The Iraqi Oil Minister, Hayyan Abdul Ghani, has confirmed ongoing discussions regarding the resumption of oil exports from the Kurdistan Region of Iraq (KRG) as part of efforts to resolve longstanding budgetary and production issues. Speaking on April 16, 2025, Minister Abdul Ghani outlined the key elements of the talks that have been under deliberation for over a year and a half, aimed at establishing a clear framework for restarting exports.
According to Abdul Ghani, KRG oil exports are a crucial component of Iraq’s national budget, and discussions between the central government and the Kurdistan Regional Government (KRG) have focused on determining the appropriate mechanism to resume oil shipments. As part of this, the Iraqi government amended the budget law to account for oil production costs, which have been set at $16 per barrel for the Kurdistan Region, though this figure is subject to adjustment based on specific field conditions.
The minister further explained that the cost of oil production in Iraq varies by region. While some fields in the Kurdistan Region face higher production costs—up to $23 per barrel due to the region’s difficult terrain—production costs in other areas may be lower. Despite these challenges, the Iraqi government has emphasized that the initial cost of $16 per barrel is considered a provisional figure, subject to recalibration by a consulting firm.
Domestic oil consumption in Iraq is also a key topic in the budget law, which allocates 46,000 barrels per day for internal use, including refineries. This allocation is intended to support Iraq’s domestic energy needs while facilitating oil exports. However, the overall volume of oil exported from Iraq has declined, with the country now exporting around 3.3 million barrels per day, a reduction from the previous 3.45 million barrels per day.
Minister Abdul Ghani emphasized that negotiations between the Iraqi Oil Ministry and the KRG are ongoing, with another round of talks scheduled for April 19, 2025, in Baghdad. These negotiations are expected to accelerate the process of resolving the outstanding issues related to oil exports. The Iraqi government remains committed to expanding its oil production capacity, which currently exceeds 5 million barrels per day, and seeks a more favorable allocation within the Organization of the Petroleum Exporting Countries (OPEC).
Additionally, the minister highlighted the positive progress in the gas sector, noting that investment in gas production has reached 67% and is expected to rise to 70% by the end of the year. This marks another step toward enhancing Iraq’s energy independence and bolstering its position in the global oil market.