The Kurdistan Region announces an agreement with the federal government on the oil export mechanism.

[RJG]

The Kurdistan Region announces an agreement with the federal government on the oil export mechanism.

23 hours ago

 

S

Erbil - WAA

The Kurdistan Regional Government's Ministry of Natural Resources announced on Wednesday that it had reached an agreement with the federal government on the mechanism for oil exports.

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The ministry said in a statement received by the Iraqi News Agency (INA): "An agreement has been reached with the Iraqi Ministry of Oil regarding the oil export mechanism," noting that "the agreement was signed by 23 delegations from both sides, including 17 members from the Iraqi Ministry of Oil."

She stated, "The meetings began on July 17, and during this period, all fields in the Kurdistan Region were visited. After assessing the technical issues in many of the discussions, an agreement was reached on August 11 regarding the oil export mechanism."

She stressed that "after securing and collecting 50,000 barrels of oil to meet local needs, the remainder will be delivered to the State Oil Marketing Organization (SOMO) for export," noting that "the resumption of Kurdistan Region oil exports will remain contingent on the federal government's talks with the Turkish

government, so that the process can be effectively implemented," according to the statement.

https://ina.iq/ar/economie/240862-.html

[screwball]

and this is all we need.....

[Shedagal]

12 hours ago, screwball said:

and this is all we need.....

HCL?

[sharkcatcher]

Not the HCL

Part of the HCL is where all Iraq citizens receive a monthly check for all the oil revenues that Iraq produces. I saw nothing about that in the agreement today.

[NoviceInvestor]

🤔

[keylime]

Any agreement is a step in the right direction. "Which way that is...I have no idea." 

[Theseus]

On 8/16/2025 at 2:29 AM, sharkcatcher said:

Not the HCL

Part of the HCL is where all Iraq citizens receive a monthly check for all the oil revenues that Iraq produces. I saw nothing about that in the agreement today.

The part where each citizen receives proceeds from the sale of oil is in the Constitution but that article has yet to be implemented. It is not part of the HCL or the IOGL. However, when the IOGL is passed (the remaining bits) then the article will be triggered. The HCL is not the IOGL as it is something totlly different between only Erbil and Baghdad not the entire country.

[screwball]

On 8/15/2025 at 8:34 AM, Shedagal said:

HCL?

already have national oil company law and somo, this forms the financial part of the law, the payment mechanism as per previous articles

[screwball]

remember the  national pol company law was reactivated since 1976......this % was sticking point back in 2013...we were waiting on final amendment to be voted on

[Dretown39]

5 hours ago, Theseus said:

The part where each citizen receives proceeds from the sale of oil is in the Constitution but that article has yet to be implemented. It is not part of the HCL or the IOGL. However, when the IOGL is passed (the remaining bits) then the article will be triggered. The HCL is not the IOGL as it is something totlly different between only Erbil and Baghdad not the entire country.

@Theseus Just curious. I hear about the HCL. What is the IOGL?

[sharkcatcher]

Well, now I'm confused. I had always heard that one of the main sticking points was the profit sharing. 

 

Yes, Iraq HCL does provide profit-sharing agreements for Iraqi citizens in the oil and gas sector. During recent rounds of contracts, Iraq has embraced profit-sharing agreements, offering both Exploration, Development, and Production Contracts and Development and Production Contracts for gas and oil fields. This indicates that profit-sharing is a part of the agreements made with Iraqi citizens. 

 

United States Institute of Peace

 

Maybe someone smarter than me can explain....just trying to understand. 

[ametad]

Positive news for the region. 

[Theseus]

2 hours ago, Dretown39 said:

@Theseus Just curious. I hear about the HCL. What is the IOGL?

HCL => Hydrocarbon Law

IOGL -> Iraqi Oil and Gas Law 

 

Not the same law.

[Theseus]

2 hours ago, Dretown39 said:

@Theseus Just curious. I hear about the HCL. What is the IOGL?

