As part of ongoing efforts to resolve disputes between the Kurdistan Regional Government (KRG) and the Federal Government of Iraq, the KRG’s Acting Minister of Natural Resources announced that Iraq’s SOMO company has agreed to provide guarantees to international oil companies.

However, while SOMO insists companies must revert to Iraqi law in case of disputes, the oil companies demand recourse to international law.

Dr. Kamal Mohammed, the Acting Minister of Natural Resources, stated that “significant progress has been made on the issue of oil exports” and after Baghdad increased its oil production, the companies, the Ministry of Oil, and the Ministry of Natural Resources agreed to assign the British firm Wood Mackenzie to assess production declines in the Kurdistan Region.

The Acting Minister added that on August 11 an agreement was reached on oil exports, with companies requesting guarantees for their entitlements. While the federal government previously insisted that the Kurdistan Region provide those guarantees, “now the Ministry of Oil has shown approval for SOMO to provide them.”

Regarding the unresolved legal issue, Kamal Muhammad explained:

“On August 29, a draft agreement was circulated and all three sides agreed to it. Only one clause remains: in case of disputes, the Ministry of Oil insists on Iraqi law, while the companies demand international law. On September 2, the Kurdistan Regional Government submitted this request to Baghdad and is awaiting a response.”

In conclusion, the Minister stressed that no other obstacles remain for resuming exports. Current oil production in the Kurdistan Region is 230,000–240,000 barrels per day, compared to 280,000 barrels per day before the drone attacks.