Kurdistan Oil Operators Strike Export Resumption Deal With Baghdad

September 25, 2025

Eight oil companies operating fields in the northern Iraqi region of Kurdistan have reached an agreement with the Iraqi central government and the Kurdistan Regional Government that would enable the restart of exports from the region.

“This framework, once signed and implemented, should allow exports to restart in the coming days, while providing a path toward longer-term arrangements,” the association of oil producers in Kurdistan said.

The companies involved in the agreement represent 90% of oil production in the northern Iraqi region, the New Arab reported, noting two companies have not signed off on the deal yet.

Kurdistan exported around 400,000 barrels daily of crude until the spring of 2023, when flows along the pipeline to Turkey were suspended amid a dispute between the governments in Baghdad and Ankara.

The dispute took close to three years to resolve, but then the Iraqi government had to strike a deal with the semi-autonomous Kurdistan Regional Government.

The KRG, for its part, had to provide assurances to oil field operators that they would receive the money the government owes them in unpaid royalties.

Norwegian DNO and British Genel Energy have refused to sign any deal until the Kurdistan Regional Government provides guarantees that they will receive the money it owes them.

The total in arrears that the KRG owes local oilfield operators comes in at some $1 billion, of which $300 million is payable to DNO.

The regional government and the oil field operators will meet a month after the restart of exports to discuss the mechanism of the payment settlements.

The suspension of oil flows in 2023 has cost Iraq and Kurdistan some $26 billion in losses, the KRG’s head of foreign relations told media earlier this month. When restarted, exports would be flowing at lower rates, at some 230,000 barrels daily.

Oilprice.com