Diplomatic Missions Welcome Iraq-KRG Oil Export Agreement

PUKMEDIA

KRG and Iraqi Government's logos.

Foreign diplomatic missions in Iraq have welcomed the recently announced agreement between the Federal Government of Iraq and the Kurdistan Regional Government (KRG) to resume oil exports through the Iraq-Türkiye pipeline.

U.S. Secretary of State Marco Rubio welcomed the agreement and said: “We welcome the announcement that the Government of Iraq has reached an agreement with the KRG and international companies to reopen the Iraq–Türkiye pipeline. This deal, facilitated by the United States, will bring tangible benefits for both Americans and Iraqis while reaffirming Iraq’s sovereignty.”

The U.S. Consulate in Erbil also emphasised the significance of the agreement, commending the decisive efforts of the Iraqi Prime Minister, senior officials of the Iraqi Government, the KRG Prime Minister, and senior KRG officials in making the deal possible. According to the Consulate, the reopening of the pipeline will strengthen the mutually beneficial economic partnership between the United States and Iraq, encourage a more stable investment environment for U.S. companies, enhance regional energy security, and reinforce Iraq’s sovereignty.

The British Embassy in Baghdad and the British Consulate-General in Erbil described the deal as “historic,” highlighting it as a key step toward stronger investment and greater prosperity for all Iraqis. 

The British Embassy said in a statement: “We welcome the historic agreement between the Kurdistan Regional Government and the Federal Government of Iraq to reopen the Iraq-Türkiye pipeline. This agreement marks an important step forward for stronger investment, and greater prosperity for all the people of Iraq. We commend both Baghdad and Erbil for their commitment to dialogue in reaching this milestone.”

Similarly, the German Embassy in Iraq congratulated both governments, noting that reopening the export pipeline is central to effective cooperation and a crucial driver of stability and prosperity in Iraq and the wider region.

The German Embassy said in a statement: “The German Embassy in Iraq congratulates the Iraqi Federal Government and the Kurdistan Regional Government on the agreement to reopen the export pipeline to Türkiye, which is central for effective cooperation and a key for stability and prosperity in Iraq and the wider region.”

France’s Ambassador to Iraq Patrick Durel welcomed the agreement, stating that its implementation serves the interests of all parties and represents a positive step forward for the country.

He said: “I welcome the agreement announced yesterday between the federal government and the Kurdistan Regional Government to resume exports of oil produced in the autonomous region. Its implementation serves the interests of all parties and is a positive step forward for the country.”

The European Union Delegation to Iraq also expressed support, emphasising the importance of the agreement in facilitating trade and regional stability.

The European Union Delegation to Iraq said in a statement: “The European Union Delegation in Iraq welcomes the agreement between the Iraqi Federal Government and the Kurdistan Regional Government to reopen the export pipeline to Türkiye.”

The international endorsements underscore the significance of the deal in strengthening Iraq’s economic and political ties, both domestically and abroad, as Baghdad and Erbil move to implement the agreement.

A tripartite agreement was signed last week between the federal government, the KRG, and international oil-producing companies operating in the Kurdistan Region to resume oil exports via Türkiye’s port of Ceyhan. The deal comes after a suspension of more than two years following a ruling by the International Court of Arbitration in Paris.

Exports through the Ceyhan port were halted in March 2023, after the International Chamber of Commerce tribunal ruled that Türkiye had breached a 1973 pipeline transit agreement by allowing the KRG to export crude independently of Baghdad.

Under the terms of the new agreement, the Kurdistan Region is required to produce 280,000 barrels of oil daily, of which 50,000 barrels will be allocated for domestic consumption, while the remaining 230,000 barrels will be delivered to the State Oil Marketing Organization (SOMO) for export.

Longstanding disputes between Baghdad and Erbil over the Kurdistan Region’s share of the federal budget have directly affected public sector salaries, with the federal government transferring funds for only six salary payments in the past eight months. The new oil agreement is expected to ease fiscal pressures and support public sector payments across the region.



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