Iraqi Oil Minister Hayyan Abdul-Ghani recently announced that the federal government in Baghdad and the Iraqi Kurdistan Autonomous Government were nearing an agreement to resume oil exports. This comes after a halt in oil exports from Kurdistan through the Turkish port of Ceyhan in 2023, due to a ruling by the International Chamber of Commerce in Paris that Turkey was violating the terms of a 1973 treaty by transiting Kurdish oil without Baghdad’s consent.
Following the stoppage of oil exports from Kurdistan, negotiations began between Erbil and Baghdad regarding the distribution of profits from oil exports. It is important to mention that Kurdistan was a supplier of oil to Israel during this time. In November 2023, Abdul-Ghani had previously made a similar statement about reaching an agreement, but ultimately the parties failed to come to a resolution.
Despite previous setbacks, the recent announcement from Abdul-Ghani suggests that progress is being made towards a new agreement on oil exports between Baghdad and the Iraqi Kurdistan Autonomous Government. This potential agreement could have significant implications for the oil industry in the region and the distribution of profits from oil exports between the two governments. The resumption of oil exports from Kurdistan would not only benefit both parties involved but also have wider implications for the global oil market.