The Kurdistan Regional Government (KRG) has extended its oil agreement with Baghdad until March 31, 2026. Officials say the extension will help maintain stable oil exports and support ongoing budget negotiations with the federal government.
Acting Minister of Natural Resources Dr. Kamal Mohammed announced the decision during a press briefing. He said oil production in the Kurdistan Region remains steady. According to him, current production levels range between 250,000 and 270,000 barrels per day across the region’s oil fields. This output reflects continued operations without disruption.
Dr. Kamal Mohammed also provided updated export figures. He said that since the resumption of exports, Kurdistan has sold a total of 22 million barrels of oil through Iraq’s national oil marketing company, SOMO. These exports follow the agreed mechanism between Erbil and Baghdad and contribute directly to federal oil revenues.
Regarding future oil relations, the minister confirmed that the oil agreement with Baghdad has been officially extended until the end of March 2026. He stressed that there are no legal or technical obstacles facing Kurdistan’s oil exports at this time. According to him, exports are proceeding smoothly under the current framework, which benefits both sides.
The oil agreement with Baghdad also plays a major role in budget discussions. Dr. Kamal Mohammed said the KRG continues dialogue with the federal government to secure the Kurdistan Region’s share of Iraq’s federal budget. He explained that the regional government has prepared a comprehensive and detailed plan to address financial issues. This plan aims to make budget allocations and financial rights a central pillar of future negotiations.
The minister emphasized that stable oil exports help strengthen trust between Erbil and Baghdad. He added that continued cooperation is essential to protect revenues and ensure regular salary payments to public sector employees in the Kurdistan Region.
The resumption of Kurdistan’s oil exports followed a political agreement announced on September 25 last year by Iraqi Prime Minister Mohammed Shia’ Al-Sudani. One day later, on September 26, oil exports through pipelines to Turkey’s international port officially restarted. Since then, the Kurdistan Region has continued exports under federal oversight.
KRG officials believe extending the oil agreement with Baghdad will reduce uncertainty in 2026. They say it also creates a clearer path to resolving long-standing disputes over oil, revenues, and budget entitlements.
