President Masoud Barzani, US envoy stress Iraq’s independence in decision-making
ERBIL, Kurdistan Region - President Masoud Barzani and US Charge d’Affaires to Iraq Joshua Harris on Wednesday underscored the need for Iraq to exercise sovereignty over its decisions and pursue balanced relations with its neighbors, amid heightened US engagement in Iraq’s political process and growing regional tensions.
Ali Nizar, head of Iraq’s State Oil Marketing Organization (SOMO), told Rudaw that the body has informed senior government officials it will begin procedures to extend the deal. He said the agreement “will certainly be extended,” adding that “we are now awaiting a response from the Council of Ministers for that purpose.”
In late December, Baghdad, Erbil, and international oil companies agreed to extend a key agreement signed in September for an additional three months to allow continued exports of the Region’s oil.
Rudaw has learned that the consulting company, Wood Mackenzie, tasked with assessing production costs, has begun its work, with plans to resolve the issue by the end of March. In early January, Nizar said the federal oil ministry had signed a key contract with the British consultancy firm to determine the production cost of Kurdish oil.
Under the September agreement, an initial advance of $16 per barrel was set to cover extraction and transportation costs payable to international oil companies. The amount is temporary and will remain in place until an independent expert firm provides a more accurate cost assessment. The deal specifies that payments are to be made in the form of crude oil at prevailing market prices rather than in cash.
According to information obtained by Rudaw from the Iraqi Oil Ministry, a contract was signed on December 11, 2025, between Wood Mackenzie and the North Oil Company. The document states that the firm has begun work in coordination with the federal oil ministry and the North Oil Company, and has also contacted the Kurdistan Regional Government’s Ministry of Natural Resources and oil companies operating in the Region to obtain the necessary data.
“It is hoped that Wood Mackenzie will complete its work under the contract by the end of March 2026,” the document added.
In late September, Erbil, Baghdad, and international oil companies reached a tripartite agreement that paved the way for the resumption of oil exports through the Iraq-Turkey pipeline. Exports had been halted since March 2023, when a Paris-based arbitration court ruled in favor of Baghdad, concluding that Ankara violated a 1973 pipeline agreement by allowing Erbil to export oil independently beginning in 2014.
Ali Nizar, head of Iraq’s State Oil Marketing Organization (SOMO), told Rudaw that the body has informed senior government officials it will begin procedures to extend the deal. He said the agreement “will certainly be extended,” adding that “we are now awaiting a response from the Council of Ministers for that purpose.”
In late December, Baghdad, Erbil, and international oil companies agreed to extend a key agreement signed in September for an additional three months to allow continued exports of the Region’s oil.
Rudaw has learned that the consulting company, Wood Mackenzie, tasked with assessing production costs, has begun its work, with plans to resolve the issue by the end of March. In early January, Nizar said the federal oil ministry had signed a key contract with the British consultancy firm to determine the production cost of Kurdish oil.
Under the September agreement, an initial advance of $16 per barrel was set to cover extraction and transportation costs payable to international oil companies. The amount is temporary and will remain in place until an independent expert firm provides a more accurate cost assessment. The deal specifies that payments are to be made in the form of crude oil at prevailing market prices rather than in cash.
According to information obtained by Rudaw from the Iraqi Oil Ministry, a contract was signed on December 11, 2025, between Wood Mackenzie and the North Oil Company. The document states that the firm has begun work in coordination with the federal oil ministry and the North Oil Company, and has also contacted the Kurdistan Regional Government’s Ministry of Natural Resources and oil companies operating in the Region to obtain the necessary data.
“It is hoped that Wood Mackenzie will complete its work under the contract by the end of March 2026,” the document added.
In late September, Erbil, Baghdad, and international oil companies reached a tripartite agreement that paved the way for the resumption of oil exports through the Iraq-Turkey pipeline. Exports had been halted since March 2023, when a Paris-based arbitration court ruled in favor of Baghdad, concluding that Ankara violated a 1973 pipeline agreement by allowing Erbil to export oil independently beginning in 2014.