By John Lee.
Oil exports from Iraq’s Kurdistan Region are set to resume through the Iraq-Turkey Pipeline (ITP) following agreements between Baghdad’s Federal Government, the Kurdistan Regional Government (KRG), and international oil companies, ending the prolonged export suspension.
DNO ASA will deliver the Kurdistan Regional Government’s share of production from its Tawke license, currently averaging 38,000 barrels daily, for export starting September 27. The company will continue selling its own 30,000 barrel daily allocation to local buyers at prices in the low $30s per barrel on a cash-and-carry basis.
Gulf Keystone Petroleum (GKP) announced that pipeline exports from its Shaikan Field will restart imminently, with the company expecting improved realized prices above $30 per barrel [approximately 39,000 IQD] during an interim period, compared to current local sales of $27-28 per barrel [approximately 35,100-36,400 IQD].
The Iraqi Ministry of Oil confirmed that all crude oil produced from Kurdistan fields, except quantities designated for local consumption, will be delivered to the State Oil Marketing Organization (SOMO) for export through the Iraq-Turkey Pipeline via Turkey’s Ceyhan port.
Under the interim agreements, which run until year-end, international oil companies will receive $14 per barrel after transportation cost deductions, with first payments expected mid-December. Genel Energy is also participating as DNO’s partner in the Tawke operations.
DNO Executive Chairman Bijan Mossavar-Rahmani announced a major production expansion program at the Tawke and Peshkabir fields, including eight new wells in 2026 targeting 100,000 barrels daily production to replace equipment damaged in July drone attacks.
Gulf Keystone CEO Jon Harris described the restart as “a historic milestone” that will be “transformative for the Company’s cash flow” while facilitating long-term investment in Kurdistan’s oil reserves.
The agreement operates under Iraq’s 2023-2025 Budget Law while maintaining Kurdistan’s Production Sharing Contracts, with a review by an international consultant planned for 2026 to evaluate commercial models and contracts.
Full statement from DNO:
Oslo, 26 September 2025 – DNO ASA, the Norwegian oil and gas operator, today announced that it been instructed to prepare for commencement of oil exports through the Iraq-Türkiye Pipeline on 27 September 2025, following agreements reached between the Federal Government of Iraq, the Kurdistan Regional Government and a group of international oil companies.
DNO accordingly will deliver the Kurdistan Regional Government’s share of sales from the Company’s operated Tawke license, currently averaging 38,000 barrels a day, for export. The balance of the oil, representing the share of sales the foreign contractor group consisting of DNO and Genel Energy International Limited, currently averaging 30,000 barrels a day, will continue to be sold to local buyers under existing contracts.
“DNO is pleased that exports of oil from the Kurdistan Region have been unlocked and will now flow to international markets,” said Executive Chairman Bijan Mossavar-Rahmani. “We have elected not to engage directly in exports at this time and will continue to sell our oil on a monthly, cash-and-carry, basis to our buyers at a per barrel price in the low USD 30s,” he explained.
“But we understand our buyers have set up their own arrangements to place oil purchased from us into the export pipeline, a move we welcome as it supports the larger export project,” Mr. Mossavar-Rahmani said.
The term of the current agreements between the Federal Government of Iraq, the Kurdistan Regional Government and those international oil companies which are participating ends at yearend, with the first payment of USD 14 per barrel (after deduction of transportation costs) expected in mid-December. That figure will be adjusted in 2026 based on an evaluation of “commercial models and contracts” by a Baghdad-designated consultant.
“DNO has just launched a major production expansion program at the Tawke and Peshkabir fields to replace equipment damaged during the July drone attacks, followed by the drilling of eight wells in 2026 targeting production of 100,000 barrels a day,” said Mr. Mossavar-Rahmani. “We can only support such an ambitious program with immediate, predictable and continuous flow of funds,” he said, “Maybe looking back we will have left some money on the table, maybe not, but surely we will generate significantly greater value from the investments we are making not just for us, but for all Iraqis,” he added.
