Signing of a tripartite agreement on Kurdistan's oil exports
A meeting between Kurdistan Regional Government officials and a delegation from the North Oil Company and oil-producing companies in the region concluded this evening, resulting in the signing of a tripartite agreement between the three parties.
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A source in the North Oil Company, who requested anonymity, told the "Al-Jabal" platform on Monday, September 22, 2025, that "a tripartite agreement was signed in Erbil a short while ago between the Ministry of Natural Resources in Kurdistan, the Federal Ministry of Oil, and the oil companies regarding the resumption of oil exports from Kurdistan's fields."
According to information obtained by Al-Jabal's correspondent in Baghdad, "Prime Minister Mohammed Shia al-Sudani has warned members of the delegation representing Baghdad to remain discreet about the details and content of the agreement and not to disclose them to the media until he announces them himself."
According to the agreement, "oil exports from Kurdistan will resume."
Kurdistan Regional Government spokesman Peshwa Hawrami told the Jabal platform this morning that "the Kurdistan Regional Government, the federal government, and oil production companies have reached an agreement on the oil file, and a tripartite agreement will be signed between the three parties in this regard today."
A delegation from the Kirkuk North Oil Company, headed by the company's general manager and representing the federal Ministry of Oil, arrived in Erbil to conclude an agreement with the Kurdistan Regional Government's Ministry of Natural Resources.
For months, disagreements between Baghdad and Erbil over the price of oil production and exports from the region's fields, as well as non-oil revenues in Kurdistan, have hampered Baghdad's ability to pay salaries to employees, retirees, and subsidy recipients in the Kurdistan Region. However, officials' confirmation that an agreement was reached on resuming oil exports and that the State Council had decided on non-oil revenues yesterday, as well as the conclusion of the agreement today, pushes the Council of Ministers toward making a decisive decision on employee salaries during its regular session scheduled for tomorrow, Tuesday.
Hawrami said, "After the signing of the tripartite agreement, there will be no obstacles to sending salaries to Kurdistan Region employees, and Baghdad must send them as soon as possible."
North Oil: We may resume exporting Kurdistan Region oil via Türkiye within the next few hours.
The North Oil Company expects the resumption of oil exports from the Kurdistan Region via Turkey within the next 48 hours.
The Director of the North Oil Company, Amer Khalil, said that the oil companies requested guarantees to obtain their rights and dues, and the government agreed to this and will provide them with the necessary guarantees.
For his part, a source in the production department of the North Oil Company confirmed that it will receive the Kurdistan Region's oil in Zakho and export it to the Turkish port of Ceyhan, and that its representative participated in today's meeting that witnessed the reaching of an agreement between the Ministry of Oil, the Ministry of Natural Resources in the Kurdistan Region, and the oil companies operating in the region. Oil
sources expected the resumption of oil exports after the approval of the Iraqi Council of Ministers tomorrow.
Why do companies producing Kurdish oil demand oil instead of cash?
International companies producing oil in the Kurdistan Region will receive crude oil instead of cash as part of their entitlements, according to a recent agreement that has yet to be finalized. Sources told Rudaw that the firms requested this form of payment to ensure the security of their revenues.
Kurdistan Region Prime Minister Masrour Barzani announced on Saturday that Baghdad has reached an agreement with international oil companies that could pave the way for the resumption of Kurdish oil exports that have been stalled since 2023.
Baghdad and International Oil Companies (OICs) have yet to officially comment on the deal but well-informed sources on Monday revealed parts of the agreement to Rudaw.
An amendment to the Iraqi budget law in early February set a temporary entitlement of $16 per barrel for production and transportation costs, to be paid to the oil producers until an international consultant determines the real value.
Two senior sources in Baghdad and one in the Kurdistan Region confirmed to Rudaw the latest deal between the companies and the Iraqi federal government stipulates that oil will be given to the producers instead of $16 per barrel entitlement.
Sources, speaking on condition of anonymity, cited two main reasons for designating oil as the form of financial entitlement for the companies. First, it provides a guarantee for the firms to secure their payments, as they fear potential delays if entitlements are paid in cash by Baghdad. Second, it helps alleviate pressure on Baghdad, which is reportedly facing cash shortages. Payments in US dollars could lead to further delays, making oil a more practical alternative.
Rudaw understands that the value of oil provided to companies in lieu of their financial entitlements will be calculated based on the oil price at Turkey’s Ceyhan port.
Oil exports from the Kurdistan Region through the Iraq-Turkey pipeline have been suspended since March 2023, when a Paris-based arbitration court ruled in favor of Baghdad that Ankara had violated a 1973 pipeline agreement when it allowed Erbil to begin exporting oil independently in 2014.
The Iraqi federal government and the Kurdistan Regional Government (KRG) have been locked in a long-running dispute over oil revenues and export rights. After months of negotiations, they have agreed that the KRG will deliver its oil to SOMO and keep some for domestic production.
Ali Nizar Faiq, director general of Iraq's State Oil Marketing Organization (SOMO), said on Tuesday that they had completed all preparations with companies purchasing oil produced in the Kurdistan Region.
