ERBIL, Kurdistan Region - The Kurdistan Regional Government’s (KRG) acting minister of natural resources announced on Monday that oil exports from the Kurdistan Region will resume next month, confirming that there are no technical obstacles to the resumption.
The Iraqi parliament passed a budget amendment in early February that increased the production and transport rates for international oil companies (IOCs) operating in the Kurdistan Region. The rate was set at $16 per barrel, a substantial increase from the $6.90 set in the 2023 federal budget.
The Iraqi President Abdul Latif Rashid on Sunday signed the budget amendment into law, paving the way for its publication in the Official Iraqi Gazette, making it effective.
The KRG’s acting Minister of Natural Resources Kamal Mohammed stated that with Rashid’s signature, “there are no technical issues hindering the export of oil from the Kurdistan Region."
Mohammed also highlighted the economic toll of the suspension of oil exports from the Kurdistan Region, stating that Erbil and Baghdad have lost nearly $1 billion each month for the past 23 months.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were suspended in March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin independent oil exports in 2014.
Before the halt, Erbil exported approximately 400,000 barrels of oil per day through the Iraq-Turkey pipeline, in addition to about 75,000 barrels of Kirkuk oil.
The KRG minister stated that “Iraq has concluded that it has inflicted great damage upon itself and the Kurdistan Region,” and “so the budget amendment was approved.” He explained that, although “legal procedures have been completed,” Ankara’s consent is now needed, as “the oil will be transferred via Turkey,” he said.
The suspension of Kurdish oil exports caused significant economic difficulties in the Kurdistan Region, leading to delays in the payment of civil servant salaries. The unpaid salaries crisis has sparked ongoing protests from public employees.