Peregraf
KDP President Masoud Barzani met on Wednesday with US Chargé d’Affaires to Iraq Steven Fagin at the Saladin Resort, where discussions focused on stalled Kurdish oil exports, support for American companies operating in the region, and the ongoing salary crisis, which has left public employees unpaid for June and July.
According to the Barzani Headquarters, talks also addressed the latest political and security developments in the region, relations between Erbil and Baghdad, and the implementation of agreements with US companies under the Kurdistan Regional Government (KRG) framework. Both sides stressed that public sector salaries and financial entitlements must not be caught up in political disputes.
The meeting emphasized strengthening ties between the Kurdistan Region and the United States. Other issues included the upcoming Iraqi parliamentary elections, the situation in Syria, reforms within the Ministry of Peshmerga, and the ongoing process of forming a new Kurdistan Regional Government.
Oil Exports Near Resumption
The talks come as efforts intensify to restart Kurdish oil exports through Turkey’s Ceyhan Port, halted since March 2023 after an international arbitration ruling ordered Ankara to stop independent Kurdish sales. The shutdown has cost Iraq and the Kurdistan Region an estimated $50 billion, according to Kurdish officials.
Turkey has signaled readiness to resume flows. Energy Minister Alparslan Bayraktar said last week that the Iraq–Turkey pipeline has been fully operational since October 2023 and is awaiting Baghdad’s approval. Ankara has submitted a draft framework agreement to Iraq’s Oil Ministry, noting that the current deal no longer meets international standards.
Erbil-Baghdad Breakthrough
On August 13, the KRG confirmed a new deal with Iraq’s Ministry of Oil to restart exports. Under the agreement, the Kurdistan Region will retain 50,000 barrels per day (bpd) for domestic consumption, while the remainder will be handed to Iraq’s State Oil Marketing Organization (SOMO) for export via Turkey.
The breakthrough provides relief to the Kurdistan Region, which has faced a severe financial crisis and months of unpaid salaries due to the export suspension.
Kurdish production is gradually recovering after drone attacks in July severely disrupted output. Yadgar Sadiq, head of the Runbin Organization for Transparency in Oil Processes, said production has rebounded to around 220,000 bpd, with seven of nine fields back online.
Gulf Keystone Petroleum has resumed pumping at the Shaikan field, which produces 45,000 bpd. However, the key Tawke and Peshkabour fields, with a combined capacity of 70,000 bpd, remain offline due to damage.
Despite recent progress, hurdles remain before exports can fully resume. Baghdad and Ankara must finalize a comprehensive framework, while international oil companies demand assurances on cost recovery and arrears.
Meanwhile, the Kurdistan Region continues to face financial strain, with revenues tied to oil deliveries and thousands of public employees still awaiting their salaries.