Prime minister says talks with Kurdistan Region oil companies aim to restart oil exports

BAGHDAD — Prime Minister Mohammed Shia Al-Sudani said negotiations with international oil companies in the Kurdistan Region are underway to fix ‘technical issues’ that have halted oil exports.

Speaking with Turkish Minister of Energy and Natural Resources Alparslan Bayraktar in Baghdad, Al-Sudani reaffirmed Iraq’s commitment to resume exports and stabilize its energy sector. “The Iraqi government is working extensively to ensure the resumption of oil exports,” he said.

The meeting also covered broader energy cooperation between Iraq and Turkey, including refinery projects, petrochemicals, and electricity imports. Bayraktar noted Turkey’s support for restarting exports via the Ceyhan port while strengthening economic ties.

Iraq has struggled to overcome an export impasse that began in March 2023 when an arbitration ruling halted shipments on the Iraq-Turkey Pipeline—once moving 450,000 barrels per day—and cost the country an estimated $20 billion in revenue.

Talks have intensified in recent months. On March 6, 2025, Iraq’s Ministry of Oil hosted discussions in Baghdad with international companies and officials from the KRG’s Ministry of Natural Resources. However, APIKUR—the association representing companies in the Kurdistan Region—has insisted on receiving formal payment guarantees before resuming exports.

At Khor Al-Zubair port, Oil Minister Hayyan Abdul Ghani said on Feb. 28 that exports through Turkey’s Ceyhan port might resume “within the next hours” at 185,000 barrels per day, gradually increasing over time. APIKUR, however, rejected any immediate restart without binding payment agreements for past and future exports, stating, “APIKUR member companies do not have agreements that would lead to resuming oil exports today.”

Earlier, an agreement between Baghdad and Erbil announced on Feb. 23 aimed to restart exports “based on available capacity” with a joint technical team inspecting pipelines. Still, APIKUR maintains that financial guarantees must be secured first.

Amendments to the federal budget, passed on Feb. 2, 2025, include Article 12, allocating $16 per barrel to cover production and transportation costs for foreign companies in the Kurdistan Region. While APIKUR welcomed the amendment, it continues to demand contractual protections and transparent payment mechanisms before exports can restart.