Recent developments indicate that there are no significant technical or political obstacles preventing the resumption of oil exports from the Kurdistan Region. According to Hamdi Sinjar, Deputy Director of the Iraqi State Oil Marketing Organization (SOMO), the remaining issues largely involve reaching a mutual understanding among key stakeholders.
Oil exports from the Kurdistan Region and Kirkuk via Turkey have been suspended since March 23, 2023, following a ruling by the International Chamber of Commerce in Paris. The suspension has led to financial losses estimated at over $24 billion. However, ongoing negotiations between the Kurdistan Regional Government (KRG), the Iraqi federal government, and international oil companies suggest that resolution may be close.
Sinjar stated that while a definitive agreement has not yet been concluded, discussions are productive and the existing issues are relatively straightforward. He emphasized that all parties — including regional authorities and international intermediaries — are actively working toward a solution.
A significant challenge in the negotiations involves the financial claims of oil companies operating in the Kurdistan Region. Iraqi Oil Minister Hayan Abdul Ghani acknowledged these concerns and noted that a formal commitment has been issued by the Ministry of Finance, promising to fulfill outstanding payments to the companies. Meanwhile, the matter of legacy debts remains open for future discussion, following the reimplementation of export operations.
Currently, four companies have maintained agreements with the KRG Ministry of Natural Resources and have renewed their contracts with SOMO, signaling operational readiness to recommence oil exports once a final political understanding is reached.
