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Rudaw Net
17 hours ago
- Business
- Rudaw Net
Erbil, Baghdad edge toward oil export deal despite oil volume dispute: Sources
Also in Iraq Baghdad hotel venue for Arab Summit hit by fire Nearly 400 gazelles go missing in Diyala province reserve Iraqi Supreme Judicial Council approves top judge's retirement KRG delegation arrives in Baghdad amid efforts to resolve financial disputes A+ A- ERBIL, Kurdistan Region - Talks between Erbil and Baghdad on resuming Kurdish oil exports are progressing, though a key dispute over export volumes remains unresolved. While the federal government insists on 400,000 barrels per day (bpd), the Kurdistan Regional Government (KRG) has proposed an initial figure of 280,000 bpd, sources from both sides told Rudaw. Resolving the issue is critical, as it directly affects the salary crisis impacting over 1.2 million public sector employees in the Kurdistan Region. Informed sources in both Erbil and Baghdad confirmed to Rudaw that the latest round of meetings, held in Baghdad on Sunday, took place in a 'calmer atmosphere,' easing previous tensions. The KRG delegation, led by Kamal Mohammed, acting natural resources minister, met with federal officials to to iron out the details 'The [latest] talks were held in a calmer environment, breaking past tensions, and there has been progress on the oil issue,' a senior Baghdad source told Rudaw. Oil exports through the Iraq-Turkey pipeline have been halted since March 2023, following a ruling by a Paris-based arbitration court which found that Turkey violated a 1973 pipeline agreement by allowing Erbil to export oil independently. On Wednesday, Kurdistan Region Prime Minister Masrour Barzani said the halt in exports had cost the Region over $25 billion in lost revenues. In February, the Iraqi parliament amended the federal budget law, including a provision for a $16-per-barrel fee to cover production and transportation costs for international oil companies (IOCs) operating in the Kurdistan Region. The amendments also required both sides to jointly appoint an international consultancy within 60 days to assess these costs. If no consensus is reached, the federal cabinet will select the consultancy. The budget amendments were intended to facilitate the resumption of Kurdish oil exports. Rudaw has learned that a technical delegation from Baghdad visited Erbil last Wednesday to discuss the oil file and revenue-sharing mechanisms. Bridging the barrel gap A primary sticking point in the negotiations remains the volume of oil the KRG must hand over to Iraq's State Oil Marketing Organization (SOMO). The KRG has proposed transferring 280,000 bpd to SOMO as a first phase, reserving an additional 120,000 bpd for domestic consumption. Baghdad, however, insists on the full 400,000 bpd, with SOMO maintaining full control over exports. A SOMO official, speaking on condition of anonymity due to the sensitivity of the talks, told Rudaw on Sunday, 'The meetings are ongoing,' while noting that 'the matter is complex and significant. It is not just a SOMO issue - it involves Iraq as a whole and the [federal] oil ministry. SOMO is only the implementer." Iraq's 2023–2025 federal budget law, passed in June 2023, allocates 12.6 percent of the national budget to the Kurdistan Region - on the condition that it delivers 400,000 bpd. Tensions between Erbil and Baghdad escalated in late May when the federal finance ministry halted all transfers to the KRG, claiming that it exceeded its 12.67 percent share of the 2025 budget. The freeze has suspended salary payments for over 1.2 million KRG public employees, drawing strong criticism from Kurdish political parties, who say the move is unconstitutional. The move effectively suspended salaries for over 1.2 public sector employees in the Region and sparked sharp condemnation from Kurdish parties, who argue the suspension is politically motivated and unconstitutional. Sources in both Erbil and Baghdad underlined to Rudaw on Sunday that reaching a final agreement on oil volumes is essential to resume salary payments. Unpaid debts and scrutinizing revenues Beyond export volumes, another major obstacle is the financial entitlements and outstanding debts owed to IOCs. A KRG source told Rudaw that these companies are seeking two guarantees: a fixed payment of $16 per barrel fee to cover production and transportation costs, as stipulated in the budget law, and the repayment of nearly $1 billion of accumulated debts the IOCs say they are owed. Meanwhile, Baghdad is seeking greater oversight of the KRG's non-oil revenues. In a letter sent in late May, Iraqi Finance Minister Taif Sami cited the KRG's failure to remit its full share of revenues as justification for withholding budget transfers. During their visit to Erbil on Thursday, Baghdad's technical delegations proposed sending federal teams to monitor KRG-controlled revenue sources, such as customs and border crossings, to verify income in coordination with federal authorities. This demand aligns with Iraq's Federal Financial Management Law No. 6 of 2019, which mandates that 50 percent of federal customs and tax revenues be distributed to provinces - including the Kurdistan Region - with the remaining 50 percent going to the federal government. Hevidar Shaaban, a financial advisor based in Erbil, noted to Rudaw on Sunday that both the KRG and the federal government representatives have reportedly reached a preliminary agreement on three main points: the KRG committing to transfer 50 percent of its non-oil revenues to the federal government, customs operations will be integrated with federal systems, and in return, the federal government will be obliged to resume salary payments to KRG employees. Hastyar Qadir contributed to this article.
