Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani met with Turkiye’s Minister of Treasury and Finance Mehmet Simsek on Wednesday at the World Government Summit in Dubai, where they discussed the necessary measures for the swift resumption of oil exports from the Kurdistan Region.
On March 25, 2023, Kurdish crude oil exports through Turkiye 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.
Read More: KRG PM Hails Iraqi Parliament’s Budget Amendment
Meetings between Ankara, Baghdad, and Erbil to restart the exports did not make any progress until February 2, 2025, when the Iraqi federal parliament made an amendment to the federal budget law.
I met with @memetsimsek about the resumption of Kurdistan Region’s oil exports and securing its place in the Development Road project.
— Masrour Barzani (@masrourbarzani) February 12, 2025
Kurdistan must be fully integrated into regional trade routes to drive economic growth and strengthen connectivity across the region.#WGS25 pic.twitter.com/2bcwwd89wh
This amendment is expected to help to restart the Kurdistan Region’s oil exports by allowing an advance compensation of $16 per barrel for production and transportation costs.
The previous Iraqi budget compensated the KRG with $7.9 per barrel for transport and production costs, which was seen as too low by the KRG.
Read More: PM Barzani Stresses Kurdistan’s Inclusion in Development Road Project
Additionally, both sides discussed the significance of implementing the Development Road Project, which aims to establish a railway connection between the Gulf states, Iraq, the Kurdistan Region, Turkiye, and Europe.
“They agreed on the importance of the Kurdistan Region’s active participation in this strategic initiative,” the KRG readout said.
