Test flows are expected to begin Saturday as Baghdad, Erbil, and IOCs reach agreement on cooperative pipeline exports via Turkey.
Baghdad, Erbil, and oil companies appear to have reached a three-way agreement to resume Kurdistan's oil exports under federal authority.
Production increased in August as OPEC-plus quotas continued to ease and fields in Iraqi Kurdistan recovered from drone attacks.
Rivalries between political leaders in Sulaimaniya have exploded into violence and undermined relations between Iraqi Kurdistan’s two ruling parties at a key political moment.
Export levels were unchanged from July to August as authorities in Baghdad and Erbil continue talks to resume northern crude flows to Turkey.
Iraq's Cabinet said Tuesday that further payments are contingent on the KRG transferring most of its oil production and non-oil revenue to Baghdad.
U.S. designation of a key oil sector logistics provider highlights sanctions risks, prompting Iraqi measures to combat corruption in fuel trading.
Iraqi oil sales increased in July, even as the fate of a deal to restart northern exports via Turkey remains uncertain.
Operational disruptions caused by the Israel-Iran war do not appear to have affected Iraqi crude output, which was virtually unchanged from May to June.
Federal financial transfer signals political will to implement an agreement that could result in re-starting northern oil exports, though further hurdles remain.
