Iraq’s Oil Ministry Urges Urgent Talks to Resume Kurdistan Oil Exports

The Oil Ministry’s website

Iraq’s Ministry of Oil building.

The Federal Ministry of Oil has called for an urgent meeting with all relevant parties to resume negotiations concerning the export of oil from the Kurdistan Region. This follows Iraqi Prime Minister Mohammed Shia’ al-Sudani’s assertion that the unauthorised sale of oil constitutes a breach of the rights of the Iraqi people.

In a statement issued on Friday, 4 April 2025, the Ministry responded to claims made by the APICORP Association on 28 March. The association had alleged that the Ministry was unwilling to reach a solution that honours the contracts between APICORP-affiliated companies and the Kurdistan Regional Government (KRG). The Ministry dismissed this as a “false and misleading statement” and expressed regret over its publication.

According to the statement, the Ministry is actively working to implement the recent amendment to the budget law, approved on 2 February 2025, to enable the swift resumption of exports through the Iraq-Türkiye pipeline.

The amendment stipulates that the Federal Ministry of Finance will compensate the KRG for the costs of producing and transporting crude oil delivered to the State Oil Marketing Organisation (SOMO) or the Ministry of Oil. An international consultant will be appointed to calculate the fair estimated costs of production and transportation for each field, which will form the basis for determining payments to the KRG.

Furthermore, the amendment mandates the immediate handover of all oil production in the Kurdistan Region to SOMO and the Federal Ministry of Oil. A temporary compensation mechanism will remain in place until the international consultant completes their assessment.

The Ministry emphasised that the Iraqi government has taken tangible and sincere steps to demonstrate goodwill in the negotiation process and to expedite the resumption of exports via the Iraq-Türkiye pipeline. It reaffirmed its responsibility to act in the national interest, safeguard Iraq’s resources, and pursue legal, long-term solutions.

PM al-Sudani reiterated that the sale of oil through unauthorised channels, outside the oversight of SOMO, undermines the rights of the Iraqi people. He publicly endorsed the recent amendments to the General Budget Law, which were passed through legitimate democratic processes, to promote transparency and responsible management of Iraq’s oil resources. The government, he added, has been actively involved at the highest levels to find an equitable resolution.

The Ministry stated that the main challenge in negotiations lies in the emergence of counterproductive actions—though not by the Iraqi government—each time progress is made. These include unrealistic demands that fall outside the legal framework and disrupt previously agreed arrangements, impeding progress towards a comprehensive settlement.

It stressed that such demands do not contribute to good-faith negotiations. The Ministry underlined the urgency of reaching a mutually agreed resolution to put an end to unlawful oil sales and to protect the wealth of the Iraqi people.

The government remains committed to safeguarding the interests of all parties, including international oil companies, while prioritising the national interest. It also aims to maintain an investment-friendly environment that fosters economic growth and ensures a fair, sustainable outcome for all stakeholders.

The Ministry called for an immediate meeting with the concerned parties to resume discussions under the framework of the amended budget law. The goal is to establish a clear operational mechanism that upholds Iraq’s rights and honours its commitments to investors.

The statement concluded by affirming that the government’s top priority is the prompt, secure, and lawful resumption of oil exports via the pipeline, in accordance with the rule of law and with full protection of national resources against any form of illegal exploitation.



PUKMEDIA