Prime Minister Mohammed Shia' Al-Sudani has warned that the ongoing halt of oil exports from the Kurdistan Region is detrimental to Iraq as a whole. In a statement reported by Turkey's Anadolu Agency, Al-Sudani emphasized that the revenue generated from these exports could be pivotal in fostering development within Kurdistan's provinces and boosting the national economy.

The Prime Minister highlighted that the federal government is actively pursuing solutions to resume oil exports from Kurdistan. "We have taken initiatives to find the appropriate solution to resume the export of Kurdistan's oil," he stated, though he noted that legal commitments complicate the issue.

This development comes as the Federal Ministry of Oil has called for an urgent meeting with the Kurdistan Region's Ministry of Natural Resources and the oil companies operating there. The aim is to expedite the resumption of oil production and its export through the Turkish port of Ceyhan.

Al-Sudani stressed that resolving the Kurdistan oil issue must be beneficial for all Iraqis, reflecting a nationwide interest in a swift resolution.

Oil exports from the Kurdistan Region and Kirkuk province to Turkey have been suspended since March 25, 2023. This suspension followed a ruling by the International Arbitration Court in Paris, which declared the exports illegal. The ruling was the result of a lawsuit filed by the federal government against Turkey in 2014 over its unilateral handling of Kurdistan's oil exports without Baghdad's consent.

Under a 2010 agreement between Baghdad and Ankara, the Iraqi Oil Marketing Company (SOMO) is the sole entity authorized to export and market Iraqi oil globally.

Previously, the Kurdistan Region exported 450,000 barrels of oil per day to Turkey, which was crucial for funding public sector salaries and generating regional revenue. The lack of a comprehensive oil and gas law to regulate the country's oil wealth has exacerbated the situation.

On April 4, 2023, Erbil and Baghdad reached a temporary agreement pending the Iraqi parliament's passage of an oil and gas law. This agreement mandates that the Kurdistan government delivers 400,000 barrels of oil per day to SOMO. Additionally, it calls for the formation of a joint committee to oversee oil sales, the opening of an independent account at the central bank for revenue deposits, and the appointment of a Kurdistan representative as an assistant director general of SOMO.