Al-Sudani points to a historic agreement with the Kurdistan Region: We waited 18 years for it.
Iraqi Prime Minister Mohammed Shia al-Sudani announced Thursday evening that he had reached what he described as a “historic” oil agreement with the Kurdistan Region.
Al-Sudani stated in a post on the “X” platform, followed by Shafaq News Agency, “Today, we reached a historic agreement under which the federal Ministry of Oil will receive crude oil produced from fields located in the Kurdistan Region and export it via the Iraq-Turkey pipeline.”
He considered that “this ensures the equitable distribution of wealth, diversifies export outlets, and encourages investment,” concluding his post by saying, “This is an achievement we have waited 18 years for.”
The Kurdistan Regional Government’s Ministry of Natural Resources, the Iraqi Ministry of Oil, and oil companies signed a tripartite agreement last Monday, paving the way for the resumption of the export of Kurdistan Region oil through the Ceyhan pipeline.
According to sources who spoke to Shafaq News Agency at the time, pumping operations are expected to resume within the next two days, after a forced shutdown that cost Iraq and the Kurdistan Region huge financial losses exceeding billions.
Kurdistan Region’s oil exports were halted on March 25, 2023, following an international arbitration ruling requiring Türkiye not to allow the region’s oil exports without the approval of the federal government in Baghdad.
Since then, shipments of an estimated 450,000 barrels per day have been disrupted, including 400,000 barrels from the Kurdistan Region and 50,000 from the northern Kirkuk fields. This disruption has resulted in daily financial losses exceeding $30 million, according to unofficial estimates.
Observers also believe that the agreement is not limited to the technical aspects related to pumping and export operations, but rather extends to a political understanding between Baghdad and Erbil.
The oil issue is one of the most contentious issues between the two sides, and the new understanding is expected to contribute to strengthening mutual trust and opening the door to addressing other issues, such as the salaries of the region’s employees and Kurdistan’s share of the federal budget.
According to experts, the resumption of the region’s oil exports via the Ceyhan pipeline will contribute to stabilizing Iraqi oil supplies to global markets, particularly European markets, which are increasingly dependent on Iraqi oil following geopolitical tensions in the region.
The agreement will also restore balance to the relationship between the Iraqi Ministry of Oil and the Kurdistan Regional Government’s Ministry of Natural Resources, after years of disputes over field management powers and contracts with foreign companies.
Shafaq.com