Shafaq News
22-05-2025
- Business
- Shafaq News
KRG: Kurdistan generates half of gas needed for power sector
Shafaq News/ The Kurdistan Region is meeting around half of its electricity sector's fuel needs through current gas production, Acting Natural Resources Minister Kamal Mohammed stated on Thursday. Speaking at an energy conference in Washington, Mohammed said the Region produces 650 million cubic meters of natural gas but needs one billion to meet demand, and is generating 400,000 barrels of oil per day for export via the Turkish port of Ceyhan. Regarding the recent energy contracts signed between the Kurdistan Regional Government and US firms, he noted that these deals fall within the Region's constitutional authority.
Shafaq News
20-05-2025
- Business
- Shafaq News
Kurdistan details US energy deals: Not coordinated with Baghdad
Shafaq News/ The Kurdistan Region is seeking to deepen political, economic, and military ties with the United States and expand energy cooperation with American firms, the Region's Acting Minister of Natural Resources Kamal Mohammed said on Monday. Speaking at a press conference in Washington, Mohammed announced the signing of two major agreements in the gas and oil sectors during the visit. The first agreement will tap into Kurdistan's gas fields to generate electricity not only for the Region but also for other areas across Iraq connected to the national grid, while the second deal builds on this momentum, paving the way for joint oil and gas extraction from Kurdish fields in partnership with another US energy company. Mohammed confirmed that the contracts are structured as production-sharing agreements, consistent with previous arrangements, and noted that "there was no coordination with the federal government in Baghdad regarding these agreements." He emphasized, however, that the deals would "enhance Iraq's infrastructure, especially the gas-related agreement." In addition, the gas deal will help address electricity shortages in the region, support industrial sector growth, and potentially provide gas for residential use in the future. The minister underlined that the Regional Government is actively working to expand its ties with international actors, stating, "The United States is a strategic ally of the Region, and many American companies are already operating in Kurdistan." Kurdistan Prime Minister Masrour Barzani, who is leading the official visit to Washington, oversaw the signing of the two energy agreements with US oil firms HKN Energy and Western Zagros at the US Chamber of Commerce. According to the Regional Government, the deals, estimated to be worth tens of billions of dollars, are aimed at developing the oil and energy sectors and strengthening the Region's economic infrastructure.
