PM Sudani, Turkish energy minister discuss Kurdish oil exports

ERBIL, Kurdistan Region - Iraqi Prime Minister Mohammed Shia’ al-Sudani received Turkish Energy Minister Alparslan Bayraktar in Baghdad to discuss a range of topics including the resumption of Kurdish oil exports and the possibility of exporting Basra oil through the Iraq-Turkey pipeline, his office said on Monday.

During the meeting, Sudani said that “the government is making significant efforts to resume oil exports from the Kurdistan Region of Iraq, stating that negotiations are ongoing with foreign oil companies contracted with the Region to resolve certain technical issues preventing the resumption of exports,” according to his office.

Bayraktar arrived in Baghdad on Sunday to discuss expanding Turkey’s electricity and gas supplies to Iraq. The visit came as the Iraqi government attempts to diversify its energy sources following the recent US decision to revoke a waiver that allowed Iraq to import electricity from Iran.

Bayraktar also “highlighted the importance of exporting oil from Basra through Turkey’s Ceyhan port” in the meeting, according to the statement. Earlier in March, Iraq's oil minister revealed that Baghdad is exploring the possibility of exporting Basra oil through the Iraq-Turkey pipeline.

Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been halted since March 2023 after a Paris-based arbitration court ruled in favor of Baghdad. The court determined that Turkey had violated a 1973 pipeline agreement by permitting Erbil to export oil independently starting in 2014.

In early February, the Iraqi parliament approved amendments to the federal budget law, which included a $16 per barrel production and transport fee for international oil companies (IOCs) operating in the Kurdistan Region. This move is considered a critical step toward restarting oil exports.

Nevertheless, negotiations between Iraqi and Kurdish officials, as well as IOCs, have yet to yield concrete results. While IOCs demand payment guarantees and contractual security, Baghdad insists on federal oversight, and Erbil seeks a resolution that safeguards its economic interests.

On Sunday, Bayraktar was received by Kurdistan Region Prime Minister Masrour Barzani in Erbil where they agreed to “eliminate all obstacles to the export of oil between the Kurdistan Region through the [Turkish] port of Ceyhan,” according to a Kurdistan Regional Government (KRG) statement.

According to the statement from Sudani’s office, the premier also “affirmed the government’s commitment to enhancing cooperation with Turkish companies across various sectors, alongside collaboration in the energy sector, where the government is working to diversify its sources. This includes increasing electricity supply through joint interconnection.”

Bayraktar said on Sunday that Ankara wants to strengthen its “strategic partnership” with Baghdad.

“We evaluated what could be done to deepen our cooperation in the field of energy and contribute to regional energy security. We also discussed increasing our current electricity exports to Iraq in a short period of time,” he said on X.

Iraq has long been dependent on energy imports from Iran, with US waivers allowing Baghdad to bypass sanctions on Tehran to meet its energy needs.

However, in early February, US President Donald Trump restored his "maximum pressure" policy against Iran intending to reduce Tehran's oil exports to zero, arguing that the Islamic republic is “too close” to obtaining nuclear weapons.

Last week, the US accordingly rescinded a waiver that permitted Iraq to purchase electricity from Iran.

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