Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani has said that the suspension of oil exports through Turkey has caused over 25 billion dollars in losses to both the KRG and the federal government of Iraq.
Speaking at a press conference following a cabinet meeting today, Barzani noted that the federal government has yet to provide any compensation to the people of Kurdistan.”
“In order for exports to resume, agreements must be reached with all sides, especially the companies involved,” he remarked.
Oil exports through the Kirkuk-Ceyhan pipeline were halted on Mar 25, 2023, following a ruling by the International Chamber of Commerce (ICC) in Paris. The court found that Turkey had breached a 1973 pipeline agreement by allowing the KRG to export oil independently of Baghdad’s State Oil Marketing Organization (SOMO).
Prior to the suspension, the pipeline was transporting around 450,000 barrels of oil per day. The halt has had significant economic consequences, including delays in public sector salary payments in the KRG and reduced national revenue for Iraq.
Efforts to resolve the dispute are ongoing. In early 2025, Iraq’s parliament approved a budget amendment that set oil transport and production costs in Kurdistan at $16 per barrel and required the KRG to hand over its crude output to SOMO. However, a full resumption of exports has yet to be achieved due to ongoing technical and political negotiations involving Baghdad, Erbil, and Ankara. (TY/VK)
