Iraq’s State Oil Marketing Organization (SOMO) has signaled that renewing the Kurdistan oil export deal remains possible. The organization said this is due to the deal’s current performance. However, the final decision will depend on the next Iraqi government.
SOMO Director Ali Nizar Al-Shatari mentioned that the Kurdistan Region currently exports about 200,000 barrels of oil per day. He confirmed that production and shipments continue without interruption. Authorities aim to increase output further. The goal is to strengthen state revenues and direct additional funds to the federal treasury.
In November, Kurdish Prime Minister Masrour Barzani described the agreement allowing Kurdistan oil exports via Turkey’s Ceyhan port as only a temporary solution. He emphasized the need to pass an Oil and Gas Law. This law would regulate Iraq’s natural resources and ensure fair management.
The exports through the Kirkuk–Ceyhan pipeline had stopped in March 2023. An arbitration panel at the International Chamber of Commerce in Paris had ordered Turkey to pay Iraq $1.5 billion. This was for allowing oil shipments from the Kurdistan Regional Government (KRG) without Baghdad’s approval.
Flows resumed on September 27, 2025, after talks between Iraq’s Ministry of Oil and the Kurdish Ministry of Natural Resources. They agreed on a framework placing SOMO in charge of managing and marketing Kurdish crude exports. This framework ensures stability in Kurdistan oil exports. It also provides transparency and strengthens cooperation between Baghdad and Erbil.
Experts say the current framework shows the Kurdistan oil export deal is working well. SOMO confirmed that if the deal continues to perform, renewal remains an option. Meanwhile, the government prepares for long-term regulations to govern Iraq’s oil industry.
The Kurdistan oil export deal could play a key role in Iraq’s future oil strategy. With steady exports and plans to increase production, both Baghdad and Erbil aim to secure revenue and economic stability.
