The Kurdistan Regional Government (KRG) Council of Ministers announced Wednesday it will compensate international oil companies for oil produced for domestic use.

Furthermore, the KRG said that oil designated for export will be delivered to the Iraqi State Organization for Marketing of Oil (SOMO) for shipment through the Turkish port of Ceyhan.

On March 25, 2023, Kurdish crude oil exports through Turkey were stopped after an international arbitration court ruled in favor of Baghdad against Ankara, halting 450,000 barrels per day of crude oil exports to international markets.

Last Friday, salary distributions for the month of May were delivered, after a deal was reached between Erbil and Baghdad for the KRG to share non-oil revenues with Baghdad, and ship the oil produced in the Kurdistan Region to SOMO for export.

On July 25, the KRG Council of Ministers announced that the KRG Ministry of Natural Resources, through a joint committee, had provided full cooperation to the Federal Ministry of Oil and SOMO, granting access to information and direct oversight of all oil fields in the Kurdistan Region.

Furthermore, Baghdad and Erbil agreed to resume oil exports through SOMO for the volume of oil currently produced in the Kurdistan Region, which had been disrupted due to recent drone attacks on oil fields.