Kurdistan officially ended all contracts and obligations with its oil buyers. This move clears the way for resuming exports. Officials said resuming oil flows from Kurdistan strengthens its role in the European market. Moreover, this action signals Iraq’s commitment to stabilizing regional energy supply.
SOMO Director General Ali Nizar al-Shatri explained that current issues involve operational arrangements rather than legal disputes. He said Iraqi law governs all parties. Therefore, the federal Ministry of Oil and Kurdistan’s Ministry of Natural Resources operate within a single framework. Only the relationships between the regional government and producing companies differ.
Al-Shatri emphasized that federal and regional authorities, along with producing companies, must finalize the 2025 budget law implementation. Officials reached advanced understandings. They continue efforts to transport Kurdish crude to Turkey’s Ceyhan port for international export. Authorities coordinate production schedules to meet demand efficiently.
Local companies consume most Kurdish crude. However, producers plan to export excess quantities under the 2025 budget law. Kurdistan fulfilled all contractual obligations. SOMO stands ready to receive oil once production resumes. Officials highlighted that Kurdish crude matches Russian oil in quality. Therefore, Kurdistan can serve as an alternative supplier to Europe amid the Russian supply gap.
The Kurdistan Ministry of Natural Resources has not delivered any crude to SOMO. Companies maintain direct contracts with the ministry. Officials coordinate closely to ensure stable exports and avoid disruptions. In addition, they monitor pipeline operations to maintain safe and reliable transport.
Moreover, Kurdistan’s plans reflect a strategic approach to balancing domestic production and global demand. By coordinating with authorities and companies, Kurdistan ensures stable supply chains and strengthens its influence in the international energy market. Authorities also plan contingency measures to prevent any export interruptions.
This initiative supports Iraq’s overall role as a dependable oil supplier. It also provides European buyers with alternative sources during volatile markets. Kurdistan ended its oil contracts and continues preparing to export oil efficiently. This strategy demonstrates Kurdistan’s commitment to European markets, operational efficiency, and fulfilling international obligations.
