Baghdad and Kurdistan agree to resume oil exports under a special mechanism.
Baghdad and Kurdistan agree to resume oil exports under a special mechanism.
2025-08-13 04:42
Shafaq News – Erbil
The Kurdistan Regional Government’s Ministry of Natural Resources agreed on Wednesday with the Iraqi Ministry of Oil to resume exports of the region’s crude oil under a special mechanism.
According to information obtained by Shafaq News Agency, the agreement stipulates that the export process will be conducted in accordance with the daily production of the fields, with 50,000 barrels allocated to meet the region’s internal needs, while the remaining quantities will be delivered to the federal government’s SOMO company.
The information also indicated that the draft agreement was signed by a delegation from the federal Ministry of Oil and a delegation from the region’s Ministry of Natural Resources, confirming that the federal delegation has returned to Baghdad.
According to the same information, the start of exports requires negotiations between the federal and Turkish governments before the process can be implemented.
An informed source revealed to Shafaq News Agency last month the details of the agreement between Baghdad and Erbil regarding the resumption of Kurdistan’s oil exports. He confirmed that the agreement stipulated that the regional government would hand over 240 billion dinars in revenues for the months of May and June, at a rate of 120 billion dinars per month, in addition to delivering 230,000 barrels of oil per day to Baghdad, in exchange for the latter sending the salaries of the region’s employees for those two months.
The roots of this crisis between the federal government in Baghdad and the Kurdistan Regional Government (KRG) lie in ongoing disagreements over oil export mechanisms and the unification of public revenues. This is a long-standing crisis that resurfaces from time to time, but it has worsened significantly since May 2025, when the federal government refused to send salaries to KRG employees.
shafaq.com
