A subsea pipeline project could lift export capacity by 500,000 bpd in just over a year, but the funds can't be released until Iraq passes a new budget.
Last-minute additions to the budget bill could undermine a new framework for oil and financial cooperation needed to restart northern exports and support Kurdistan’s oil sector.
Baghdad has sent nearly $1 billion to Kurdistan since March, highlighting political cooperation that could grow into reliable financial flows with the passage of a new budget law.
Iraq is ready to restart pipeline exports and relieve financial pressure on the KRG, but Turkey’s delays are prompting speculation of political complications.
Formal orders from SOMO highlight progress in Baghdad-Erbil negotiations to implement a new framework for Kurdistan’s oil and revenue. All eyes are now on Turkey.
Key details of the landmark Iraq-Turkey arbitration ruling have big implications for the future of Baghdad-Erbil power dynamics and the KRG oil sector.
Signing ceremony signals strong political backing for agreement, but pipeline flows remain shut as technical details are still being negotiated.
Under a provisional compromise deal, SOMO would take over selling crude and KRG would keep control of its oil revenue.
Oil companies are beginning to shut down oil production after a landmark arbitration ruling that led Turkey to halt Iraq's northern exports.
CEO frames negotiations as a test of Iraq's ability to prioritize respect for contracts over political expedience.
