Peregraf
Iraq’s Oil Minister announced that the government will disclose the exact date for the resumption of oil exports from the Kurdistan Region through the State Organization for Marketing of Oil (SOMO) to Türkiye’s Ceyhan port in the next few hours.
During a visit to the port of Khur Zubair in Basra, the minister confirmed that exports will initially restart at 185,000 barrels per day (bpd) and will gradually increase until reaching the quota specified in Iraq’s general budget.
The long-awaited move follows Iraq’s efforts to resolve disputes over oil revenue distribution and export logistics, which have stalled crude shipments from the Kurdistan Region since March 2023. The suspension, triggered by an international arbitration ruling in favor of Iraq in its dispute with Türkiye, has caused severe financial strain on the Kurdistan Regional Government (KRG).
Iraq’s Prime Minister Pushes for a New Oil Framework
Iraq’s Prime Minister Mohammed Shia’ al-Sudani has outlined a new plan aimed at ensuring financial stability and a fair revenue-sharing mechanism for oil companies operating in the Kurdistan Region. Speaking via video message at the Erbil Forum on Wednesday, Sudani reiterated his government’s commitment to ending disputes over oil exports and public sector salaries.
“With the passage of the budget amendment, we are now working to finalize the procedures for crude oil exports through the Ceyhan port,” Sudani said. He assured that the new framework would protect the rights of the Kurdistan Region’s citizens, ensuring salaries and financial entitlements are paid in full.
Budget Amendment Sets New Oil Terms
In a significant step toward resolving the crisis, Iraq’s parliament passed a budget amendment on February 2, 2025, which was later signed into law by the president. The amendment sets Kurdistan’s oil production and transportation cost at $16 per barrel, to be covered by Iraq’s Ministry of Finance.
Speaking to Peregraf, Kurdish MP Dilan Ghafoor noted that the $16 per barrel rate is temporary and will be reassessed within 60 days through an independent audit.
The amendment has been welcomed by the KRG and international oil companies, which see it as a step toward long-term stability. However, experts warn that financial and logistical hurdles must be swiftly addressed to prevent further disruptions.
As Iraq moves to restore full oil export capacity, global energy markets are watching closely. The coming days will reveal whether Baghdad and Erbil can successfully implement a sustainable agreement—or if new political and financial tensions will arise.