Iraq's parliament has approved a budget amendment to allow a restart of crude exports from the Kurdistan region via the Turkish Mediterranean port of Ceyhan. The change to the draft budget law will see operating oil companies in the semi-autonomous Kurdish region resuming oil exports at the rate of US$16/bbl, double the previous rate. This pricing arrangement is expected to facilitate a swift return of Kurdistan’s oil to international markets, reinforcing economic stability and regional cooperation.
For several years, the Kurdistan Regional Government (KRG) has been engaged in a political fight against the central government over its oil resources. It started to export oil independently in 2013 through a new crude oil pipeline delivering locally-produced oil to Ceyhan (Turkey). In 2022, the Federal Supreme Court ruled that Kurdistan's 2007 oil and gas law was unconstitutional. Consequently, Kurdistan will be obliged to deliver its entire oil production to the federal government. In addition, the government has the right to cancel oil contracts entered into by KRG with external parties regarding oil exploration, extraction, export, and sale.

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