Oil Firms Agree Deal With Iraq to Resume Kurdistan Exports

Core Points - Oil companies in Iraq's Kurdistan have reached agreements to resume oil exports that have been halted for over two years, facilitating supply into a potentially oversupplied market [1][2] - The resumption of exports is expected to bring approximately 230,000 barrels per day to international markets, significantly lower than the nearly 500,000 barrels per day prior to the pipeline's closure [5][6] - The agreement includes provisions for ensuring payment to the companies and establishing a mechanism for settling outstanding debts within 30 days of resuming exports [4][6] Industry Context - The Kurdistan regional government has signed agreements with eight companies, which account for over 90% of the region's oil production, and is awaiting the federal oil ministry's signature to finalize the deal [2][6] - The pipeline closure, initiated by Turkey in March 2023 due to an arbitration court's decision, has resulted in significant revenue losses for Iraq, which is OPEC's second-largest oil producer [3][6] - The resolution of disputes over oil revenue control between Iraq and the Kurdistan region has led to agreements that allow the regional government to hand over oil to SOMO for sales, enabling the federal government to release funds for regional salaries [7]