent exports through Turkey, Baghdad insisted on its constitutional authority to oversee all of Iraq’s oil wealth.
Observers say the new agreement, if fully implemented, could pave the way for resolving broader financial and political disputes, including federal budget transfers and revenue-sharing with the Kurdistan Region. It also marks a significant step for Iraq in maintaining its global energy standing and reinforcing relations with Turkey, a key transit partner.