HCL => Hydrocarbon Law REGIONAL (Mainly with KRG)

IOGL -> Iraqi Oil and Gas Law NATIONAL

 

The HCL is a REGIONAL law created in three months after the war it is mainly aimed at the KRG. The IOGL is a NATIONAL law for all of the country of Iraq.  The "profit-sharing" agreement in Iraq is mainly found within the IOGL as it appears in the country's constitution. 

 

The Oil and Gas Law goes beyond the Constitution in terms of the powers it vests in
federal government. The law implies that the regions have ceded some of their
constitutionally permitted powers to the federal government in order to maximise
return to everyone. 

 

Constitutional discussions to date have been mired in a fierce debate over whether
various other articles vest more ‘ownership’ of oil resources at the regional or federal
level. By placing article 111 at the centre of Iraq’s new oil law, with the backing of all
major political actors, the new law places ownership over Iraq’s natural resources
with all Iraqi citizens.

 

The law also affirms the main premise of the hydrocarbon legal framework by stating
as its goal ‘the control over oil and gas in a way that guarantees the fair distribution of
their returns to the people’.'

 

The Iraqi National Oil Company (INOC) in the IOGL replaced the existing National Oil Company upon passage of that part of the IOGL as someone had stated earlier. That part is a bit confusing but its in the NATIONAL IOGL law to disband the old oil company and form the new one. Yes Iraq has had a National Oil Company for a very long time. Think of it more like a restructuring of a company than a replacement and you won't be so confuzzled.  

 

I am also going to mention one other law that needs to be watched for in all of this although it may be absorbed into a new IOGL draft and that is:

 

The Financial Resources Law similarly contains several key transparency provisions
(Art. 6). It establishes a Commission on Monitoring the Federal Financial Resources
tasked with ensuring transparency and disclosure in financial operations ‘in
accordance with international accounting standards’. The Commission is to use an
international accounting firm to audit the Financial Resources Fund’s external and
internal activities and to file reports with the Council of Ministers, the Council of
Representatives and the legislative councils of the regions, providing ‘all data related
to the funds and activities of the Fund regarding deposits and withdrawals’ and
expressing its opinion about these activities. An annual report of these activities
would also be made public (though the manner of publication is left unclear). 

 

 

 

Not the same law.

[Theseus]

1 hour ago, sharkcatcher said:

Well, now I'm confused. I had always heard that one of the main sticking points was the profit sharing. 

 

Yes, Iraq HCL does provide profit-sharing agreements for Iraqi citizens in the oil and gas sector. During recent rounds of contracts, Iraq has embraced profit-sharing agreements, offering both Exploration, Development, and Production Contracts and Development and Production Contracts for gas and oil fields. This indicates that profit-sharing is a part of the agreements made with Iraqi citizens. 

 

United States Institute of Peace

 

Maybe someone smarter than me can explain....just trying to understand. 

You are somewhat right but its mainly for the KRG peoples not for ALL of the Iraqi peoples/ Why do you think whenever the HCL is brought up in an article, the KRG or Erbil is also brought up? Simple fact the HCL is a regional law under the IOGL  aimed at the Kurds. Remember Kurdistan is part of Iraq but its mainly a autonomous region within Iraq and sometimes, not always, must be dealt with separately. The HCL does have profit sharing agreements in it but that is only for the Kurds and not the whole of the Iraqi peoples. It is why this is so confusing to most people as they think the Kurds are part of Iraq and they are but they have their own regional government that Baghdad must deal with separate from other regions in Iraq. Hence, the profit sharing agreement found within the HCL only applies to the Kurds not to the whole of the Iraqi peoples. That is found in their Constitution and the IOGL once it becomes law. And why I have said they are delaying the passage of the IOGL because its passage triggers the oil revenue sharing with its people. 

[Theseus]

To answer a follow up question, No. THe Kurds will be paid according to their agreement in the HCL a regional law aimed at them than from the IOGL. This also satisfies the Iraqi Constitution.

