Russian oil firms to restart Kurdistan projects after exports resume

Russian oil firms to restart projects in Iraqi Kurdistan — Workers at the Russia’s Rosneft oil company in Nefteyugansk, Russia. Photo: Reuters

MOSCOW,— The Iraqi Kurdistan Regional Government (KRG) and Iraq’s federal government have resolved their long-standing oil dispute, clearing the way for Russian energy companies to restart their operations in the region, Russia’s Energy Minister Sergei Tsivilev said, according to TASS news agency.

Among the companies affected was Russia’s largest oil producer, Rosneft, which had previously suspended operations due to security concerns. The company had been conducting work near the Syrian border before halting certain activities.

The resumption of Kurdish oil exports has been a central issue in negotiations between the KRG and Baghdad. Iraqi Oil Minister Hayan Abdel-Ghani stated on Monday that Iraq was awaiting approval from Turkey to resume oil flows from the Kurdistan region. He expressed optimism that exports could restart within a few days.

Tsivilev said he had received confirmation that the dispute between Baghdad and the KRG had been resolved, according to TASS.

“This is a significant development for us because Russian companies have invested heavily in the region. However, due to disagreements between the federal government and the Kurdistan region, those projects were put on hold,” he was quoted as saying.

Meanwhile, Russia’s state-owned energy company Zarubezhneft is also looking to return to Iraq, according to a report from Interfax news agency. The company withdrew from the country in the early 1990s following Saddam Hussein’s invasion of Kuwait.

Several international oil companies operating in Iraq’s Kurdistan region said they would not resume oil exports through Turkey’s Ceyhan port on Friday, despite Baghdad’s announcement that a restart was imminent.

The United States has been urging Iraq to permit Kurdish oil exports through Turkey, a move that could increase global supply at a time when Washington is seeking to curb Iranian oil sales as part of its economic pressure strategy.

Iraq, which maintains ties with both the U.S. and Iran, remains cautious about becoming entangled in geopolitical tensions. Tehran views Iraq as a crucial economic partner as it navigates U.S. sanctions.

Last week, Iraqi Oil Minister Hayan Abdel-Ghani indicated that the halted pipeline would soon be operational again.

On Friday, the government said it was preparing to announce the resumption of exports, with an initial volume of 185,000 barrels per day (bpd) to be transported via Iraq’s state oil marketer SOMO. Officials suggested that the volume would gradually increase over time.

However, the Association of the Petroleum Industry of Kurdistan (APIKUR), representing companies responsible for 60% of the region’s oil production, stated that no formal agreements had been reached to clarify commercial terms or ensure payments for both past and future exports.

“To be clear, APIKUR member companies will not resume oil exports today,” said Myles Caggins, a spokesperson for APIKUR. The association includes key oil firms such as Gulf Keystone Petroleum, DNO, Genel Energy, and ShaMaran Petroleum.

(With files from Reuters | TASS)