ERBIL, Kurdistan Region of Iraq – Kurdistan Region President Nechirvan Barzani on Saturday met with Iraqi Prime Minister Mohammed Shia’ al-Sudani, discussing the Region’s oil export resumption and the implementation of government programs in light of the recent amendments to the Federal Budget Law.

Barzani expressed the Kurdistan Region’s desire to resolve all outstanding issues with Baghdad and to continue cooperation with Baghdad “in a way that would support development, service provision, and establishment of stability across the country," according to a statement by the Kurdistan Region Presidency.

Both sides stressed the need to expedite the process of resuming Kurdish oil exports.

Sudani highlighted the importance of moving forward with the “joint agreements” between Erbil and Baghdad, in light of the recent amendments to the Federal Budget Law, emphasizing the need for the resumption of Kurdish oil exports through Turkey’s Ceyhan port.

“These measures serve national interest, strengthen Iraq’s economy, and meet the needs of its citizens,” a statement from Sudani’s offices cited the Iraqi premier as saying.

The amendments to the federal budget law involved Article 12 of the Iraqi federal budget, which states that Baghdad will reimburse Erbil for the production and transportation cost of one barrel of oil at the average cost of production and transportation of the federal oil ministry  – which was previously valued at $6.
 
The international oil companies (IOCs) had repeatedly stated that the value set out in the budget was way lower than their expenses. The modifications to the law set the cost of production and transportation of a barrel of oil at $16.

The law was published in the Iraqi Official Gazette on February 18, after being ratified by Iraqi President Abdul Latif Rashid, officially launching the amendment into effect. 

The Kurdistan Region’s oil exports have been halted since March 2023, dealing a major blow to Iraq and the Region's economy, with over $25 billion in lost revenue to date.

A report from Reuters on Friday, citing multiple sources “with direct knowledge of the matter,” claimed that US President Donald Trump’s administration has pressured Iraq to allow for the resumption of Kurdish oil exports, in a measure to offset the impact of cutting off Iranian exports which Trump has pledged to cut to zero under his “maximum pressure” campaign against Tehran.

Kurdish and Iraqi officials have repeatedly stated that exports would resume within the next month, but Ankara claims to have received no information in that regard as of yet.