KRG Confirms Oil Export Agreements Progresss

 

What’s going on?

The Kurdistan Regional Government (KRG) says it has taken all the required steps to export oil from Iraqi Kurdistan, working together with Iraq’s federal Ministry of Oil. (Iraq Business News)

Almost all domestic and international oil companies operating in the region have signed on to the agreement—except for one foreign company (widely reported to be DNO, in partnership with Genel Energy) which hasn’t yet formalized its commitment. 

On 23 September 2025, the KRG’s Ministry of Natural Resources and the companies submitted their approvals to the Federal Ministry of Oil. Now, the ball is in Baghdad’s court. Once the federal ministry gives its go-ahead, the State Organization for Marketing of Oil (SOMO) can start moving Kurdistan’s oil out according to the new deal. (Iraq Business News)

DNO, which is the largest oil operator in Kurdistan, has said it’s eager to resume exports—so long as there are solid guarantees about payment, both for past unpaid amounts (arrears) and future oil shipments. 

Why this is especially important

To understand why all this matters, here’s some background:

The pipeline & export suspension

• Oil from the Kurdistan Region has historically been exported via the Kirkuk–Ceyhan (Iraq → Turkey) pipeline. (Wikipedia)

• In March 2023, all Kurdistan oil exports were suspended. This followed an arbitration ruling favoring Baghdad over how exports were being handled, particularly about independent exports by the KRG. (Kurdistan24 - کوردستان 24)

• Since then, the KRG has not been able to export oil independently without Iraq’s consent. 

The financial stakes and arrears

• The KRG is estimated to owe around $1 billion in unpaid arrears to oil companies for past deliveries. (Reuters)

• Two companies—DNO and Genel Energy—haven’t signed the new agreement yet. These companies, especially DNO, are owed a large portion of those arrears. 

• As part of the deal, the KRG and oil companies have agreed to meet within 30 days of restarting exports to establish a mechanism for paying off these debts. (rudaw.net)

Preparations are done — now waiting on the deal

• Technically, Kurdistan’s pipeline network is ready: pipeline cleaning, pump maintenance, tank inspections, and all support works are reportedly finished. (Kurdistan24 - کوردستان 24)

• What remains is a final “tripartite” agreement between the KRG, Iraq’s federal Oil Ministry, and the oil companies. Once that is formally signed, exports are expected to resume within days. 

• KRG officials have said that exports could resume in about 48 to 72 hours once the agreement is signed. (rudaw.net)

Simplified summary

The KRG says it has done everything it needs to do to resume oil exports from the Kurdistan region, in coordination with Iraq’s central government. Nearly all oil companies have signed up, except for one big one (DNO/Genel), which is holding out until payment terms are clear. The technical side is ready, and now people are just waiting for Baghdad to sign the agreement. Once that’s done, oil export can restart quickly.