Channel8 has learned that crude oil production and exports will resume at the beginning of next month in the Kurdistan Region, while Gulf Keystone Petroleum has announced its readiness to resume operations and send crude oil to global markets.

When regional tensions escalated into a broader military confrontation in early 2026, energy infrastructure across Kurdistan was targeted by drone and missile strikes, leading to a severe reduction in oil output and forcing international companies to safely suspend operations.

Prior to the outbreak of the conflict, combined oil production from Iraq and the Kurdistan Region reached 4.5 million barrels per day (bpd), with Kurdistan contributing 314,000 bpd to that total.

KRG Source: Erbil and Baghdad Agree to Resume Oil Exports 

Speaking to Channel8 on the condition of anonymity, a source within the Kurdistan Regional Government (KRG) Council of Ministers stated on Monday that an agreement on the oil issue has been reached with the Iraqi government.

The source noted that production levels are targeting an average export of 200,000 barrels of oil per day.

Gulf Keystone Ready for Exports Following Security Guarantees

Jon Harris, CEO of Gulf Keystone Petroleum, stated that following guarantees provided by Iraqi Prime Minister Ali Faleh al-Zaidi, they are fully prepared to restart oil exports from the Kurdistan Region.

Iraqi government spokesperson Haider al-Aboudi yesterday declared that Baghdad provides full guarantees to international oil companies operating in the Kurdistan Region because the sector's stability is directly tied to the payment of regional public sector salaries.

The company emphasizes that its operational teams and financial resources are on standby, ensuring production and exports can instantly resume at full capacity once the regional situation stabilizes.

Additionally, Gulf Keystone's technical teams are implementing an active asset protection plan to ensure oil production resumes without delay as soon as conditions permit.

The operational timeline for restarting oil production in the Sheikhan field remains tied to the regional political situation, which currently shows clear signs of improvement.

Gulf Keystone Positions Sheikhan Field for Recovery 

Gulf Keystone Petroleum is one of the eight member companies participating in the Association of the Petroleum Industry of Kurdistan (APIKUR) operating in the Sheikhan field, where gross production had risen to over 44,000 barrels of crude oil daily just prior to the outbreak of the regional conflict in early 2026.

Gulf Keystone temporarily suspended oil production in Sheikhan in late February due to escalating regional conflicts, halting the company's primary revenue source and leaving field operations shut in until now.