Restarting Kurdish Oil Exports Still A Work In Progress

On February 28 Iraq’s Oil Ministry announced that Kurdistan would restart oil exports through Turkey in a matter of hours. That never happened as Baghdad and Irbil did not include the energy companies in its negotiations.

 

The central and regional Iraqi governments have been talking about renewing Kurdish oil sales for months now. On February 2 there was a breakthrough when parliament amended the budget to pay oil companies in Kurdistan $16 per barrel they produced and that KRG exports would be run by the State Oil Marking Organization. Two weeks later the Kurdish Natural Resource Minister Kamal Mohammed stated that there were no more technical obstacles between Baghdad and Irbil and that KRG sales would begin in March. Deputy Oil Minister Bassm Mohammed said that Kurdistan would begin at 185,000 barrels a day and could eventually grow to 400,000 barrels.

 

The new Trump administration was involved as well. Reuters reported that Washington threatened to sanction Iraq if it didn’t allow the Kurds to sell their oil again. The U.S. wants Iraq to increase its exports to make up for any future sanctions on Iranian petroleum sales that President Trump might impose. In fact, Secretary of State Marco Rubio tried to take credit for the agreement between the central and regional governments claiming that his phone call to Prime Minister Mohammed Sudani on February 27 was instrumental in the talks.

 

After the February 28 announcement however nothing happened. That was because of two main factors. First, the energy companies in Kurdistan were not included in the talks. They want assurances that they will be paid. In response, the Oil Ministry invited the Association of Petroleum Industry of Kurdistan which includes 8 companies operating in the KRG to discuss their contracts. Second, there is no word over whether Turkey has agreed to KRG exports. Baghdad says they are in talks in Ankara but there has been nothing official from that side. Turkey shut down its pipeline to Kurdistan in March 2023 after it lost a case to Baghdad in the International Chamber of Commerce Arbitration Board. As a result it owes Iraq $1.5 billion which it has not paid in the subsequent two years. It also wants to increase fees to use its pipeline from $1.5 per barrel to $3. Without Ankara’s approval there is nothing Baghdad and Washington can do to restart KRG exports. It appears that everything is still a work in progress.

 

SOURCES

 

Al Aalem, “US pressures restore the Ceyhan Pipeline … and Turkey did not abide by the international fine,” 2/24/25

 

Bas News, “Kurdistan Oil Exports Set to Resume with 185,000 Barrels per Day,” 2/23/25

 

Benny, John Aldroubi, Mina, “Iraqi Kurdish oil exports resumption to be announced in hours, ministry says,” The National, 2/28/25

 

El Dahan, Maha, Rasheed, Ahmed and Renshaw, Jarrett, “Exclusive: U.S. piles pressure on Iraq to resume Kurdish oil exports, sources say,” Reuters, 2/21/25

 

Al Mada, “Conflicting schedules delay Kurdistan oil exports .. Government promises clash with reality of disputes,” 3/2/25

 

Mayiwar, Sehend, “Kurdistan Region oil exports to resume next month: KRG minister,” Rudaw, 2/17/25

 

Middle East Monitor, “US and Iraq agree to reopen Iraq-Turkiye pipeline, says US State Department,” 2/26/25

 

Reuters, “Iraq invites global oil firms for talks on Kurdistan contracts,” 3/1/25

- “Iraq’s oil ministry says procedures for oil exports through Turkish pipeline complete,” 2/22/25

- "Turkey says 'nothing yet' on Iraq oil pipeline restart,” 2/19/25

 

Rudaw, "Iraqi parliament amends bill seeking Kurdish oil exports resumption,” 2/2/25

 

Salem, Amr, “Iraqi Kurdistan’s oil exports may resume within two days,” Iraqi News, 2/25/25