Dagher: Addressing the exchange rate crisis requires a balance between monetary, trade, and fiscal policies.
Financial and banking expert Mahmoud Dagher asserted that the economic challenges facing Iraq stem from imbalances in the national economy's structure. He explained that the gross domestic product (GDP) is unable to meet market needs, forcing the country to rely heavily on imports.
In an interview with Jarida Platform, Dagher explained that "the ease of laws and weak customs controls, in addition to corruption and loopholes at border crossings, have made imports a necessity for securing livelihood requirements, but at the same time, they have harmed local economic activity."
He added, "The Central Bank has been able to somewhat meet official traders' demands and reduce the exchange rate gap between the official and parallel markets. However, this gap still exists and poses a threat to the Iraqi economy, as it has caused prices to rise in a manner disproportionate to the official exchange rate of 1,320 dinars to the dollar."
Dagher stressed that "confronting this problem cannot be limited to monetary policy alone, but rather requires activating trade and fiscal policy tools to ensure economic stability and address structural imbalances."
Legal expert: The Central Bank is following a wise policy in diversifying its investments.
Nouri told Al Furat News Agency, "Central banks around the world, including the Central Bank of Iraq, are pursuing a diversification strategy to avoid risks and achieve the best returns in the long term."
He added, "Investing in US bonds is a key option for achieving stable, periodic returns, but it is affected by the decisions of the US Federal Reserve, as investment in them tends to decline when interest rates are lowered."
The legal expert continued, "Central banks compensate for this shortfall by turning to gold, which is considered a safe haven during times of economic crisis." He explained that "gold does not provide fixed annual returns like bonds. Rather, its profits depend on the difference between the buying and selling prices, making it a strategic investment for preserving asset value."
The President of the Republic heads to New York amid American coldness towards Al-Sudani
Exclusive sources revealed to Al-Mustaqilla that Iraqi President Abdul Latif Rashid is preparing to travel to New York to participate in the United Nations General Assembly meetings, which begin this week with the attendance of leaders from around the world.
This visit comes at a significant time, as a well-informed political source confirmed that Prime Minister Mohammed Shia al-Sudani is facing clear distaste from the US administration. The source described him as currently "undesirable" in Washington due to his government's growing closeness to regional and international parties that are not aligned with US policies, in addition to thorny issues, most notably relations with Russia and the issue of armed factions.
Observers believe that the President's solo trip to New York, given this climate, reflects Baghdad's desire to maintain a balanced diplomatic channel with the international community, particularly the United States, in an attempt to avoid any tensions that could impact Iraqi interests, especially given Iraq's continued need for international support on security, investment, and energy issues.
Rashid is expected to deliver Iraq's speech before the General Assembly, highlighting sustainable development issues and climate crises, as well as calling on the international community to support Iraq in its efforts to achieve political and economic stability.
All eyes remain on whether this participation will open the door to a calm dialogue between Baghdad and Washington, or whether the current coldness will continue, presenting the Iraqi government with new challenges in balancing its foreign relations.
Al-Sudani's advisor: Iraq is embarking on global projects that invest in human capital and its geographical location.
Prime Minister's advisor, Hussein Allawi, confirmed that Iraq is embarking on massive strategic projects in the coming period, opening up global prospects for the country.
Allawi said, "The current government has achieved significant indicators for developing the non-oil economy, reflecting its continued approach over the past years . "
He added, "There are tremendous investment and economic opportunities in the country, in addition to an ambitious potential that the world is looking to and advancing towards in the fields of mineral resources, human resources, and Iraq's geographical location."
He explained that "there are many investments, whether in the development road, the Grand Faw Port, or other strategic projects," stressing that "Iraq is keen on major projects that will open up many horizons for it on the regional and global levels."
"Investors will be keen on large strategic projects in modern economic sectors such as mineral resources and megaprojects," he said.
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Legal expert: The Central Bank is following a wise policy in diversifying its investments.
Nouri told Al Furat News Agency, "Central banks around the world, including the Central Bank of Iraq, are pursuing a diversification strategy to avoid risks and achieve the best returns in the long term."
He added, "Investing in US bonds is a key option for achieving stable, periodic returns, but it is affected by the decisions of the US Federal Reserve, as investment in them tends to decline when interest rates are lowered."
The legal expert continued, "Central banks compensate for this shortfall by turning to gold, which is considered a safe haven during times of economic crisis." He explained that "gold does not provide fixed annual returns like bonds. Rather, its profits depend on the difference between the buying and selling prices, making it a strategic investment for preserving asset value."
A matter of time
A disaster threatens millions of Iraqis: Employees, prepare to adapt to "one salary" every three months!
