Official Iraqi media sources revealed progress in negotiations between the Iraqi federal government and the Kurdistan Regional Government on the oil export file.

There is tangible progress in the ongoing talks between the two parties, the Iraqi Oil Minister, Hayyan Abdul-Ghani, confirms, pointing out that Iraq is seeking to open new export channels to pump Iraqi oil to global markets.

Iraq was exporting 400,000 barrels per day of oil from the Kurdistan region through the Turkish port of Ceyhan before it stopped, the minister states, stressing the continuation of talks with the Turkish side to resume export operations through this port.

The Iraqi government had previously called for an urgent meeting that included international companies and the Ministry of Natural Resources in the Kurdistan region in order to reach an agreement that accelerates the pace of production and restores the flow of exports.

The roots of the dispute between Baghdad and Erbil over the oil file go back to February 2022, when the Federal Supreme Court ruled that the oil and gas law in the Kurdistan region was unconstitutional, affirming the right of the Iraqi Oil Ministry as the sole body responsible for managing all oil operations in the country.

This was followed by important decisions that affected the crisis. The American company Schlumberger, the giant in the field of oil field services, froze its activity in the Kurdistan region in late June 2022, followed by a similar step by Baker Hughes in the implementation of the Federal Court’s decision.

The withdrawal of international companies followed an official letter from the Iraqi National Oil Company on June 12, 2022, in which it demanded that companies operating in the region comply with the court’s decision regarding oil produced there.

Despite the efforts made, both the federal government and officials in the Kurdistan Region failed to reach a final agreement in March 2023 to resume pumping oil from the region, which led to the cessation of black gold flows through the pipeline extending from northern Iraq to the Turkish port of Ceyhan.

The Iraqi government’s position in this case is reinforced by a ruling in its favor issued by the International Chamber of Commerce in its dispute with Turkey over the transit of Kurdistan’s oil through its territory. The court ruled that Turkey must refrain from allowing the export of Kurdish oil from the port of Ceyhan without Baghdad’s approvaland obligated Ankara to pay compensation to Iraq worth $1.5 billion.

The progress achieved in the talks between Baghdad and Erbil indicates the possibility of an imminent breakthrough in the Kurdistan region’s oil export crisis, and diligent diplomatic efforts are being made by both sides to resume the flow of oil. This contributes to strengthening the Iraqi economy and achieving stability in the region.