Iraq optimistic about resuming Kurdish oil exports

Iraq is hoping for an agreement to resume oil exports to Turkey, which have been halted for a month due to an old legal dispute. Kurdistan's oil sales must now go through the Iraqi State Oil Company, and revenues from Kurdish exports are supervised by Baghdad.

Share:

Comprehensive energy news coverage, updated nonstop

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access • Archives included • Professional invoice

OTHER ACCESS OPTIONS

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

FREE ACCOUNT

3 articles offered per month

FREE

*Prices are excluding VAT, which may vary depending on your location or professional status

Since 2021: 35,000 articles • 150+ analyses per week

The Iraqi oil minister hoped on Wednesday to reach an agreement soon allowing the resumption of crude oil exports to Turkey from the autonomous region of Kurdistan, interrupted for more than a month due to an old legal dispute.

Iraq had filed an arbitration case against neighboring Turkey at the International Chamber of Commerce in Paris in 2014, as Ankara had long imported oil from the autonomous region of Iraqi Kurdistan without the approval of federal authorities in Baghdad.

But this year the arbitration tribunal finally gave its verdict, giving reason to the Iraqi government and obliging Turkey to pay compensation to the Iraqi state. In the wake of this, Ankara had suspended imports from Iraqi Kurdistan. In early April, however, Baghdad and the local authorities of Iraqi Kurdistan signed a “temporary” agreement settling certain points of contention and agreeing on an export mechanism that would be supervised by the federal government, even though certain questions remain unresolved.

“Regarding the agreement with Iraqi Kurdistan, within a week or two maximum we will reach a final agreement for the resumption of crude exports,” hoped Wednesday the Minister of Oil Hayan Abdel Ghani, assuring that the “indicators were positive. Speaking at a conference of the “Iraq Forum”, organized by Iraqi think tanks and research institutes, he mentioned in particular “tests conducted on the Turkish side of the pipelines”, to avoid potential oil leaks, after the deadly and devastating earthquake that hit Turkey in February.

Under the terms of the agreement announced in early April, oil sales from Kurdistan must now go through the Iraqi State Oil Company (Somo), not exclusively through local Kurdish authorities. In addition, the revenues from Kurdish exports will be paid into an account managed by the local authorities in Kurdistan and supervised by Baghdad.

Kurdistan has long exported some 450,000 barrels per day (bpd) to Turkey, paying Ankara much higher transit fees than necessary, in defiance of federal government opposition. Oil is the cornucopia of both Baghdad and Iraqi Kurdistan. Iraq is the second largest country in the Opec and exports an average of 3.3 million barrels of crude oil per day. And gross income accounts for 90% of its revenue.

Lukoil has started divesting its foreign assets following new US oil sanctions, a move that could reshape its overseas presence and impact supply in key European markets.
Kazakhstan is reviewing Lukoil's stakes in major oil projects after the Russian group announced plans to divest its international assets following new US sanctions.
The Mexican state-owned company reduced its crude extraction by 6.7% while boosting its refining activity by 4.8%, and narrowed its financial losses compared to the previous year.
The new US licence granted to Chevron significantly alters financial flows between Venezuela and the United States, affecting the local currency, oil revenues and the country's economic balance.
Three Crown Petroleum reports a steady initial flow rate of 752 barrels of oil equivalent per day from its Irvine 1NH well in the Powder River Basin, marking a key step in its horizontal drilling programme in the Niobrara.
Cenovus Energy adjusts its MEG Energy acquisition offer to $30 per share and signs a voting support agreement with Strathcona Resources, while selling assets worth up to CAD150mn.
Iraq is negotiating a potential revision of its OPEC production limit while maintaining exports at around 3.6 million barrels per day despite significantly higher capacity.
Le Premier ministre hongrois se rendra à Washington pour discuter avec Donald Trump des sanctions américaines contre le pétrole russe, dans un contexte de guerre en Ukraine et de dépendance persistante de la Hongrie aux hydrocarbures russes.
Nigerian tycoon Aliko Dangote plans to expand his refinery’s capacity to 1.4 million barrels per day, reshaping regional energy dynamics through an unmatched private-sector project in Africa.
COOEC has signed a $4bn EPC contract with QatarEnergy to develop the offshore Bul Hanine oil field, marking the largest order ever secured by a Chinese company in the Gulf.
The group terminates commitments for the Odin and Hild rigs in Mexico, initially scheduled through November 2025 and March 2026, due to sanctions affecting an involved counterparty, while reaffirming compliance with applicable international frameworks.
Shell has filed an appeal against the cancellation of its environmental authorisation for Block 5/6/7 off the South African coast, aiming to continue exploration in a geologically strategic offshore zone.
The Greek government has selected a consortium led by Chevron to explore hydrocarbons in four maritime zones in the Ionian Sea and south of Crete, with geophysical surveys scheduled to begin in 2026.
Algerian company Sonatrach has resumed exploration activities in Libya's Ghadames Basin, halted since 2014, as part of a strategic revival of the country's oil sector.
The Indian refiner segments campaigns, strengthens documentary traceability and adjusts contracts to secure certified shipments to the European Union, while redirecting ineligible volumes to Africa and the Americas based on market conditions.
US authorities have authorised a unit at Talen Energy’s Wagner plant in Maryland to operate beyond regulatory limits until the end of 2025 to strengthen grid reliability.
Gran Tierra Energy has signed a crude oil sale agreement with a $200mn prepayment and amended its Colombian credit facility to improve financial flexibility.
Operations at BP’s 440,000 barrel-per-day Whiting refinery have resumed following a temporary shutdown caused by a power outage and a minor fire incident.
The European Union targets a trading subsidiary and a refinery linked to China National Petroleum Corporation, tightening access to financial and insurance services without disrupting pipeline deliveries, with reallocations expected in settlements, insurance, and logistics. —
Viktor Orban says he is working to bypass recent US sanctions targeting Rosneft and Lukoil, underscoring Hungary’s continued reliance on Russian hydrocarbons.

All the latest energy news, all the time

Annual subscription

8.25$/month*

*billed annually at 99$/year for the first year then 149,00$/year ​

Unlimited access - Archives included - Pro invoice

Monthly subscription

Unlimited access • Archives included

5.2$/month*
then 14.90$ per month thereafter

*Prices shown are exclusive of VAT, which may vary according to your location or professional status.

Since 2021: 30,000 articles - +150 analyses/week.