Rudaw Net
19-02-2025
- Business
- Rudaw Net
KRG urges restart of Kurdistan oil exports ‘as soon as possible'
Also in ECONOMY Turkey says Iraq yet to confirm resumption of Kurdistan oil exports Dana Gas reports $445 million revenue in 2024 DNO reports 'stellar production' in Kurdistan Region 2024 revenues Iraqi, Kurdish PMs welcome passage of amendment to federal budget law A+ A- ERBIL, Kurdistan Region - The Kurdistan Regional Government (KRG) on Wednesday urged the resumption of the Region's oil exports to the international markets in the nearest future, tasking its concerned ministry to continue cooperating with Baghdad in this regard. The Kurdish Council of Ministers held its weekly meeting on Wednesday, discussing a range of issues, including oil. It 'emphasized that the Region requests to resume oil exports as soon as possible, which is in the interest of all parties,' according to a statement. It added that the two-year suspension has 'resulted in several billion dollars in losses to Iraq's general revenue.' Kamal Mohammed, the Kurdistan Region's acting natural resources minister, told Rudaw on Monday that oil exports from the Region will resume next month. However, he emphasized that Turkey's consent is required for the oil to be transferred through its territory. On the same day, the Iraqi oil minister made similar comments, confirming that Kurdish oil exports would restart next week. However, Turkish Energy Minister Alparslan Bayraktar stated on Wednesday that his country has received 'nothing yet' from the Iraqi side regarding the resumption, when asked about the timeline, according to Reuters. In early February, the Iraqi legislature passed an amendment to the federal budget law, increasing compensation to international oil companies (IOCs) operating in the Kurdistan Region. This amendment is seen as key for the resumption of Kurdish oil exports. The amendment was published in the Official Gazette on Tuesday. The KRG said it had instructed its natural resources ministry 'to continue cooperation and coordination with the Federal Oil Ministry regarding the procedures and mechanisms for resuming the Region's oil exports, especially now that the law has entered into force, there are no legal obstacles to the process, and the law has clearly defined the roadmap for the matter.' Oil exports from the Kurdistan Region via the Iraq-Turkey pipeline were suspended in March 2023 following a ruling by a Paris-based arbitration court, which sided with Baghdad. The court determined that Ankara violated a 1973 pipeline agreement by permitting Erbil to export oil independently starting in 2014. Before the suspension, Erbil was exporting approximately 400,000 barrels of oil per day via the Iraq-Turkey pipeline, in addition to around 75,000 barrels of oil from Kirkuk.
Rudaw Net
19-02-2025
- Business
- Rudaw Net
Turkey says Iraq yet to confirm resumption of Kurdistan oil exports
Also in ECONOMY Dana Gas reports $445 million revenue in 2024 DNO reports 'stellar production' in Kurdistan Region 2024 revenues Iraqi, Kurdish PMs welcome passage of amendment to federal budget law Erbil-Baghdad financial talks expected to conclude soon: Ministry A+ A- ERBIL, Kurdistan Region - Turkey has not yet received an update from Iraq regarding the resumption of the Kurdistan Region's oil exports, Ankara's energy minister stated on Wednesday, just days after Kurdish and Iraqi officials indicated the process would restart soon. Kamal Mohammed, the Kurdistan Region's acting natural resources minister, told Rudaw on Monday that oil exports from the Region will resume next month. However, he emphasized that Turkey's consent is required for the oil to be transferred through its territory. On the same day, the Iraqi oil minister made similar comments, confirming that Kurdish oil exports would restart next week. However, Turkish Energy Minister Alparslan Bayraktar stated on Wednesday that his country has received 'nothing yet' from the Iraqi side regarding the resumption, when asked about the timeline, according to Reuters. Oil exports from the Kurdistan Region via the Iraq-Turkey pipeline were suspended in March 2023 following a ruling by a Paris-based arbitration court, which sided with Baghdad. The court determined that Ankara violated a 1973 pipeline agreement by permitting Erbil to export oil independently starting in 2014. Before the suspension, Erbil was exporting approximately 400,000 barrels of oil per day via the Iraq-Turkey pipeline, in addition to around 75,000 barrels of oil from Kirkuk. In early February, the Iraqi legislature passed an amendment to the federal budget law, increasing compensation to international oil companies (IOCs) operating in the Kurdistan Region. This amendment is seen as key for the resumption of Kurdish oil exports. Additionally, Turkish Deputy Foreign Minister Berris Ekinci held several meetings with the senior Kurdish officials on Tuesday to discuss various topics, including the resumption of Kurdish oil exports through Turkey. The Turkish diplomat lauded the agreement between Erbil and Baghdad on the process of resuming the region's oil exports, "reaffirming Turkey's full support for the process." The Kurdistan Region President Nechirvan Barzani and the top Turkish diplomat were also quoted as 'exchanging views on efforts and steps to resume the export of Kurdistan Region's oil,' read a statement from the Kurdistan Region Presidency.
