Kurdistan Region Oil Exports to Resume at 190,000 Barrels Tomorrow; SOMO: Agreement is Not Temporary

Peregraf

The Director General of the Iraq National Oil Company (SOMO) confirmed the resumption of Kurdistan Region oil exports at 06:00 AM tomorrow, September 27, 2025. He stated that "the agreement is not temporary, but rather a facilitator for long-term agreements and understandings, bringing an end to all past disputes."

The resumption of Kurdistan Region oil exports, after a two-year and six-month halt, marks a significant step towards resolving issues between the Kurdistan Regional Government and the Iraqi Federal Government, particularly the salary issue for the Region's employees, who have yet to receive their July salaries.

On the evening of Friday, September 26, 2025, Ali Nazar, Director General of the SOMO, announced in a press conference that "crude oil produced from the Kurdistan Region's fields will be handed over to SOMO for export."

According to the SOMO director, the current oil production in the Kurdistan Region is "approximately 240,000 barrels per day. Of this amount, 50,000 barrels are allocated for the Kurdistan Region's domestic needs, and approximately 190,000 barrels will be exported."

The amount of Kurdistan Region oil to be exported in the first phase is not "fixed and stable" and will increase with an increase in oil production. The Iraqi Ministry of Oil and SOMO Company aim to bring Kurdistan Region oil exports back to 400,000 barrels, an amount the Kurdistan Regional Government is committed to delivering under the budget law.

Before the drone attacks in mid-July of this year on the Kurdistan Region's oil fields, the Kurdistan Region's daily oil production was 300,000 barrels. However, due to these attacks, it dropped to around 100,000 barrels. In his latest statement, the Kurdistan Regional Government spokesperson announced that it had increased to "234,000 barrels per day."

Since March 25, 2023, when Kurdistan Region oil exports were halted, dozens of meetings have been held between the Region's Ministry of Natural Resources, the Iraqi Ministry of Oil, and oil companies. Although both governments quickly reached an agreement, foreign companies had conditions, especially regarding operating under their previous contracts and guaranteeing the repayment of their debts and future financial entitlements.

Ali Nazar, Director of SOMO Company, regarding the details of the Kurdistan Region's oil re-export, stated that the oil will be handed over by the companies and the Ministry of Natural Resources from Peshkhabour to the North Oil Company. From there, it will be exported to the Turkish port of Ceyhan and stored in oil depots. From there, companies with contracts with SOMO will purchase the oil.

As the SOMO director indicated, the agreement to resume oil exports comes at a time when "Europe needs this oil as an alternative to the shortage of Russian and other countries' oil exports."

According to the Iraqi budget law, $16 has been allocated for the cost of extracting and transporting one barrel of oil. However, instead of money, oil will be given to the companies, which was their demand, and they will then resell the oil themselves.

According to the tripartite oil agreement, SOMO Company itself must pay for the Iraq-Turkey oil pipeline. Currently, the Iraqi Ministry of Oil is working on renewing the oil pipeline agreement with Turkey, which expires in mid-2026.

Following the resumption of Kurdistan Region oil exports, a specialized international company will assess the cost of oil production in the Kurdistan Region. The cost of extracting each barrel of oil will be determined based on the results of that company's report, which must complete its work within three months. This was in accordance with an agreement between the Kurdistan Regional Government and the Iraqi Government, which was incorporated into the budget law amendment.

Ali Nazar stated that they have been able to reassure oil companies in the Kurdistan Region regarding the guarantee of their financial entitlements.

All foreign oil companies in the Kurdistan Region have signed the agreement to resume oil exports, with the exception of the Norwegian DNO company, which invests in the Tawke oil field. This company announced today that it will hand over the Region's share of oil to SOMO for re-export but will sell its own share in the Region's domestic market.

On the evening of September 25, 2025, after a full two years and six months of halting Kurdistan Region oil exports, Mohammed Shia' Al-Sudani, the Iraqi Prime Minister, announced reaching a "historic agreement" with the Kurdistan Region to resume oil exports.

Al-Sudani said in a tweet in Kurdish, Arabic and English, "We have reached an agreement in which the Iraqi Federal Ministry of Oil will receive crude oil produced from the fields located in the Kurdistan Region and export it via the Iraq-Turkey pipeline. This will ensure equitable distribution of wealth, diversify export sources, and encourage investment. We have been waiting for this achievement for 18 years."

For his part, Masrour Barzani, the Prime Minister of the Kurdistan Regionanl Government (KRG), stated, "The agreement between the Kurdistan Region and oil-producing companies with the Iraqi Federal Ministry of Oil and SOMO Company has been the result of the hard work and extensive efforts of teams and delegations from all sides. With this step, the Kurdistan Region's fields have reconnected with the global oil market."

Last night (September 26, 2025 ), the KRG's Ministry of Natural Resources announced, "The Ministry of Natural Resources and the Federal Ministry of Oil, following a tripartite agreement between the two ministries and the Region's oil-producing companies, agreed on the export of Kurdistan Region oil." It also stated, "Within these 48 hours, the re-export of Kurdistan Region oil will commence."

Later, the Secretary of the Kurdistan Region Council of Ministers revealed the time for the resumption of oil exports. Amanj Rahim announced, "It is planned that at 6 AM on Saturday, September 27, 2025, Kurdistan Region oil will once again reach the global market via the Kurdistan Region-Ceyhan oil pipeline."

Amanj Rahim also stated on his personal Facebook account, "Kurdistan Region oil will be marketed by SOMO Company, and its revenues will return to the federal treasury in Baghdad."

"The agreement consists of six main articles and an introduction and has been signed by the Iraqi Ministry of Oil, the Ministry of Natural Resources, and the oil companies, outlining the rights, entitlements, and obligations of all three parties," said the Secretary of the Kurdistan Region Council of Ministers.

The US State Department welcomed the agreement, stating it was "facilitated by the United States and provides tangible benefits to both American and Iraqi parties."

Today, Bafel Talabani, leader of the Patriotic Union of Kurdistan (PUK), in a message, extended a "warm welcome" to the agreement and stated, "We see the strategic depth of resolving issues in Baghdad."

Qubad Talabani, Deputy Prime Minister of the KRG, also described the agreement as a "great achievement for the people of Kurdistan and Iraq" and said that "it opens the door for fundamental resolution of all our other issues and disputes in accordance with the constitution and through continuous dialogue and negotiations."