Iraq-Türkiye oil deal: Restart of exports imminent

Iraq, the second-largest oil producer in the Organization of the Petroleum Exporting Countries (OPEC), has announced that it is close to finalizing an agreement with the Kurdish Regional Government of Iraq and international oil companies to restart oil exports.

“We are making progress in these negotiations, and we hope to reach a final understanding on this matter in the coming days,” said Iraq’s Oil Minister Hayyan Abdul Ghani in a televised interview on Sunday on the state-run Iraqiya channel.

Abdul Ghani stated that the Iraqi Oil Ministry, Kurdistan’s Ministry of Natural Resources, and international oil companies met on Sunday in Baghdad to discuss the resumption of production and exports. He added that the revenue would be deposited into an account at the Iraqi central bank.

Oil exports from northern Iraq have been halted for more than a year since March 2023 due to a dispute over whether Erbil or Baghdad should grant permission.

This decision follows a dispute between Türkiye and Iraq over oil in March 2023. The ICC ruled in favor of Iraq.

Months of tense negotiations between Iraq and Türkiye and Baghdad and Erbil followed. The disputes are giving way to a new process of cooperation.