Erbil and Baghdad have reached a decisive oil export mechanism agreement. The Kurdistan Regional Government will keep 50,000 barrels per day for local needs. The rest will go to Iraq’s State Oil Marketing Organization for export. Now, the Iraq oil export mechanism final step requires discussions with Türkiye to make the process fully operational.
Therefore, this Iraq oil export mechanism deal marks a major shift after months of economic strain. The Kurdistan Regional Government’s Ministry of Natural Resources and the Iraqi Ministry of Oil worked closely to finalize it. Both sides began this process after thorough visits to all Kurdistan oil fields. These inspections helped resolve technical issues that delayed exports.
Additionally, after weeks of negotiations, the parties settled on clear terms. The Kurdistan Region will supply part of its oil for domestic consumption. The remaining output will flow through the federal export system. This method aims to restore stability to Iraq’s energy sector.
Moreover, more than 20 representatives signed the official document, showing strong commitment on both sides. Seventeen officials came from Iraq’s federal Ministry of Oil, while five represented the Kurdistan Regional Government. Their cooperation signals a new chapter in managing Iraq oil exports.
Therefore, the agreement now awaits coordination with Türkiye. Baghdad must negotiate with Ankara to reopen the pipeline to the Turkish port of Ceyhan. Without this final step, exports cannot resume. Both governments know the urgency because every day of delay costs the economy millions.
Moreover, oil exports from the Kurdistan Region stopped after a legal dispute. Iraq filed a case against Türkiye over export procedures. This action halted all flows through Ceyhan and caused severe financial losses. Estimates place the damage above $50 billion for both Iraq and the Kurdistan Region combined.
Officials stress that the export stoppage has hurt everyone involved. No side gained from the suspension, and both economies suffered equally. Restoring exports will improve revenue, attract investment, and strengthen regional cooperation.
This Iraq oil export mechanism agreement could bring much-needed relief. It offers a practical path toward restarting oil sales and rebuilding trust between Erbil and Baghdad. Once Türkiye joins the arrangement, oil shipments could resume swiftly, delivering benefits to the entire nation.