Kurdistan oil firms reach deal with Baghdad to resume exports
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Eight oil companies in Kurdistan reach preliminary deal with Baghdad to restart crude exports via the Iraq–Turkey pipeline within days.
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Water buffaloes swim near the Nihran Bin Omar oil field north of Basra, Iraq, Wednesday, March 22, 2023 (AP)
Eight foreign oil companies operating in Iraq’s Kurdistan region announced on Wednesday that they have reached preliminary agreements with both the federal government in Baghdad and the regional authorities, paving the way for the resumption of crude exports.
The companies clarified that the agreements remain at an initial stage, but once finalized and implemented, they will allow exports to resume within days through the Iraq–Turkey pipeline, which has been idle amid political and contractual disputes.
The announcement came shortly after Iraqi Prime Minister Mohammed Shia’ al-Sudani confirmed that Baghdad had signed a separate framework agreement with US energy giant Chevron. The deal includes the development of the Nassiriya project, composed of four exploration blocks, as well as the Balad oil field and other producing fields with additional potential reserves.
Al-Sudani welcomed Chevron’s return to Iraq after years of suspension, stressing that his government is pursuing a new approach in its dealings with major international oil firms, particularly American companies.
Iraq signs deal with Chevron
Al-Sudani announced back in August the signing of a principles agreement with US energy company Chevron, covering exploration and development projects in several key oil fields.
According to al-Sudani, the deal includes the al-Nasiriya project, made up of four exploration blocks, as well as the development of the Balad oil field, other producing fields, and potential new blocks.
In a statement, the prime minister said the agreement paves the way for advancing exploration and production projects across multiple regions of Iraq, aligning with the government’s strategy to attract greater foreign investment in the energy sector.
Iraq ends international coalition's mission
This comes after the Iraqi government announced that the US-led international coalition’s mission in Iraq will officially end in September 2025, according to al-Sudani's advisor, Hussein Allawi, as reported by the state-run Iraqi News Agency (INA).
Allawi confirmed that the coalition’s presence at its Baghdad headquarters and Ain al-Asad airbase will end in September under an agreement between Iraq and coalition members, in line with the government’s plan to bolster Iraq’s armed forces and transition to bilateral defense partnerships.
“The Iraqi government is committed to its program of building the armed forces and ending the coalition’s mission, while transitioning relations with coalition countries into stable bilateral defense arrangements guided by political, economic, and cultural ties,” the advisor told INA.
Full withdrawal by September 2026
The prime minister's advisor outlined a two-stage timeline agreed upon by Iraq and the coalition, with the initial withdrawal phase scheduled for September 2025 and the full completion targeted by September 2026. He noted that Iraq plans to continue advisory and capacity-building partnerships with international allies beyond that period.
