“The natural resources ministry in the Kurdistan Regional Government [KRG] and Iraq’s oil ministry have reached an agreement on the mechanism of exporting oil, and the agreement protocol has been signed by 23 members from delegations, with 17 members being from Iraq’s oil ministry delegation,” the ministry said in a statement.
Under the deal, the KRG will retain 50,000 barrels of oil daily for domestic use, while the remaining quantity will be handed to Iraq’s oil marketing arm for export through the Iraq-Turkey pipeline, according to the natural resources ministry. It also follows lengthy discussions between Iraqi and Kurdish delegations that began in July.
“For the resumption of the Kurdistan Region’s oil exports, it remains for the federal government to speak with the Turkish government and implement the process,” the ministry explained.
Last week, Iraq’s oil ministry said that Baghdad is “committed” to receiving 230,000 barrels per day from the Kurdistan Region - per a July deal - for export through Iraq’s State Oil Marketing Organization (SOMO).
In return, Baghdad pledged to release long-delayed public sector salaries in the Region. The federal government has since sent 975 billion dinars (around $737 million) to cover May salaries, but implementation has stalled over technical and financial disputes, leaving June and July wages unpaid.
Oil exports through the Iraq-Turkey pipeline have been suspended since March 2023, following a ruling by a Paris-based arbitration court that found Turkey in violation of the 1973 pipeline agreement by allowing the KRG to independently export oil since 2014.