KRG PM Barzani and Iraqi PM Al-Sudani Affirm Oil Export Deal, Salaries and Budget in Phone Call

Peregraf

Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani said he held a phone call today with Iraqi Prime Minister Mohammed Shia’ al-Sudani, during which the two leaders reaffirmed the importance of resuming the Kurdistan Region’s oil exports and agreed on a series of steps to resolve financial and economic disputes.

According to Barzani, both sides described the resumption of exports as a "significant achievement" benefiting all Iraqis. He noted that al-Sudani thanked the KRG for its role in reaching the agreement, while he, in turn, praised the Iraqi federal prime minister’s efforts in overcoming obstacles that had stalled progress.

"We emphasized the necessity of finding a radical solution to the issue of salaries and entitlements of the Kurdistan Region’s citizens, thereby ending the resulting anxiety, and affirmed the importance of ensuring the monthly payment of this year’s salaries," Barzani said.

The two leaders also agreed to secure the Kurdistan Region’s fair share in the 2026 federal general budget. Barzani added that he hoped the new framework would pave the way for the enactment of the long-awaited Iraqi Federal Oil and Gas Law, providing clarity and stability in Iraq’s energy sector.

For his part, al-Sudani highlighted "promising economic opportunities" that could drive further development across Iraq, from Basra to the Kurdistan Region. The two sides also discussed the Development Road project, with Baghdad set to dispatch a specialized committee to Erbil soon to resolve outstanding issues and advance implementation.

Oil flows again after two and a half years

Earlier today, oil from the Kurdistan Region flowed through the Iraq–Türkiye pipeline to Turkey’s Ceyhan port for the first time in more than two years. A source at the KRG’s Ministry of Natural Resources told Peregraf that the exports resumed without problems: "The oil was exported successfully and has reached Turkish territory. It will arrive at Ceyhan port and the international market today."

The source added that the Region is currently exporting about 190,000 barrels per day, while reserving 50,000 barrels for domestic consumption.

Exports were halted on March 25, 2023, after an arbitration ruling in favor of Baghdad against Ankara over the pipeline, cutting vital revenues to the Kurdistan Region and removing around 230,000 barrels per day from global markets.

After prolonged negotiations, Erbil, Baghdad, and international oil companies reached what both governments have hailed as a "historic agreement." Under the deal, crude oil produced in the Kurdistan Region—except for volumes consumed locally—will be delivered to Iraq’s State Oil Marketing Organization (SOMO) via the North Oil Company at Peshkhabour. From there, it will be exported through Ceyhan, with revenues deposited into the federal treasury in Baghdad.

The agreement, consisting of six articles and a preamble, stipulates that the Kurdistan Region’s salaries and financial entitlements will be funded directly from this revenue. Officials say the breakthrough not only provides relief to public sector employees but also enhances Iraq’s standing in global energy markets.