Iraqi Cabinet Approves Mechanism for Foreign Oil Companies and Kurdistan Oil Exports

Iraqi PM's media office

Iraqi Council of Ministers' meeting

At the conclusion of its session on Tuesday, 16 September 2025, the Iraqi Council of Ministers issued two key decisions concerning the operation of foreign oil companies and the resumption of oil exports from the Kurdistan Region.

The regular session, chaired by Prime Minister Mohammed Shia' al-Sudani, focused on resolving outstanding issues between the federal government and the Kurdistan Regional Government (KRG). According to information obtained by PUKMEDIA, the Council’s first decision addresses financial dues to companies: the $16 fee per barrel of oil produced in the Region will be paid to producing companies in proportion to output, rather than in cash.

The second decision grants preliminary approval to the tripartite contract between the federal government, the KRG, and the oil companies operating in the Region. The contract will be reviewed by the advisory committee at the federal Ministry of Oil, which is expected to issue its final opinion within 48 hours.

Analysts view these decisions as a significant step towards restarting oil exports from Kurdistan and resolving the longstanding disputes between Baghdad and the Region.



PUKMEDIA