[Dinarrock]

15 minutes ago, Theseus said:

To answer a follow up question, No. THe Kurds will be paid according to their agreement in the HCL a regional law aimed at them than from the IOGL. This also satisfies the Iraqi Constitution.

I am sure you have answered this before but do you believe the RV hold up is because of the HCL agreement? I for one do not but your knowledge and research by your posts show more thought and wisdom than most!

[Theseus]

2 minutes ago, Dinarrock said:

I am sure you have answered this before but do you believe the RV hold up is because of the HCL agreement? I for one do not but your knowledge and research by your posts show more thought and wisdom than most!

No I stated why I believe the holdup for the passage of the IOGL. I know on here there was a common understanding that the RV would not happen without passage of the IOGL. The hold up of the HCL is simple ... Erbil wants more than what Baghdad is willing to offer them.  That has always been the holdup for the regional law called the HCL. I have stated before Iraq does not need to pass the IOGL to RV. It can RV anytime the IMF says it is okay. IOGL and HCL are internal to Iraq and really has nothing to do with with external influences governing Iraq. Which is the reason why the RV is not being held up by either law. The holdup has more to do with its investing portfolio than it does with its oil policies. People are focused on the IOGL/HCL for good reason because Adam told them to be. However in my view it became clear that the IOGL was not the main obstruction. I still believe that the RV can happen and will happen without the IOGL's full passage into law. I know that goes against the owner of this forum but its a gentleman's disagreement on that note. If the IOGL passes is the RV immediately imminent? Well does dark clouds in the sky always portend rain will be falling on you? 

[sharkcatcher]

Theseus,

 

  That does clear up my misunderstanding...Thank you

[Dretown39]

3 hours ago, Theseus said:

HCL => Hydrocarbon Law REGIONAL (Mainly with KRG)

IOGL -> Iraqi Oil and Gas Law NATIONAL

 

The HCL is a REGIONAL law created in three months after the war it is mainly aimed at the KRG. The IOGL is a NATIONAL law for all of the country of Iraq.  The "profit-sharing" agreement in Iraq is mainly found within the IOGL as it appears in the country's constitution. 

 

The Oil and Gas Law goes beyond the Constitution in terms of the powers it vests in
federal government. The law implies that the regions have ceded some of their
constitutionally permitted powers to the federal government in order to maximise
return to everyone. 

 

Constitutional discussions to date have been mired in a fierce debate over whether
various other articles vest more ‘ownership’ of oil resources at the regional or federal
level. By placing article 111 at the centre of Iraq’s new oil law, with the backing of all
major political actors, the new law places ownership over Iraq’s natural resources
with all Iraqi citizens.

 

The law also affirms the main premise of the hydrocarbon legal framework by stating
as its goal ‘the control over oil and gas in a way that guarantees the fair distribution of
their returns to the people’.'

 

The Iraqi National Oil Company (INOC) in the IOGL replaced the existing National Oil Company upon passage of that part of the IOGL as someone had stated earlier. That part is a bit confusing but its in the NATIONAL IOGL law to disband the old oil company and form the new one. Yes Iraq has had a National Oil Company for a very long time. Think of it more like a restructuring of a company than a replacement and you won't be so confuzzled.  

 

I am also going to mention one other law that needs to be watched for in all of this although it may be absorbed into a new IOGL draft and that is:

 

The Financial Resources Law similarly contains several key transparency provisions
(Art. 6). It establishes a Commission on Monitoring the Federal Financial Resources
tasked with ensuring transparency and disclosure in financial operations ‘in
accordance with international accounting standards’. The Commission is to use an
international accounting firm to audit the Financial Resources Fund’s external and
internal activities and to file reports with the Council of Ministers, the Council of
Representatives and the legislative councils of the regions, providing ‘all data related
to the funds and activities of the Fund regarding deposits and withdrawals’ and
expressing its opinion about these activities. An annual report of these activities
would also be made public (though the manner of publication is left unclear). 

 

 

 

Not the same law.

@Theseus Thank you!

