SOMO says KRG has yet to deliver oil under new export deal

BAGHDAD — Iraq’s State Oil Marketing Organization said the Kurdistan Regional Government has not delivered any crude oil for export, despite a recent agreement with Baghdad to resume shipments through Turkey.

“The region has not delivered any quantity of its oil so far,” SOMO Director General Alaa Nizar Faeq told the state-run Al-Iraqiya channel. He said SOMO had “completed all contractual procedures for exports through the Ceyhan port in Turkey and is ready to receive any quantities delivered by the region.”

The comments come days after the KRG urged the federal government to release public employee salaries for June and July, saying it had fulfilled all obligations under a mid-July deal. The agreement required the KRG to supply 230,000 barrels of oil per day and remit 120 billion dinars in non-oil revenue in exchange for resumed budget transfers.

The federal government had suspended salary payments and budget allocations in May, accusing the KRG of exceeding its 2025 allocation and failing to submit complete financial data. The KRG rejected the claims, saying it had submitted all payroll records and a jointly audited financial ledger.

Following the July agreement, Baghdad transferred funds for May salaries and began additional transfers through July 27, according to both governments. But SOMO’s announcement has raised questions over whether the oil portion of the deal is being implemented.

Faeq also addressed broader export trends, saying Iraq’s daily crude exports currently range between 3.35 and 3.4 million barrels. He said 78 to 80 percent is shipped to Asia due to growing demand, while less than 20 percent goes to Europe. The remainder is exported to the United States.

He added that SOMO enforces strict sales conditions, requiring buyers to own their own refineries and prohibiting resale of Iraqi crude.