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Iraqi PM orders resumption of oil companies' operations in Kurdistan Region

Jun. 03, 2026 • 2 min read
Image of Iraqi PM orders resumption of oil companies' operations in Kurdistan Region Iraqi Prime Minister Ali al-Zaidi (center) receiving the KRG delegation on June 3, 2026. Photo: Iraqi PMO

Ali al-Zaidi "directed the provision of all requirements that contribute to securing the operations of the oil companies operating in the Region" and "directed the oil companies in the Kurdistan Region of Iraq to resume their operations starting tomorrow, emphasizing joint work and the provision of a suitable environment and essential supplies."

ERBIL, Kurdistan Region of Iraq - A delegation of Kurdistan Regional Government (KRG) officials met with Iraqi Prime Minister Ali al-Zaidi in Baghdad on Wednesday to discuss oil exports, with the premier directing measures to secure "the operations of the oil companies operating in the Region" and ordering their resumption of operations "starting tomorrow."

 

The KRG delegation, spearheaded by the Kurdistan Region's Minister of Natural Resources Kamal Mohammed, was accompanied by representatives of oil companies that operate in the Region, with the meeting carried out in the presence of the Iraqi foreign minister, oil minister, and army chief of staff.

 

Zaidi "listened to a detailed briefing on the operating conditions of the oil companies, amid the recent events stemming from the war that the region has witnessed, in addition to presenting a comprehensive vision regarding the resumption of those companies' operations in the shortest possible time," the premier's office said in a statement.

 

The breakout of the US-Israeli war on Iran in late February has had severe effects on the Kurdistan Region and Iraq's oil exports, with Zaidi pointing out "that the damage inflicted on Iraq as a result of the suspension of oil exports through the Strait of Hormuz was significant" and "necessitates doubling efforts to compensate for that damage by addressing the problems that hinder increased production."

 

To this end, Zaidi "directed the provision of all requirements that contribute to securing the operations of the oil companies operating in the Region" and "directed the oil companies in the Kurdistan Region of Iraq to resume their operations starting tomorrow, emphasizing joint work and the provision of a suitable environment and essential supplies."

 

In addition to the imposition of Iranian restrictions on the Strait of Hormuz, which has resulted in Iraqi oil revenues plummeting $6 billion in February to just over $1 billion in April, the Kurdistan Region's production has been hampered by repeated attacks orchestrated by pro-Iran Iraqi militias, leading Erbil to repeatedly demand that Baghdad rein in such factions' activities.

 

Zaidi has made the restriction of weapons to the state a key pillar of his new program for government, with multiple pro-Iran armed groups, including Asaib Ahl al-Haq and Kataib al-Imam Ali, having agreed to disengage from the Popular Mobilization Forces (PMF) and support the process.

 

Amid the backdrop of the regional conflict, the KRG and the Iraqi government in March forged an agreement to export oil via Turkey's Ceyhan port, with  Kurdistan Region President Masrour Barzani saying at the time that Erbil requested guarantees from the Iraqi federal government to protect Kurdish citizens and stop "outlaw groups and forces that continuously attack the Kurdistan Region with drones."

 

 

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