Baghdad and Arbil agree to resume Kurdish oil exports: government

Baghdad and Arbil agree to resume Kurdish oil exports: government
by AFP Staff Writers
Baghdad (AFP) July 17, 2025

The Iraqi government announced Thursday an agreement to resume crude exports from the autonomous Kurdistan region after a more than two-year halt and amid drone attacks on oil fields.

Lucrative oil exports have been a major point of tension between Baghdad and Arbil, with a key pipeline through Turkey shut since 2023 over legal disputes and technical issues.

The Kurdistan regional government shall "immediately begin delivering all oil produced" in the region's field to Baghdad's State Oil Marketing Organisation (SOMO) "for export", the Iraqi government said in a statement.

The quantity should be no less than 230,000 barrels per day, and Baghdad will pay an advance of $16 a barrel.

The Kurdistan regional government said in a statement it "welcomes" the deal, and hoped all agreements would be respected.

Oil exports were previously independently sold by the Kurdistan region, without the approval or oversight of the central administration in Baghdad, through the port of Ceyhan in Turkey.

But the region's official oil exports have been frozen since March 2023 when the arbitration tribunal of the International Chamber of Commerce in Paris ruled oil exports by the regional government illegal and said that Baghdad had the exclusive right to market all Iraqi oil.

The decision halted the region's independent exports by pipeline via Turkey.

Ever since, the federal and regional governments have been haggling over the production and transport costs payable to the region and its commercial partners among other financial issues.

The latest agreement should also solve the long-standing issue of unpaid salaries for civil servants in Kurdistan, which has been tied to the tension over oil.

The federal finance ministry will pay salaries for May once SOMO confirms it has received the oil at the Ceyhan port.

The regional government said it hoped that the issue of salaries would be treated separately from any disputes.

The deal comes after a tense few weeks in Kurdistan, which has seen a spate of unclaimed drone attacks mostly against oil fields, with the latest strike hitting a site operated by a Norwegian firm on Thursday morning -- the second attack in two days on the same site.

There has been no claim of responsibility for any of the past week's attacks, and Baghdad has promised an investigation to identify the culprits.