After a 6-month halt.. Iraq announces a "historic agreement" to resume oil exports from Kurdistan

Iraqi Prime Minister Mohammed Shia' al-Sudani announced on Thursday the conclusion of what he described as a "historic agreement" that ends an 18-year crisis over the management and export of oil from the Kurdistan region of Iraq, paving the way for the resumption of pumping through the Turkish pipeline within 48 hours.

Al-Sudani wrote in a post on the "X" platform: "We have reached a historic agreement under which the Federal Ministry of Oil will receive the crude oil produced from the fields located in the Kurdistan region and will export it through the Iraqi-Turkish pipeline." He emphasized that this agreement "ensures fair distribution of wealth, diversification of export outlets, and encourages investment," describing it as an "achievement we have awaited for 18 years."

For its part, the Iraqi Ministry of Oil clarified in a detailed statement that the agreement stipulates "the start of pumping and delivering all crude oil production from the fields located in the Kurdistan region - except for the quantities allocated for local consumption - to the Iraqi Oil Marketing Company (SOMO) within Iraq." It added that SOMO will handle the export through the Turkish port of Ceyhan "according to the established legal procedures, the constitution, and the provisions of the federal budget law and federal court decisions."

The statement noted that this agreement is the result of diligent efforts in recent months, "stemming from a shared national vision aimed at enhancing Iraq's role as a key player in the global energy market, preserving Iraq's sovereignty, and firmly defending its national interests and the rights of all Iraqis."

It also confirmed that the agreement includes "establishing clear technical and regulatory mechanisms to ensure the smoothness of exports and adherence to transparency in oil revenues, which contributes to strengthening the state's public finances and increasing federal budget revenues," which will positively reflect on the government's ability to implement service and development projects and provide economic stability.

In a related context, the Ministry of Natural Resources in the Kurdistan region of Iraq announced the resumption of oil exports from the region within the next 48 hours.

This announcement comes after obstacles, most notably the demands of major foreign oil companies for guarantees for debt repayment, delayed the final approval from the Iraqi Cabinet, which was expected to be issued last Tuesday according to informed sources.

The agreement aims to return the export of about 230,000 barrels per day to global markets after a halt since March 2023, enhancing Iraq's position in the global energy market.