The Iraq Oil Marketing Company (SOMO) is actively working to renew the Kurdish Region’s oil export agreement. Its negotiation teams have already started, aiming to unify the region’s oil production and exports by the end of March.
Additionally, Ali Nizar Shatri, SOMO director, announced on social media that government officials have been informed about the extension steps.
Shatri said, “We are now waiting for approval from the Council of Ministers.”
Therefore, the federal government, the Kurdistan Regional Government, and the oil companies initially agreed on January 25, 2025, to extend the current agreement until the end of March 2026. Shatri added, “This agreement is one of the best. It will definitely be extended.”
He also emphasized that Kurdish Region oil exports reach about 200,000 barrels daily, supplying European and American markets.
Under the agreement, oil companies receive a $16 per barrel transport and shipping fee. Meanwhile, the government pays the oil revenue at daily prices until Wood Mackenzie completes its assessment.
Wood Mackenzie has begun collecting necessary data in coordination with the federal Ministry of Oil, the Northern Oil Company, and the Kurdistan Region’s Ministry of Natural Resources. The consultancy is expected to finish its work by the end of March 2026.
Kurdish Region oil exports began through the Turkish global port in March 2023. Later, on September 22, 2025, Baghdad, Erbil, and the oil companies agreed on a three-party arrangement to restart exports.
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