Delegation of Iraqi and KRG Officials Meets Oil Companies in Erbil to Discuss Resumption of Exports

Peregraf

A delegation from the Iraqi federal government and the Kurdistan Regional Government (KRG) met with international oil investment companies in Erbil to address the long-stalled oil exports from the Kurdistan Region and seek solutions to outstanding obstacles.

Umed Sabah, President of the Diwan of the KRG Council of Ministers, said the meeting centered on the operational status of oil companies in the Region and the prospects for restarting exports. “The meeting discussed the activities of the oil investment companies. The two sides discussed the issue of resuming oil exports with the companies, and in return, listened to their opinions in this regard,” Sabah stated.

The move comes days after Iraqi Oil Minister Hayyan Abdulghani announced that oil exports from the Kurdistan Region are expected to resume next week. Speaking during a panel at the 9th Sulaymaniyah Forum at the American University of Iraq, Sulaimani (AUIS) on April 16.

Oil exports from the Kurdistan Region and Kirkuk to Turkey were halted on March 25, 2023, after the Paris-based International Chamber of Commerce ruled in favor of Baghdad in an arbitration case. The court found that Turkey had breached a bilateral agreement by allowing Kurdish oil to be exported without Baghdad’s consent, leading Ankara to close the pipeline at Ceyhan port.

KRG Prime Minister Masrour Barzani, also speaking at the Sulaymaniyah Forum, attributed the prolonged suspension to legal and political disputes between Erbil and Baghdad. He emphasized the KRG's position on protecting the rights of foreign companies operating under the Region’s distinct contractual model.

“The Kurdistan Region has lost more than 29 billion dollars due to the suspension of oil exports and has not been compensated,” Barzani said. He noted that two legal complaints filed by foreign oil companies in Iraqi courts were resolved in favor of the companies, but the rulings have yet to be implemented.

Barzani reaffirmed that a KRG technical delegation will return to Baghdad to continue negotiations with the federal Oil Ministry. “The consent of foreign oil companies remains essential,” he said, stressing the importance of respecting existing contracts and investment conditions.

The resumption of exports is widely seen as a crucial step toward easing economic pressure in the Kurdistan Region and improving relations between the regional and federal governments after more than a year of strained ties over energy policy and revenue sharing.