[screwball]

6 hours ago, Theseus said:

I still believe that the RV can happen and will happen without the IOGL's full passage into law.

sooner or later....

[HowieC]

[Dinarrock]

23 hours ago, Theseus said:

No I stated why I believe the holdup for the passage of the IOGL. I know on here there was a common understanding that the RV would not happen without passage of the IOGL. The hold up of the HCL is simple ... Erbil wants more than what Baghdad is willing to offer them.  That has always been the holdup for the regional law called the HCL. I have stated before Iraq does not need to pass the IOGL to RV. It can RV anytime the IMF says it is okay. IOGL and HCL are internal to Iraq and really has nothing to do with with external influences governing Iraq. Which is the reason why the RV is not being held up by either law. The holdup has more to do with its investing portfolio than it does with its oil policies. People are focused on the IOGL/HCL for good reason because Adam told them to be. However in my view it became clear that the IOGL was not the main obstruction. I still believe that the RV can happen and will happen without the IOGL's full passage into law. I know that goes against the owner of this forum but its a gentleman's disagreement on that note. If the IOGL passes is the RV immediately imminent? Well does dark clouds in the sky always portend rain will be falling on you? 

Thank you again my thoughts exactly!!!

[RJG]

Erbil, Baghdad close to ‘broader framework’ on oil exports: Source

16-08-2025

Rudaw

ERBIL, Kurdistan Region - Erbil and Baghdad are close to finalizing a “broader framework” on oil exports, a source from Iraq’s Oil Ministry told Rudaw on Saturday.

"An agreement has been reached between Erbil and Baghdad on the handover and resumption of oil exports, but the agreement needs a broader framework and that is expected to be completed in the coming days,” said the source.

The two sides have agreed on a mechanism to resume the Kurdistan Region’s oil exports that have been stopped since March 2023, though further talks with Turkey are still needed, the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources announced Wednesday.

Under that deal, the KRG will keep 50,000 barrels per day for domestic consumption and transfer the rest to Iraq’s State Oil Marketing Organization (SOMO) for export through the Iraq-Turkey pipeline. The agreement was reached after months of negotiations.

Following the announcement, Amer Khalil Ahmed, head of the North Oil Company that operates under the Oil Ministry, told Rudaw that the KRG’s Ministry of Natural Resources will meet with oil producers on Saturday.

Control over oil resources has long been a source of tension between Erbil and Baghdad.

Last week, Iraq’s Oil Ministry said that it is “committed” to receiving 230,000 barrels per day from the Kurdistan Region under an earlier agreement reached in July.

“The Kurdistan Regional Government has not yet delivered oil to the Oil Ministry or SOMO,” the federal ministry source told Rudaw on Saturday.

In return for Erbil handing over its oil, Baghdad pledged to release delayed funds to cover the salaries of Kurdistan Region’s public sector employees. The federal government has transferred 975 billion dinars (around $737 million) to cover May wages, but June and July salaries remain unpaid due to technical and financial disputes.

Exports through the Iraq-Turkey pipeline have been suspended since March 2023, after a Paris-based arbitration court ruled that Turkey violated a 1973 pipeline agreement by allowing the KRG to independently export oil since 2014.

https://www.rudaw.net/english/middleeast/iraq/16082025

[Theseus]

9 hours ago, RJG said:

Exports through the Iraq-Turkey pipeline have been suspended since March 2023, after a Paris-based arbitration court ruled that Turkey violated a 1973 pipeline agreement by allowing the KRG to independently export oil since 2014.

 

Don't forget the new Development Road (Silk Road) is also supposed to develop a pipeline for oil into Turkey from the Basra Port. By tapping into the line near Kurdistan Region of Iraq, that will make the exportation of oil all that much easier for all of the regions of Iraq not just for the Kurds. The Development Road will include an oil pipeline, a road and a railway system mainly for cargo but will also ferry people across the country. Think of the Development Road more like a a cross continent highway from border to border like Interstate 40 (going from the Atlantic Ocean in NC to the Pacific Ocean in California).