"They discussed bilateral relations between Iraq and the US, particularly regarding American oil companies operating in Iraq, in addition to discussing the outstanding issues between oil companies in the Kurdistan Region and ways to address them to allow the resumption of oil exports," the Iraqi foreign ministry said in a statement.
In the meeting, Hussein and Fagin also discussed regional developments, with the US envoy “reviewing the US government’s position on developments in the Middle East.”
Oil exports through the Iraq-Turkey pipeline have been suspended since March 2023, following a ruling by a Paris-based arbitration court that found Turkey in violation of the 1973 pipeline agreement by allowing the KRG to independently export oil since 2014.
The Kurdistan Region’s natural resources ministry said on Wednesday that Erbil and Baghdad have reached an agreement on the mechanism of resuming the Region’s long-delayed oil exports, but more talks between Iraq and Turkey are required.
Under the deal, the KRG will retain 50,000 barrels of oil daily for domestic use, while the remaining quantity will be handed to Iraq’s oil marketing arm for export through the Iraq-Turkey pipeline, according to the natural resources ministry. It also follows lengthy discussions between Iraqi and Kurdish delegations that began in July.
Earlier in August, Iraq’s oil ministry said that Baghdad is “committed” to receiving 230,000 barrels per day from the Kurdistan Region - per a July deal - for export through Iraq’s State Oil Marketing Organization (SOMO).
In return, Baghdad pledged to release long-delayed public sector salaries in the Region. The federal government has since sent 975 billion dinars (around $737 million) to cover May salaries, but implementation has stalled over technical and financial disputes, leaving June and July wages unpaid.
