The Kurdistan Regional Government says Iraq exports 118,000 barrels of oil per day through the Kurdistan Region’s pipeline to international markets.
A source at the KRG Council of Ministers mentioned that 53,000 barrels come from Iraq’s North Oil Company, while 65,000 barrels come from fields located in the Kurdistan Region.
The pipeline has become an important route for Iraqi oil exports and a key source of national revenue. Its role has grown as security problems limit Iraq’s ability to move crude through the Strait of Hormuz.
The KRG, Iraq’s Ministry of Oil and foreign energy companies are continuing negotiations over contracts, production expenses and transportation costs. The talks aim to create conditions that allow companies to increase output from oil fields across the Kurdistan Region.
Officials have currently set the combined extraction and transportation payment at $14 for each barrel. However, international oil companies argue that actual costs at several fields exceed that figure.
The companies want the federal government to reimburse their real expenses. They say fairer payments would allow them to invest in field development, repair infrastructure and restore facilities damaged by recent drone attacks.
Security concerns have disrupted production at several sites and reduced the Region’s overall output. Companies say they need sufficient funding to repair damaged equipment and safely raise production.
The current export level remains below the pipeline’s full capacity. However, officials view the route as strategically important while southern shipping channels face disruption.
Further increases will depend on security improvements, updated contractual arrangements and agreement on production costs. If Baghdad, Erbil and the companies resolve those issues, the Kurdistan pipeline could carry larger volumes and generate more revenue for Iraq.
For now, negotiations continue as all sides seek to protect exports, restore damaged fields and maintain reliable access to global energy markets.
