Stalling Restart: The Standoff Over Iraqi Kurdish Oil Exports

The anticipated resumption of Kurdish oil exports from Iraq is facing delays, according to sources, despite the federal government's assurances of an immediate restart. The ongoing negotiations between Baghdad and the Kurdistan Regional Government have yet to resolve critical issues that have blocked oil flows to Turkey's Ceyhan port since March 2023.

Bringing new challenges to this impasse are recent drone attacks on regional oilfields, thought to be orchestrated by Iran-backed militias, which have disrupted operations. So far, oil output has reduced significantly due to these strikes, casting further doubt on when exports might resume.

While the Kurdistan Regional Government announced a tentative agreement with Baghdad, sources warn that no detailed financial plan has been finalized. Agreements are strained by the outstanding demands of oil companies, concerned over contract terms and unresolved debts totaling nearly $1 billion. With no entity yet claiming responsibility for the attacks, the situation remains precarious.

(With inputs from agencies.)