ERBIL, Kurdistan Region - Iraq’s Prime Minister Mohammed Shia’ al-Sudani said on Wednesday that Baghdad wants to open a “new page” with the international oil companies operating in the Kurdistan Region as the two-year suspension of Erbil’s oil exports appears to come to an end soon.
The Iraqi government and the Kurdistan Regional Government (KRG) on Sunday struck an agreement with Baghdad to restart the Kurdistan Region's long-anticipated oil exports after the Iraqi government confirmed the completion of procedures. This came after the federal parliament approved an amendment to the budget law, increasing the fee of oil companies operating in the Kurdish region.
“After passing the amendment to the budget law, we now look forward to completing the procedures for exporting crude oil to the port of Ceyhan and opening a new page with companies operating in the region, which contributes to building the Iraqi economy and doing justice to citizens in the Kurdistan region by ensuring they receive all their rights in terms of salaries and entitlements,” Sudani said in a video message directed to Erbil Forum in Erbil on Wednesday.
The three-day event is organized by Rudaw Media Network.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline were suspended in March 2023 after a Paris-based arbitration court ruled in favor of Baghdad against Ankara, saying the latter had violated a 1973 pipeline agreement by allowing Erbil to begin independent oil exports in 2014.
Before the suspension, Erbil was exporting approximately 400,000 barrels of oil per day via the Iraq-Turkey pipeline, in addition to around 75,000 barrels of oil from Kirkuk.
Sudani also said that his cabinet has “worked to find sustainable solutions to what were called the outstanding issues between Baghdad and Erbil, and we have transformed them into future opportunities for cooperation and integration,” noting that they have “managed to remove these issues from their political framework to their legal context.”
Sudani emphasized Iraq's commitment to expanding economic partnerships and leveraging international expertise to strengthen the national economy.
"Iraq's openness at both regional and international levels is part of our ongoing approach," he stated, highlighting that cooperation is not confined to any single entity but extends to all global partners.
As part of this strategy, Sudani underscored the importance of the Development Road project, designed to serve as an economic, cultural, and social bridge linking Asia to Europe, facilitating trade and sustainable development.
The Development Road project is being advertised as something that will reshape Iraq’s economy, but it has been a source of friction between Baghdad and the KRG, which has been unhappy that no Kurdistan Region highways or rail links are included in the main corridor and is worried it will not benefit economically.
The project has Erbil’s “complete support,” Kurdistan Region President Nechirvan Barzani said in Baghdad on Saturday, despite objections that it bypasses the Kurdistan Region.
Sudani also touched on the developments in the Middle East, saying the region is going through “major transformations unlike any we have witnessed in decades.”
He added that Gaza and Lebanon, which have been devastated by Israel’s war with pro-Iran armed groups, “have experienced a harsh war waged by the occupation forces of the usurping entity, targeting all aspects of life.”
Iraq has been a staunch supporter of Gaza and Lebanon but has tried to avoid being dragged into the conflict.
“We have worked hard to spare Iraq from the fire of this war, in addition to being keen to support our brothers in Lebanon and Palestine with aid and advocacy in all forums we attended, calling for the necessity of ending the war,” Sudani said.
He noted that Iraq also is in favor of restoring security and stability in neighboring Syria, adding that they believe in the “unity of destiny and the necessity of strengthening Arab and regional solidarity.”
