This breakthrough marks a significant step toward resolving a long-standing dispute over energy management between Baghdad and Erbil.

In a statement the Ministry revealed that the agreement was signed by 23 delegates from both sides, including 17 members from the federal Ministry of Oil. The consensus was reached on August 11, following a series of meetings that began on July 17 and included site visits to all oil fields in the Kurdistan Region to assess technical issues.

Under the agreed-upon mechanism, after reserving 50,000 barrels of oil to meet local needs, the remaining quantities will be handed over to the Iraqi Oil Marketing Company (SOMO) for export. The statement, however, noted a crucial condition: the actual resumption of oil exports from the Kurdistan Region remains contingent upon ongoing negotiations between the federal government and the Turkish government to reopen the pipeline.

The export of Kurdistan’s oil was halted via the Iraq-Turkey pipeline through Ceyhan, a key artery for Iraqi oil to international markets. This new agreement signals a positive shift towards federal oversight of all Iraqi oil exports, a central demand from Baghdad, while maintaining production in the Kurdistan Region.