Eight international oil companies (IOCs) operating in the Kurdistan Region, representing 90% of the Kurdistan Region’s oil production, announced on Wednesday that they had reached interim agreements with Baghdad and Erbil to resume exports via the Iraq-Turkey Pipeline (ITP).

“The exporting companies recognize the leadership of Prime Minister Mohammed Shia’ al-Sudani of Iraq and his office, whose commitment was essential to reaching this milestone with the interim agreements expected to be signed and ratified in the upcoming days,” the companies said in a statement.

“We would also like to thank Prime Minister Masrour Barzani of the Kurdistan Region for his unwavering support towards this resolution and our international partners for advancing a mutually satisfactory solution that benefits Iraq, the Kurdistan Region and global energy markets.”

The oil companies said that this framework, once signed and implemented, should allow exports to restart in the coming days, while providing a path toward longer-term arrangements.

“The interim agreements are in compliance with Iraq’s 2023-2025 Budget Law and should then be updated following the completion of an independent consultant’s review. The agreed framework maintains the sanctity of existing contracts and provides surety of payment to IOCs,” the IOCs said.

The Kurdistan Regional Government (KRG) and IOCs also agreed to meet within 30 days of resuming exports to work toward creating a mechanism for settling the outstanding debts owed to IOCs of resuming exports.

“We are confident and optimistic that a win-win solution has been found and once fully signed by all relevant stakeholders, crude oil exports from the Kurdistan Region of Iraq will soon resume through the ITP,” said HKN Energy CEO Russell Freeman.

Read More: KRG, Baghdad Agree on Oil Export Mechanism

However, DNO and Genel Energy said they have not yet reached an agreement on the resumption of oil exports.

On Tuesday, the Norwegian oil company DNO said it is “eager to resume exports but pursuant to agreements that ensure payment surety for both past arrears and future exports based on the legal, economic and commercial terms of the production sharing contracts the Company holds with Kurdistan.”

Additionally, Genel Energy said on Tuesday that they welcome “the significant progress made to date by all parties in seeking to resume exports from Kurdistan and [believe] that straightforward adjustments to currently proposed terms, and a payment plan for overdue receivables, would make the conditions for exports acceptable to the Company.

Furthermore, the Iraqi State Oil Marketing Organization on Tuesday announced the conclusion of an agreement on exporting oil from the Kurdistan Region between Baghdad and Erbil.

Read More: Oil Companies Renew Call to Resume Oil Exports

In a statement on Tuesday, the KRG Ministry of Natural Resources said that “all domestic and foreign companies, except one foreign entity yet to formalise its commitment, have signed the agreement. This exception does not impact the trilateral agreement among our Ministry, the participating companies, and the Federal Ministry of Oil.”

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, despite several negotiations by the Iraqi government, the KRG and oil companies to find a solution to resume the oil exports.