Peregraf
The Kurdistan Regional Government (KRG) has formally confirmed its complete fulfillment of the prerequisites necessary for restarting oil exports and transferring revenues to the federal treasury. According to the KRG, all outstanding issues on its part have been resolved.
This confirmation was made during today’s meeting of the Council of Ministers, chaired by Prime Minister Masrour Barzani. During the session, Acting Minister of Natural Resources Kamal Muhammad Saleh provided an in-depth update on recent negotiations aimed at reinitiating oil exports from the region.
KRG Reiterates Compliance, Seeks Federal Partnership
Minister Saleh highlighted that the KRG has fully complied with its commitments under Article 1 of Iraq’s Federal Budget Law, as well as the agreements reached in collaborative discussions involving federal authorities and oil firms. He stated that the regional government had removed all obstacles to the resumption of oil exports and the corresponding financial transfers.
Following his remarks during the session, Omed Sabah, Chief of the Council of Ministers’ Office, and Amanj Rahim, Secretary of the Council of Ministers, discussed the progress made in ongoing talks with the federal government and energy companies. They emphasized the KRG’s dedication to resolving the remaining technical and procedural matters.
Council Advocates for Prompt Resolution of Export Delay
The Council of Ministers expressed strong support for continued engagement between the KRG Ministry of Natural Resources and Iraq’s Ministry of Oil to accelerate the resumption of oil flows. The KRG urged all stakeholders—including the Ministry of Oil, international oil companies, and the State Organization for Marketing of Oil (SOMO)—to intensify coordination to reach a definitive resolution, thereby preventing further fiscal damage to Iraq’s national revenues, which have already incurred substantial losses.
The suspension of oil exports from the Kurdistan Region, initiated following a ruling by the International Chamber of Commerce in March 2023, has significantly strained Iraq’s economy. Despite the KRG’s apparent willingness to resume exports under federal budgetary guidelines, unresolved issues related to payment mechanisms and contracts with oil companies have delayed a final agreement.
While formal negotiations continue, the Kurdistan Region faces a significant challenge from ongoing oil smuggling operations. Reports indicate that approximately 200,000 barrels of oil are illicitly transported daily to neighboring countries, generating substantial revenues that bypass the official channels of the Iraqi federal government. These unauthorized exports not only deprive the public treasuries of essential funds but also contribute to environmental degradation and infrastructure damage due to increased heavy truck traffic.