Iraq is facing increasing pressure due to fluctuations in the global oil market, at a time when experts are talking about serious risks threatening the general budget and the foundations of economic stability. Economist Nabil Al-Marsoumi confirms that oil prices are under direct American-European pressure, as US President Donald Trump seeks to reduce prices to $55 per barrel to serve electoral goals and reduce Russian revenues, thus hastening the end of the Russian-Ukrainian war. Al-Marsoumi indicated on his Facebook page , followed by "Baghdad Today," that the European Commission is close to reducing the price ceiling for Russian oil from $60 to $47.60, while Trump called on his European counterparts to impose tariffs of up to 100% on Russian oil exported to China and India, which import 79% of it at reduced prices. With weak global demand and increased production from OPEC and non-OPEC countries, Al-Marsoumi believes that prices could fall below $60 within the next six months.
Other experts describe this scenario as "the coming catastrophe for Iraq," given that the Iraqi budget was based on a reference price of $70 per barrel. Any drop to $50 would mean a doubling of the deficit, a record-high domestic debt, and the possibility of the state entering a liquidity crisis that would prevent regular salary payments, potentially delaying them for two or three months at a time.
Oil and economic expert Ahmed Askar links these concerns to the structure of the rentier economy, explaining to Baghdad Today that "the economic situation in Iraq will remain directly linked to fluctuations in global oil prices, and any drop in prices could put pressure on the general budget and the state's ability to finance services and investment projects." He points out that the near-total reliance on oil revenues makes the economy vulnerable to any external shock, which necessitates adopting budgets based on multiple scenarios, establishing a financial stability fund, and diversifying sources of income by developing non-oil sectors.
Financial affairs expert Rashid Al-Saadi told Baghdad Today that OPEC+'s decision to increase production starting next October compounds the complexities of the situation, as the increase in oil supply could place additional pressure on prices if it is not met with a similar growth in demand. He added that increasing pumping rates requires additional operating and maintenance costs, which already burdens the Iraqi budget. Although the planned increase – of approximately 137,000 barrels per day – may provide a short-term financial relief, the sustainability of the gains remains contingent on how the revenues are managed and directed towards development projects and reducing public debt.
Historical background shows that Iraq has been vulnerable to fluctuations in OPEC quotas and international pressure since the 1970s, and that the tension between the need for revenue and compliance with agreements has been present at every stage. This legacy makes any new drop in oil prices a real test of Baghdad's ability to confront the crisis.
Ultimately, the readings of Al-Marsoumi, Askar, and Al-Saadi converge on one point: the fragility of the Iraqi economy in the face of oil shocks. If the expected scenario of oil prices falling below $60 comes to fruition, Iraq faces a stifling financial crisis that could double the state's deficit and threaten the regularity of salaries, amid mounting domestic debt and unavoidable spending pressures.
The tripartite agreement brings the Kurdistan Region and Baghdad closer together
The Kurdistan Regional Government (KRG) has signed a tripartite agreement with the Kurdistan Regional Government (KRG) to resume oil exports after two years.
The agreement is expected to be signed before the Iraqi Council of Ministers meeting tomorrow.
Oil exports will solve the wage problem
A senior source in Baghdad told PUKMEDIA: All eyes are on the signing of the agreement, because the export of oil will solve the salary problem of the Kurdistan Region.
He added that if the agreement is signed today, the oil must be exported through the world port within 24 hours, or the oil sent to SOMO to use for domestic needs.
The senior source in Baghdad said: If the tripartite agreement is signed, the federal government is obliged to send the salaries of the six months of this year by the end of the year, which is expected to compensate for the months that have not been sent.
Iraq will lose more than $2 million
Rebwar Mohammed Amin, an energy expert, told PUKMEDIA that the Iraqi government will lose more than $2 million daily if the Kurdistan Regional Government does not resume oil exports, because the oil companies in Iraq receive $6 per barrel They receive.
According to the agreement between the Kurdistan Region and Baghdad, the Kurdistan Regional Government must export 230,000 barrels of oil per day, the difference between the Iraqi oil companies and the Kurdistan Regional Government is $ 10 per barrel.
Both governments must abide by the agreement
According to PUKMEDIA, with the resumption of oil exports from the Kurdistan Region, Iraq's daily oil production will increase to 4 million barrels per day, while exporting 3.4 million barrels.
In this regard, Bahjat Ahmad, an expert in the field of oil and energy told PUKMEDIA: It is important that the agreement between Iraq and the Kurdistan Region and oil companies within the framework of the oil and gas law.
The problem of salaried employees will be solved this year
Earlier, Dr. Narmin Ma'roof, a member of the Finance Committee of the Iraqi Parliament told PUKMEDIA that if the tripartite agreement is signed, the problem of salaried employees will be solved for this year and the Iraqi government will be obliged to send salaries.
Oil exports have been suspended for more than two years
Kurdistan Regional Government (KRG) employees are waiting for the re-export of oil to solve their salary problems and receive their salaries on time every month like Iraqi employees, although Iraq has started distributing them The salaries of September have been paid, but the Kurdistan Regional Government (KRG) is waiting to receive the salaries of July and no date has been set for receiving their salaries.
More than two years have passed since the 277-page Paris Declaration, which was issued on February 13, 2023, and on March 25, 2023, officially suspended the export of oil from the Kurdistan Region.
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