Breakthrough in Kurdish-Iraqi Oil Export Talks: Resumption of Crucial Shipments Could Shape Global Markets

Iraqi Oil Minister Hayyan Abdul-Ghani recently announced that the federal government in Baghdad and the Iraqi Kurdistan Autonomous Government were close to reaching an agreement to resume oil exports. This news 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 this setback, negotiations began between Erbil and Baghdad regarding the distribution of profits from oil exports. It is important to note 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 failures, 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.