Kurdish oil export mechanism: New details
Shafaq News – Kirkuk
Following the newly reached agreement between Iraq’s Ministry of Oil and the Kurdish Ministry of Natural Resources, new details have emerged concerning the export mechanism for crude oil from the Kurdistan Region.
According to a production official at the North Oil Company (NOC), the company will handle the technical aspects of the export process, while Iraq’s State Organization for Marketing of Oil (SOMO) will oversee the commercial sale and manage revenues.
The source emphasized that this framework aims to unify Iraq’s oil exports under a single national system, ensuring all proceeds are channeled into the federal treasury. “The move is expected to enhance transparency, boost state revenues, and resolve years of disputes over independent oil sales by the Kurdistan Regional Government (KRG).”
Kurdistan Region Prime Minister Masrour Barzani welcomed the agreement, calling it a "historic day" that removes a major barrier to securing financial entitlements for the Kurdish people.
"This is a significant moment for the people of Kurdistan, who have long endured uncertainty," Barzani stated, praising the negotiation teams on both sides. "With the resumption of exports, it is crucial that all constitutional rights of the Kurdistan Region are fully honored."
Earlier, Prime Minister Mohammed Shia al-Sudani announced a so-called “historic” oil agreement with the Kurdistan Region. Iraq’s Oil Ministry said the deal was the result of months of technical and legal discussions to develop a clear and transparent mechanism for oil exports and revenue sharing.
Exports from the Kurdistan Region were halted on March 25, 2023, after an international arbitration ruling ordered Turkiye to stop allowing Kurdish crude shipments without Baghdad’s consent. Since then, an estimated 450,000 barrels per day—400,000 from the Kurdistan Region and 50,000 from Kirkuk—have remained offline, resulting in financial losses of $22–25 billion, according to Foreign Minister Fuad Hussein.