Full statement from GKP:
Gulf Keystone is pleased to announce that the Company, along with several other International Oil Companies (“IOCs”) operating in the Kurdistan Region of Iraq (“Kurdistan”), has signed agreements with the Kurdistan Regional Government (“KRG”) and the Federal Government of Iraq (“FGI”) to enable the restart of international crude exports from Kurdistan.
Pipeline exports from the Shaikan Field are expected to restart in the coming days.
The agreements to restart Kurdistan crude exports are in full compliance with Iraq’s 2023-2025 Budget Law while maintaining the sanctity of Kurdistan’s Production Sharing Contracts (“PSCs”). The Budget Law provides for an interim period, currently anticipated to be around three months, during which IOCs will be compensated for exported production to cover the costs of production and transportation. As a result, the Company expects an improvement in Shaikan Field realised prices to above $30/bbl in this interim period compared to $27-28/bbl in local sales. Subsequently, a reconciliation to full PSC entitlement at international prices (adjusted for crude quality and transportation costs) is expected following a review of IOC invoices and contractual costs conducted during the interim period by an international independent consultant.
The Iraqi State Organization for Marketing of Oil (“SOMO”) will transport the crude from Fishkhabour in Kurdistan to Ceyhan in Türkiye while the KRG and the IOCs will market Kurdistan crude at the Kirkuk blend official selling price. The Company and other IOCs will be paid from the sale of their allocation at Ceyhan via a nominated trader who will deposit the sales proceeds into an escrow account at an international bank before the funds are disbursed to the IOCs. During the interim period, the Company will continue to engage with the KRG regarding a payment mechanism for the outstanding October 2022 to March 2023 receivable balance as part of broader ongoing negotiations to resolve other Shaikan commercial matters. A further announcement will be made if and when appropriate.
Jon Harris, Gulf Keystone’s Chief Executive Officer, said:
“The restart of Kurdistan crude exports via the Iraq-Türkiye Pipeline is a historic milestone for Gulf Keystone, Kurdistan and Iraq that is expected to unlock significant value for all stakeholders. A return to international sales prices will be transformative for the Company’s cash flow while we believe the signed agreements with the KRG and FGI, along with the Production Sharing Contracts, will facilitate long term profitable investment in Kurdistan’s oil and gas reserves, of which the Shaikan Field accounts for a significant portion. We are delighted to have reached this successful resolution and are looking forward to the future as we remain focused on driving value for Gulf Keystone shareholders.”
Full statement from the federal Ministry of Oil:
In the framework of ensuring that the federal government of the management of the national wealth achieves the highest levels of transparency and efficiency, the Ministry of Petroleum announces the reach of an agreement that eliminates the pumping and delivery of all crude oil produced from the fields located in the Kurdistan Region – except the quantities designated for local consumption – to the Iraqi Oil Marketing Company (SOMO), within Iraq to take over the company export through the Iraqi Turkish pipeline through the Turkish Jehan Port according to the original approved contexts, the Constitution, the texts of the Federal Public Budget Law and the decisions of the Federal Court.
This agreement comes as the result of recent efforts and ongoing research over the past months, it started from a common national vision aimed at strengthening Iraq’s role as a key player in the global energy market. Maintaining the sovereignty of Iraq and strictly defending its national interests and the rights of all Iraqis.
The agreement includes the establishment of clear technical and organizational mechanisms to ensure export efficiency and transparency commitment in oil revenues, which contribute to supporting the public finances of the state, increasing the federal budget incomes, which reflects positively on the ability of the government to implement service and development projects, and providing centers of economic stability for Iraq and its people from north to south and east to. Foreigner.
The Ministry renews its firm commitment to the management of oil resources according to the principle of national sovereignty and the highest interest of the country, by ensuring the fair distribution of wealth among all the Iraqi people, in accordance with the Constitution.
(Sources: DNO ASA, Gulf Keystone Petroleum, Iraqi Ministry of Oil)
