Peregraf
The Iraqi State Oil Marketing Company (SOMO) announced on Tuesday that an agreement to resume oil exports from the Kurdistan Region is in its final stages, with Baghdad and Erbil reaching a robust mechanism for pumping the region’s crude through the Iraq–Türkiye Pipeline.
SOMO Director Ali Nazar Al-Shatri told the Iraqi News Agency (INA) that months of negotiations involving the Ministry of Oil, the Kurdistan Regional Government’s Ministry of Natural Resources, and international oil companies had brought the sides close to a deal. "We have arrived at a robust mechanism for implementing this agreement and pumping the quantities produced from the region. We are awaiting the pumping procedures after finalizing all details, and some matters will be documented in writing," he said.
Al-Shatri noted that international companies operating in Kurdistan required assurances on payment of their dues. "The company has worked to reassure these companies, and the government will announce the date soon after the official signing of this agreement," he added.
On the same day, Norwegian oil and gas operator DNO ASA said it welcomed reports of progress but insisted that payment guarantees for both past arrears and future sales must be secured before exports resume.
"DNO has consistently stated that it is eager to resume exports but pursuant to agreements that ensure payment surety for both past arrears and future exports," the company said in a statement from Oslo. Executive Chairman Bijan Mossavar-Rahmani emphasized DNO’s significant exposure, noting that "as the largest producer, the arrears owed to us by the KRG dwarf those of many of the others, which also means that our exposure to future payment risk is also substantially higher."
Mossavar-Rahmani said DNO has proposed "easy fixes that can be quickly agreed" with Erbil to resolve the payment dispute. The company, alongside its partner Genel Energy, has recently begun repairing facilities at the Tawke and Peshkabir fields damaged by drone attacks in July, and plans to drill eight new wells in 2026 to target production of up to 100,000 barrels per day.
The latest developments follow reports that Baghdad, Erbil, and oil companies signed a preliminary tripartite deal in Erbil to restart exports of about 230,000 barrels per day (bpd) from Kurdistan, suspended since March 2023. According to Iraqi officials cited by Reuters, the plan envisions SOMO marketing the crude from the Turkish port of Ceyhan, with revenues placed in an escrow account for distribution to producers.
However, the draft agreement does not settle roughly $1 billion in arrears owed to companies for sales made before exports were halted, including nearly $300 million claimed by DNO. Both DNO and Genel Energy have yet to endorse the repayment framework.
The Iraq–Türkiye Pipeline was shut after an international arbitration ruling in March 2023 ordered Ankara to compensate Baghdad $1.5 billion for unauthorized Kurdish exports. Turkey is appealing the decision but has indicated readiness to reopen the pipeline. Washington has also pressed Baghdad, Erbil, and international operators to finalize an agreement to restore the vital flows.