Iraq’s oil minister says talks with KRG ongoing over stalled pipeline exports

SULAYMANIYAH — Iraq’s Oil Minister Hayyan Abdul Ghani said Wednesday that negotiations between Baghdad and the Kurdistan Regional Government are continuing over the stalled export of Kurdish oil through the Iraq-Turkey pipeline.

Speaking at the ninth Sulaimani Forum, Ghani said the issue is outlined in the federal budget law and has been the subject of ongoing talks for more than a year and a half.

“There has been continuous communication for more than a year and a half with our brothers in the region to resume the export of the region’s oil via the Iraq-Turkey oil pipeline,” Ghani said.

Exports through the pipeline have been suspended since March 2023, after an international arbitration ruling found that Turkey had violated a 1973 agreement by allowing Kurdish oil shipments without Baghdad’s approval between 2014 and 2018.

Ghani said multiple rounds of discussions have taken place with the KRG’s Ministry of Natural Resources.

“There is a strong need for this oil, both to increase Iraq’s revenue sources and to support the federal budget,” he said.

He also addressed pricing and contractual disputes, noting that the federal budget law set the cost of a production barrel at $6 to $7 — a figure he said does not align with the terms of KRG’s agreements with oil companies.

“This amount is not sufficient for the contracts signed between the KRG and the oil companies,” he said.

In November 2024, Iraq’s parliament approved a proposal to compensate for production and transportation costs of oil extracted in the Kurdistan Region. While a final rate has not been confirmed, Baghdad proposed an advance payment of $16 per barrel. The directive also required KRG crude to be delivered to the State Oil Marketing Organization, or SOMO, under the authority of the Ministry of Oil.

Ghani said production costs vary across Iraq and acknowledged that some federal fields are more expensive to operate.

“We [in Iraq] also have oilfields that cost for oil production exceeds $20 per barrel,” he said.

He also announced plans to invite U.S. oil giants to expand operations in Iraq.

Ghani said Iraq will extend exclusive invitations to companies including ExxonMobil and Chevron to invest in the country’s energy sector.

He added that a delegation from the KRG’s Ministry of Natural Resources is scheduled to visit Baghdad on Saturday for further negotiations.