The tripartite agreement between the Kurdistan Regional Government (KRG), the Iraqi government, and oil companies is expected to be signed early next week. Following months of talks and a preliminary agreement, the pact will allow the resumption of oil exports from the Kurdistan Region to global markets.

Speaking to Channel8, a source in the Iraqi Oil Ministry said that on Thursday night, the Ministry of Natural Resources and oil companies met to review Baghdad’s comments and approved them. The source outlined the main points of the agreement:

• Oil exports: Any amount of oil exceeding domestic consumption will be exported.

• Domestic needs: 50,000 barrels per day will be allocated for the domestic needs of the Kurdistan Region.

• Financial entitlements of companies: The Iraqi government will be responsible for paying the financial entitlements of oil companies, estimated at $16 per barrel, as included in the budget law.

Channel8 has learned that the Iraqi government, through the Iraqi Oil Marketing Company (SOMO), has completed all necessary preparations to resume exports.

The source told Channel8, “If no problems arise and a trilateral agreement is signed early next week, oil exports will resume immediately.”

Expert Advisory Team to Ensure Transparency

Following the signing of the agreement, an expert advisory team is expected to review all corporate operating provisions and contracts.

This move aims to ensure transparency and streamline communication between all parties in the future. The oil companies have emphasized the need for a legal guarantee to receive their financial entitlements, which this tripartite agreement addresses.

Economic Impact and Salary Relief for KRG Employees

The source expressed hope that no party will obstruct the process, stating, “This process is in the interest of the Iraqi people in general and the Kurdistan Region in particular,"

"The resumption of oil exports and the return of revenues is a key part of resolving the salary problem of KRG employees and reducing the economic burden caused by the suspension of exports," the source added.

Months of Negotiations Lead to Consensus

On September 16, Channel8 revealed details of the oil issue and the agreement between Erbil and Baghdad, which was confirmed by two senior KRG officials.

The Iraqi government, particularly the Iraqi Oil Ministry, had sent a draft agreement to the Kurdistan Region.

The draft, under discussion for three months, was referred to as a tripartite agreement between the Iraqi government, the KRG, and oil-producing companies. After receiving the draft, the KRG expressed its readiness to hand over its oil production to SOMO.

Channel8 reported that the draft included the demands of both the Kurdistan Region and the Iraqi government. Minor comments from oil companies have now been resolved.

KRG Keeps 50,000 Barrels for Domestic, Shares Rest with SOMO and Companies

The agreement is based on previous contracts between the Kurdistan Region and oil companies, with 60 percent of oil produced allocated to the KRG and 40 percent to the companies. Of the 60 percent allocated to the KRG, 50,000 barrels are for domestic.

The KRG has reached 230,000 barrels of oil per day. Of these 230,000 barrels, the Kurdistan Region will return 50,000 to the domestic market. The remaining 180,000 barrels of oil, of which 60 percent (100,000 barrels) will be delivered to SOMO and the remaining 80,000 barrels will be shared by companies.