ERBIL, Kurdistan Region – A clear payment pathway for international oil companies operating in the Kurdistan Region has been established, following the recent agreement to restart crude exports via the Iraq-Turkey pipeline.

The Association of the Petroleum Industry of Kurdistan (APIKUR) detailed the new mechanism in a statement on Thursday. According to the announcement, the Iraqi government will settle its debts for crude oil produced in the Kurdistan Region and delivered to Iraq's federal State Oil Marketing Organization (SOMO) through in-kind deliveries of oil at the Turkish port of Ceyhan.

To ensure payment security for the companies, the mechanism specifies that an international marketer, designated by the oil firms, will handle the sale of the oil and deposit the proceeds into a dedicated escrow account.

Furthermore, in line with Iraq's amended federal budget law, the country's Ministry of Finance will provide an interim payment of $16 for every barrel of crude delivered to SOMO. This advance is intended to cover production and transportation costs.

This financial clarification is a key development following the resumption of oil exports from the Kurdistan Region, which had been halted for over six months.

On September 25, Iraqi Prime Minister Mohammed Shia' al-Sudani announced a tripartite agreement between the Kurdistan Regional Government, international oil companies, and Iraq's Federal Ministry of Oil, paving the way for exports to restart.

The same day, Kurdistan Region Prime Minister Masrour Barzani stated on social media that the agreement was the "result of tireless efforts and months of negotiation by teams on all sides."