Foreign oil companies operating in the Kurdistan Region have outlined three key conditions before they restart oil production and exports. The companies want stronger security measures, a clear payment mechanism, and guarantees that authorities will repay outstanding debts.
The conditions emerged after Iraqi Prime Minister Mohammed Shia’ Al Sudani issued an order on June 3, 2026, directing oil companies in the Kurdistan Region to resume operations. The move aims to revive oil production and restore exports through the Iraq-Turkey pipeline.
Economic expert Nabil Al-Marsoumi explained that oil producers have presented three main demands. First, they want authorities to protect oil fields from drone and missile attacks. Security concerns have increased in recent years, making protection a top priority for international operators.
Second, the companies seek a transparent system that guarantees regular payments for their operations. They want a clear financial mechanism that defines how and when they will receive their revenues. Third, they insist on a firm commitment to repay old debts according to Iraq’s federal budget law.
Al-Marsoumi also revealed that the Norwegian company DNO ASA has formally stated that it will not restart production and pipeline exports until authorities settle nearly $1 billion in overdue payments. The company considers the repayment issue essential before any return to full operations.
Meanwhile, a source from the Kurdistan Regional Government’s Ministry of Natural Resources said officials have already sent a formal request to oil companies, urging them to resume work. However, the companies continue to demand security guarantees before restarting production.
The Kurdistan Regional Government hopes to increase output to around 250,000 barrels per day once operations resume. Officials believe this target could strengthen revenues and support the region’s economy.
On Wednesday, the Kurdistan Council of Ministers met to discuss the oil sector and public revenues. Participants proposed forming a high-level ministerial committee to develop a permanent mechanism for managing oil issues and resolving outstanding disputes with the federal government. The proposal aims to protect the Kurdistan Region’s financial rights and create a more stable framework for future energy cooperation.
