Iraq’s Kurdish oil exports restart is not imminent

A restart of Iraq's Kurdish oil exports is not imminent, sources close to the matter said on Friday, despite Iraq's federal government saying on Thursday that shipments would resume immediately. (AFP/File)
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Updated 18 July 2025
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Iraq’s Kurdish oil exports restart is not imminent

  • Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said
  • Oilfields in Iraqi Kurdistan have been attacked by drones this week

BAGHDAD/LONDON: A restart of Iraq’s Kurdish oil exports is not imminent, sources close to the matter said on Friday, despite Iraq’s federal government saying on Thursday that shipments would resume immediately.

Baghdad and the Kurdistan Regional Government have been in negotiations since February to end a stand-off that has halted flows from the north of the country to Turkiye’s port of Ceyhan. The KRG was producing about 435,000 barrels per day (bpd) before the pipeline closure in March 2023.

On Thursday the federal government said that Iraqi Kurdistan would resume oil exports immediately through the pipeline to Turkiye despite drone attacks that have shut down half of the region’s output.

But on Friday a source at APIKUR, a group of oil companies working in Kurdistan, said that a restart depended on the receipt of written agreements. Another at KAR Group, which operates the pipeline, said that no preparations had been made for a restart.

Baghdad and the companies have not yet agreed how to restart the exports, a KRG government source said, while a source at Turkiye’s Ceyhan said there was also no preparation at the terminal for a restart of flows.

On Thursday, a statement from KRG Prime Minister Masrour Barzani said the government had approved a joint understanding with the federal government and it was awaiting financial details.

Similar agreements in the past failed to secure a resumption in exports and it remains unclear if this deal will succeed.

Oil companies working in Kurdistan have previously demanded that their production-sharing contracts should remain unchanged and their debts of nearly $1 billion be settled under any agreement.

On Friday Genel Energy and Gulf Keystone Petroleum declined to comment, while DNO, Hunt Oil and HKN Energy did not immediately respond to requests for comment.

DRONE ATTACKS
Oilfields in Iraqi Kurdistan have been attacked by drones this week, with officials pointing to Iran-backed militias as the likely source of the attacks, although no group has claimed responsibility.

They are the first such attacks on oilfields in the region and coincide with the first attacks in seven months on shipping in the Red Sea by Iran-aligned Houthi militants in Yemen.

On Thursday a strike hit an oilfield operated by Norway’s DNO in Tawke, the region’s counter-terrorism service said.

It was the week’s second strike on a site operated by DNO, which operates the Tawke and Peshkabour oilfields in the Zakho area that borders Turkiye.

No casualties have been reported, but oil output in the region has been cut by between 140,000 bpd and 150,000 bpd, two energy officials said.


Military drone attack on Sudan oil field kills dozens and threatens South Sudan’s economic lifeline

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Military drone attack on Sudan oil field kills dozens and threatens South Sudan’s economic lifeline

  • RSF said the oil field in Heglig was attacked a day after they seized the facility near the border with South Sudan
  • South Sudanese soldiers were among the dead in the attack by an Akinci drone

JUBA: Dozens of people were killed Tuesday evening in a drone strike near Sudan’s largest oil processing facility carried out by the Sudanese Armed Forces, according to the paramilitary Rapid Support Forces.
The RSF, which has been fighting Sudan’s military since 2023, said the oil field in Heglig was attacked a day after the RSF seized the facility near the border with South Sudan.
Both sides told The Associated Press that the exact number of dead and wounded could not immediately be confirmed. Local news outlets reported seven tribal leaders and “dozens” of RSF troopers were killed.
South Sudanese soldiers were among the dead in the attack by an Akinci drone, according to the RSF, which condemned the attack as a violation of international law.
Two Sudanese military officials confirmed the drone strike, which they said targeted RSF fighters.
The government of South Sudan’s Unity State confirmed three South Sudanese soldiers were killed. A South Sudanese solider, who witnessed the strike and spoke on condition of anonymity because he was not authorized to speak, estimated 25 people were killed.
South Sudanese commander Johnson Olony said in a statement that South Sudanese forces may have been sent to secure Heglig after its capture. South Sudan’s military spokesperson declined to comment.
South Sudan relies entirely on Sudanese pipelines to export its oil and has seen production repeatedly disrupted by the conflict, worsening its economic crisis.
Sudanese soldiers and oil workers began evacuating Heglig on Monday and the RSF took control of the facility without resistance. By Tuesday, about 3,900 Sudanese soldiers had surrendered their weapons to South Sudanese forces after crossing into Rubkona County, according to Unity State’s information ministry.
Video from South Sudan’s state broadcaster showed tanks, armored personnel carriers and artillery among the weapons handed over.
Thousands of civilians from Sudan began crossing the border into South Sudan on Sunday and were still arriving Wednesday, the South Sudan government said, adding that the exact number was not yet known. South Sudan insists it remains neutral in the conflict despite accusations of siding with the RSF.
Heglig’s capture is the latest in a string of RSF territorial gains, including the October fall of el-Fasher, the capital of North Darfur and the Sudanese army’s last stronghold in Darfur. The war, which began in April 2023, has killed an estimated 150,000 people, displaced millions and triggered multiple famines. Both sides face allegations of atrocities.
The capture of Heglig, a vital state asset, could be a significant bargaining chip for the RSF, analysts said. But the opaque nature of oil finances makes it difficult to determine how much the SAF, RSF or South Sudan will be impacted economically over the short term.