Iraq: Agreement Reached with Turkish Companies for Oil Exports

Abdullah stated that Iraq’s State Oil Marketing Organization (SOMO) has reached an agreement with Turkey to restart oil exports from the KRG. Speaking to reporters, he noted that the KRG and the central Iraqi government have come to terms regarding oil and non-oil revenues. He added that SOMO has also reached an understanding with Turkish companies, paving the way for the resumption of oil exports via Turkey’s Ceyhan Port. “The only remaining issue is for the Iraqi government to uphold these agreements both legally and ethically,” Abdullah said. He also emphasized that the central government should begin paying the salaries of public employees in the KRG for July and August in the coming days.

Barzani: Preparations Made for Final Agreement

KRG Prime Minister Masrour Barzani stated on Friday that a preliminary agreement has been reached between oil companies operating in the region and the central Iraqi government regarding crude oil extraction costs. He added that preparations are underway for a final agreement to resume exports through Ceyhan Port.

Tripartite Meeting Scheduled

Meanwhile, a tripartite meeting is scheduled today between the KRG, the central Iraqi government, and oil companies to discuss the resumption of exports via Ceyhan Port. The meeting, to be held at the Iraqi Ministry of Oil, is expected to resolve disagreements and remove obstacles in the process.

Oil Flow from Iraq to Turkey’s Ceyhan Port Had Been Halted

Following a ruling by the International Arbitration Court regarding oil exports between Turkey and Iraq, the flow of oil from Iraq to Turkey’s Ceyhan Port was halted on March 25, 2023. Prime Minister Barzani previously stated that the suspension of oil exports to Turkey in 2023 resulted in a $25 billion loss for the KRG, which also negatively impacted the Iraqi government.