Peregraf
Kurdistan Region Prime Minister Masrour Barzani and US Secretary of State Marco Rubio have agreed on the urgent need to resume oil exports from the Kurdistan Region through the Iraq-Türkiye Pipeline, according to a statement released by Barzani’s office on Thursday.
In a phone call, the two officials discussed recent regional developments and emphasized the importance of strengthening the enduring alliance between the Kurdistan Region and the United States. “We were aligned on the importance of resuming oil exports,” Barzani said, adding that both sides reaffirmed their commitment to maintaining close coordination to protect shared interests.
This latest effort to revive oil exports comes after a series of failed negotiations — most recently on March 6 — collapsed due to unresolved disputes over nearly $1 billion in payments to international oil companies and lingering concerns about future financial guarantees.
Oil exports from the Kurdistan Region and Kirkuk to Turkey have been halted since March 25, 2023, following an arbitration ruling by the Paris-based International Chamber of Commerce. The ruling favored Baghdad, concluding that Turkey had violated a bilateral agreement by allowing Kurdish oil exports without federal government approval. In response, Ankara shut down the pipeline at the Ceyhan port.
Since then, the Kurdistan Regional Government (KRG) has reportedly lost over $28 billion in revenue, according to the Association of the Petroleum Industry of Kurdistan (Apikur).
In a sign of a potentially shifting tone, Iraq’s Oil Ministry recently refuted Apikur’s claims that Baghdad has been avoiding serious talks, and instead called for “urgent negotiations” to resolve the long-standing impasse. Iraqi Oil Minister Hayan Abdul Ghani had earlier expressed cautious optimism about restarting exports at a rate of 185,000 barrels per day. However, technical, legal, and financial disagreements have continued to obstruct a final deal.
The prolonged halt is having a severe impact on the Kurdistan Region’s economy and putting growing fiscal pressure on both Erbil and Baghdad. International stakeholders, including the United States, are urging all sides to find a sustainable and fair resolution that restores vital oil revenues and honors existing contractual commitments.