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Home Kurdistan Politics

Iraq says foreign firms in Kurdistan obliged to transfer oil under deal

Editorial Team by Editorial Team
December 22, 2025
in Politics, Politics, Oil & Gas
Iraq says foreign firms in Kurdistan obliged to transfer oil under deal
SOMO Iraqi State Organization for Marketing of Oil, 2025. Photo: SOMO

BAGHDAD,— Iraq’s state oil marketing company SOMO said on Sunday that international oil producers operating in Kurdistan are still required to deliver their crude oil to the company under an export agreement reached in September, according to a statement issued by SOMO.

The statement came after comments made by Norway’s DNO, the largest foreign oil producer working in Kurdistan.

DNO said earlier that it would not take part in the September agreement and would instead continue selling crude directly to the Kurdistan region. The remarks were reported by Reuters.

According to SOMO, the September agreement was reached between Iraq’s oil ministry, the Kurdistan ministry of natural resources, and companies producing oil in the region.

Under the deal, SOMO is responsible for exporting crude produced from oil fields in Kurdistan through the Iraq Turkey pipeline.

At the time the agreement was announced, DNO publicly welcomed the arrangement but chose not to sign it.

The company said it needed clearer terms on how unpaid financial obligations would be settled.

DNO also said it had no immediate plans to ship oil through the Iraq Turkey pipeline and would continue sales directly within the semi-autonomous Kurdistan region.

SOMO said on Sunday that the Kurdistan ministry of natural resources has confirmed again its adherence to the September deal.

According to SOMO, the ministry stated that all international companies involved in exploration and production in Kurdistan’s oil fields must hand over the crude oil they produce to SOMO.

The only exception, SOMO said, applies to volumes set aside for local consumption inside the region.

The company said the agreement remains valid and binding for all producers active in the region.

Crude oil exports from Iraq’s Kurdistan region restarted on September 27, 2025 following a halt of more than two years, under a agreement involving the federal government in Baghdad, the caretaker Kurdistan Regional Government, and international oil companies.

(With files from Reuters)

Copyright © 2025 iKurd.net. All rights reserved.

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