A landmark three-month agreement that resumed oil exports from the Kurdistan Region of Iraq (KRI) to international markets is set to be renewed, ensuring the continuation of a critical revenue stream after years of disruption.

The deputy head of Iraq's State Oil Marketing Organization (SOMO), Hamdi Shingali, confirmed to Rudaw that the pact between the federal government in Baghdad and the Kurdistan Regional Government (KRG) will be extended. "The agreement will be renewed without any problem," Shingali stated. "Oil exports from the Kurdistan Region will continue."

Exports through the Iraq-Turkey pipeline restarted on September 27, following a nearly three-year suspension. The halt began in March 2023 after Iraq won an international arbitration case against Turkey, which had been facilitating independent Kurdish oil sales. The resumption was made possible by a tripartite agreement involving the KRG, Baghdad, and international oil companies operating in the semi-autonomous region.

The current interim deal was scheduled to expire in late December.

nder the terms of the agreement, the KRG's Ministry of Natural Resources is committed to supplying at least 230,000 barrels per day (bpd) to SOMO for international sale. An additional 50,000 bpd is allocated for domestic consumption within the Kurdistan Region, according to Natural Resources Minister Kamal Mohammed.

Shingali reported that approximately 200,000 bpd from Kurdish oilfields are currently being exported. Minister Mohammed noted in mid-November that, since the restart, over 10 million barrels of KRI oil had been sold internationally via the federal system.

The minister also highlighted the significant unused capacity of the export route. The Turkey-Iraq Pipeline can handle up to 750,000 bpd. Prior to the 2023 shutdown, the Kurdistan Region was exporting between 400,000 and 420,000 bpd, indicating potential for increased future flows pending further political and technical agreements.