Baghdad and Erbil sign oil agreement; exports to resume within two days
Baghdad and Erbil sign oil agreement; exports to resume within two days
2025-09-22 05:32
Shafaq News – Kirkuk/Erbil
The Kurdistan Regional Government’s Ministry of Natural Resources, the Iraqi Ministry of Oil, and oil companies signed a tripartite agreement paving the way for the resumption of oil exports from the Kurdistan Region via the Ceyhan pipeline.
According to sources who spoke to Shafaq News Agency, the delegation arrived at the direct request of the Iraqi Oil Minister to finalize the technical and administrative details related to the agreement. The agreement is scheduled to be presented to the Council of Ministers, headed by Mohammed Shia al-Sudani, tomorrow, Tuesday, for a vote and formal approval.
The sources added, “The agreement includes granting the North Oil Company responsibility for exporting the region’s oil via the Ceyhan pipeline, which starts from the Kirkuk fields, passes through Turkish territory, and reaches the port of Ceyhan overlooking the Mediterranean Sea.”
Pumping operations are expected to resume within the next two days, following a forced shutdown that cost Iraq and the Kurdistan Region huge financial losses exceeding billions, according to the same sources.
Kurdistan Region’s oil exports were halted on March 25, 2023, following an international arbitration ruling requiring Türkiye not to allow the region’s oil exports without the approval of the federal government in Baghdad.
Since then, shipments of an estimated 450,000 barrels per day have been disrupted, including 400,000 barrels from the Kurdistan Region and 50,000 from the northern Kirkuk fields. This disruption has resulted in daily financial losses exceeding $30 million, according to unofficial estimates.
Observers also believe that the agreement to be signed goes beyond the technical aspects related to pumping and export operations, but extends to a political understanding between Baghdad and Erbil. The oil issue is one of the most contentious issues between the two sides. The new understanding is expected to contribute to strengthening mutual trust and opening the door to addressing other issues, such as the salaries of the region’s employees and Kurdistan’s share of the federal budget.
In this context, oil expert Ali Abbas told Shafaq News Agency, “Approving the agreement will represent a strategic step toward ending one of the most complex crises between Baghdad and Erbil, and will help recover some of the revenues lost over the past months, especially in light of the financial pressures facing the general budget.”
He added, “Resuming exports will enhance Iraq’s ability to fulfill its export commitments to global markets and will contribute to rebuilding confidence with foreign investing companies, which have also incurred losses as a result of the halt in export operations.”
According to experts, the resumption of the region’s oil exports via the Ceyhan pipeline will contribute to stabilizing Iraqi oil supplies to global markets, particularly European markets, which are increasingly dependent on Iraqi oil following geopolitical tensions in the region.
The agreement will also restore balance to the relationship between the Iraqi Ministry of Oil and the Kurdistan Regional Government’s Ministry of Natural Resources, after years of disputes over field management powers and contracts with foreign companies.
shafaq.com
