The Kurdistan Region is set to resume oil exports by early March after significant progress in discussions with Baghdad and Turkey, as announced by Kamal Mohammed Salih, the Acting Minister of Natural Resources. The region is now technically prepared for the resumption, following amendments to Iraq’s budget law and ongoing talks with Baghdad.

In an interview with Kurdistan 24, Salih confirmed that a delegation from Iraq’s Oil Ministry would arrive in Erbil on Monday evening, with meetings scheduled for Tuesday to finalize the preparations for re-exporting Kurdistan’s oil. He emphasized that President Latif Rashid has approved the amendment to the Iraqi budget law, which will soon be published in the official gazette.

“There are no obstacles to the export of oil, and we are technically ready,” Salih stated. He also pointed out that while there has been notable progress between the Kurdistan Regional Government (KRG) and Baghdad, Turkey remains a critical party in the process.

“There is a third party involved in Kurdistan’s oil exports, which is Turkey. We must reach an agreement with them for this purpose,” Salih added.

The expected resumption of oil exports follows the Iraqi parliament’s approval of amendments to the federal budget law on February 2, specifically Article 12. This amendment outlines the mechanisms for Kurdistan’s oil exports, including provisions for the federal government to compensate the KRG for production and transportation costs incurred for oil received by the state-run Oil Marketing Company (SOMO).

Furthermore, the law mandates the appointment of an international technical advisory body within 60 days to assess production and transportation costs, and the KRG is required to deliver its oil to SOMO or Iraq’s Oil Ministry under the revised terms.

Oil exports from the Kurdistan Region have been halted since March 2023 following a ruling by the Paris-based International Chamber of Commerce (ICC), which deemed Turkey’s handling of Kurdistan’s independent oil sales a violation of a 1973 pipeline agreement with Iraq. Since that ruling, Baghdad and Erbil have been in negotiations to resolve the issue and restart oil exports.