Iraq is advancing efforts to restart Kurdish oil exports after negotiations between Baghdad, Erbil, and international oil companies. The deal reached its final stages. Officials expect oil pumping to begin soon. Most companies signed the tripartite agreement. A few major producers remain cautious about joining immediately.
Ali Nizar Faiq, director general of Iraq’s State Oil Marketing Organization (SOMO), said authorities and Kurdistan officials worked tirelessly over the past month. They created a strict mechanism to manage production, transport, and distribution. Faiq added that some procedural details will be documented in writing before operations start.
Kurdistan Region oil exports stayed suspended after a Paris-based arbitration court ruled in favor of Baghdad. The ruling said Ankara violated a 1973 pipeline agreement by allowing Erbil to export oil independently. Under the new deal, companies in the Kurdistan Region will receive crude oil instead of cash for their entitlements. Officials confirmed exports could restart in days. This move will support national refineries and increase Iraq’s market supply.
Norway’s DNO and its partner Genel Energy have not yet signed the agreement. DNO welcomed reports of the deal but stressed that secure payments for past arrears and future exports are essential. DNO Executive Chairman Bijan Mossavar-Rahmani noted that the company faces higher debt exposure from the Kurdistan Regional Government than other firms.
Faiq highlighted that restarting Kurdish oil exports will not affect Iraq’s OPEC production commitments. Iraq continues to meet its targets while increasing oil exports restart output. Projections indicate total Iraqi exports could surpass 3.4 million barrels per day, strengthening Iraq’s role in global energy markets.
Restarting Kurdish oil exports boosts Iraq’s energy sector and supports economic stability. It also ensures fair agreements with international partners.