Several international oil companies (IOCs) on Thursday and Friday welcomed the breakthrough agreement between Baghdad and Erbil and added that they expect that this will result in the resumption of oil exports through the Iraq-Turkey Pipeline (ITP) in the next few days.
The independent Kurdish oil export of 450,000 barrels per day of crude oil exports to international markets was halted by an international arbitration court that ruled in favor of Baghdad against Ankara in March 2023.
Read More: Kurdistan’s Oil Exports Set to Re-enter the Global Market
The Association of the Petroleum Industry of Kurdistan (APIKUR), which represents the majority of the IOCs in the Kurdistan Region, on Thursday praised the leadership of Iraqi Prime Minister Mohammed Shia’ al-Sudani and Kurdistan Regional Government (KRG) Prime Minister Masrour Barzani for their commitment to resume oil exports through the ITP.
APIKUR welcomes the interim tripartite and lifting agreements that enable participating IOCs to resume oil exports through the ITP. @apikur_oil hails the leadership of Prime Minister Mohammed Shia’ al-Sudani of Iraq and Prime Minister Masrour Barzani of the Kurdistan Region,…
— APIKUR (@apikur_oil) September 25, 2025
“The interim agreements allow exports to restart in the coming days, while providing a path toward longer-term arrangements. We anticipate exports will resume within a few days,” APIKUR said.
The Canadian oil company ShaMaran in a statement on Friday welcomed the resumption of oil exports. “Pipeline exports are critical for the future stability and prosperity of both the Kurdistan Region and federal Iraq. We believe these agreements will benefit all Iraqis and allow IOCs to continue investing in the region while receiving the contractual value of the oil produced.”
The company said that for an initial three-month period, IOCs will receive $16 per barrel for production and transport, similar to current local sales, with full production sharing contract entitlements reconciled after an invoice review. The State Organization for Marketing of Oil (SOMO) will sell Kurdistan Region crude at the Kirkuk blend price, and IOCs will be paid in arrears via their nominated trader at Ceyhan. The agreements also involve continuing talks on recovering past outstanding receivables.
APIKUR welcomes the interim tripartite and lifting agreements that enable participating IOCs to resume oil exports through the ITP. @apikur_oil hails the leadership of Prime Minister Mohammed Shia’ al-Sudani of Iraq and Prime Minister Masrour Barzani of the Kurdistan Region,…
— APIKUR (@apikur_oil) September 25, 2025
Jon Harris, CEO of the UK-listed Gulf Keystone Petroleum, stated that “the restart of Kurdistan crude exports via the ITP is a historic milestone for Gulf Keystone, Kurdistan, and Iraq that is expected to unlock significant value for all stakeholders.”
“A return to international sales prices will be transformative for the Company’s cash flow while we believe the signed agreements with the KRG and federal government of Iraq, along with the production sharing contracts, will facilitate long term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan Field accounts for a significant portion. We are delighted to have reached this successful resolution and are looking forward to the future as we remain focused on driving value for Gulf Keystone shareholders.”
Read More: Majority of Oil Companies Reach Deal on Oil Exports
The Norwegian company DNO welcomed the oil sales, but said they have decided not to export oil through the ITP and said it will export the KRG’s share from the Tawke license, averaging 38,000 barrels per day, while the contractors’ share, averaging 30,000 barrels per day, will continue to be sold locally.
“DNO is pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets,” said DNO Executive Chairman Bijan Mossavar-Rahmani. “We have elected not to engage directly in exports at this time and will continue to sell our oil on a monthly cash-and-carry basis to our buyers at a per barrel price in the low $30s range,” he explained.
“But we understand our buyers have set up their own arrangements to place oil purchased from us into the export pipeline, a move we welcome as it supports the larger export project,” Mossavar-Rahmani added.
Earlier on Tuesday, the KRG Ministry of Natural Resources said the decision by “one foreign entity” not to sign the oil agreement with Baghdad and Erbil will not impact the trilateral agreement between the Ministry, the participating companies, and the Federal Ministry of Oil, in an indirect reference to the DNO.
Ali Nizar Faiq, director general of the SOMO, on Friday told reporters that the oil exports will resume on Saturday and that Thursday’s agreement is not a temporary deal but “one that lays the foundation for long-term understandings … and putting an end to past disputes [between Erbil and Baghdad].”
In a statement U.S.-based HKN Energy also said they are particularly thankful to the officials involved in spearheading productive negotiations over the last several months.
“The reopening of the ITP is a vital step for Iraq, the Kurdistan Region, and international investors,” Matthew Zais, Vice President of HKN Energy, stated. “We are grateful for the leadership shown by Prime Minister al-Sudani and Prime Minister Barzani, and for the critical support of the U.S. government”
HKN Energy also underlined that this agreement is an interim step. “Full implementation will be key to ensuring the long-term stability of exports and the prosperity of both Iraq and the Kurdistan Region.”
