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Iraqi Parliament Deputy Speaker Shahwan Abdullah announced that an agreement has been reached with Turkish companies to restart oil exports from northern Iraq, which were halted two years ago.
The announcement marks a potential breakthrough in resolving a dispute that has cost the Kurdish region billions of dollars and strained relations between Erbil and Baghdad since exports were suspended in March 2023.
Abdullah told journalists that Iraq's State Organization for Marketing of Oil (SOMO) has reached an agreement with Türkiye to resume northern Iraq oil exports through Türkiye's Ceyhan port. He said the Kurdish regional government and Iraq's central government have also reached terms on oil and non-oil revenues.
"The only thing left is for the Iraqi government to remain legally and morally committed to these agreements," Abdullah said. "The central government should begin paying the salaries of public employees in the northern Iraq for July and August in the coming days."
The developments follow statements from northern Iraq Prime Minister Masrour Barzani, who said Tuesday that a preliminary agreement had been reached between oil companies operating in the region and Iraq's central government regarding crude oil extraction costs. Barzani indicated that preparations were underway for a final agreement to resume exports through Ceyhan.
A trilateral meeting between the northern Iraq, Iraq's central government and oil companies is scheduled for today at the Iraqi Oil Ministry building. The meeting is expected to resolve remaining disagreements and remove obstacles in the process.
Oil flows from Iraq to Türkiye's Ceyhan port were suspended on March 25, 2023, following an international arbitration court ruling on oil exports between Türkiye and Iraq. Barzani has previously stated that the suspension caused the northern Iraqto lose $25 billion, adding that the halt has also damaged Iraq's government finances. The potential resumption would restore a key revenue stream for the region, which has struggled with budget shortfalls and delayed salary payments since the suspension began.
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