Iraq has completed preparations to resume oil exports from the Kurdistan region through the Iraqi-Turkish pipeline via the port of Ceyhan, the Ministry of Oil announced on Saturday. The move aligns with the budget law and Iraq’s OPEC production quota.
Prime Minister Mohammed Shia Al-Sudani stressed the urgency of restarting oil production and exports during a meeting with Kurdistan Region President Nechirvan Barzani. His statement followed a Reuters report claiming the administration of US President Donald Trump was pressuring Baghdad to resume Kurdistan’s oil exports or face sanctions alongside Iran.
Oil Minister Hayan Abdul Ghani confirmed that exports from Kurdistan would restart within a week, resolving a nearly two-year dispute that halted crude flows. He added that negotiations are ongoing in Erbil between federal and regional oil officials to finalize export mechanisms, with a target of 300,000 barrels per day through the state-owned SOMO company.
The suspension of oil exports from Kurdistan and Kirkuk since March 2023 has cost Iraq over $17 billion, according to experts. The longstanding dispute over oil management between Baghdad and Erbil often revolved around Kurdistan’s failure to meet its agreed quota of 250,000 barrels per day in the federal budget, leading to funding cuts.
Despite improved relations between Al-Sudani’s government and the Kurdistan Regional Government (KRG), uncertainty remains about when exports will resume. Turkish Energy Minister Alparslan Bayraktar recently stated that Ankara had not received official notice from Baghdad about restarting shipments, adding to the uncertainty.
Iraqi officials have issued conflicting statements. The prime minister’s advisor, Farhad Alaaldin, denied reports of possible US sanctions over delayed oil exports, while Deputy Speaker of Parliament Shakhwan Abdullah suggested that the Trump administration might introduce new economic measures against Iraq.
In remarks to Asharq Al-Awsat, Kifah Mahmoud, media advisor to Kurdistan Democratic Party leader Masoud Barzani, argued that political motives, rather than technical issues, are delaying oil exports. He accused factions in Baghdad of obstructing Kurdistan’s economic progress and opposing its federal status. He also pointed to recent attacks on energy infrastructure in the region as part of broader efforts to weaken Kurdistan’s autonomy.
Despite the challenges, Mahmoud remains optimistic that exports will resume soon. One key step was addressing oil company concerns by increasing the extraction cost per barrel in Kurdistan to $16 through amendments to the federal budget law.
