In a positive development for the oil industry, a delegation from the Kurdistan Region and the Iraqi Oil Ministry met with oil-buying companies of the Kurdistan Region in Baghdad on Monday (April 3, 2023).

The Kurdistan Regional Government's representative in Baghdad, Fares Isa, announced that "the Kurdistan Region delegation and the Ministry of Oil are meeting with the oil-buying companies of the Kurdistan Region." Isa further added that the delegation from the Kurdistan Region and the State Oil Marketing Organization (SOMO) are expected to meet with oil-buying companies of the Kurdistan Region after the initial meeting.

The Iraqi Oil Ministry had expressed its keenness to resume oil exports for the Kurdistan Region through the Jihan border crossing with Turkey and to work towards reaching an agreement in the public interest.

The ministry hoped to reach an agreement soon and confirmed that it had taken the necessary steps to move forward towards the goal of resuming oil exports. The ministry also confirmed its awareness of the importance of revenue generated from the resumption of oil exports in supporting the federal budget.

The National Oil Company (SOMO) had earlier announced that it had reached an agreement with the Kurdistan Region on many points and would soon announce the agreement.

According to information obtained, the Kurdistan Region is expected to sell 550,000 barrels of oil per day through the Jihan crossing, while SOMO will buy 250,000 barrels of that amount.

The spokesperson for the Iraqi government, Bassam Al-Awadi, had previously stated that the atmosphere of meetings between the Kurdistan Regional Government and the Oil Ministry was positive.

The positive outcome of these meetings could potentially bring much-needed revenue to the Kurdistan Region and provide a boost to Iraq's economy as a whole.