SOMO Kurdistan Oil Contracts End as Iraq’s State Oil Marketing Organization confirmed the termination of all previous agreements with regional buyers. The announcement, made Tuesday, signaled a shift toward unified management of crude oil across the country.
SOMO Director General Ali Nizar Al-Shatari explained that developments in the Kurdistan Region depend on operational agreements. Moreover, he emphasized that the law applies equally to all producers and buyers. Therefore, a new framework will guide future cooperation.
Al-Shatari noted that the Federal Ministry of Oil and the Kurdistan Region’s Ministry of Natural Resources now work within one framework. Crude produced in Kurdistan remains Iraqi oil, with differences only in management relations between the regional government and operators.
SOMO Kurdistan Oil Contracts End as both federal and regional governments advance discussions. According to Al-Shatari, companies and ministries must finalize the mechanism for implementing the Federal Budget Law. In addition, he confirmed that significant progress has already been achieved.
The resumption of exports through Turkey’s Ceyhan port remains a priority. Currently, crude from Kurdistan is consumed locally, with any surplus expected to be exported under the 2025 budget. SOMO has positioned itself to handle volumes once the regional government and producers deliver them.
Al-Shatari stressed that resuming exports would elevate Iraq’s standing in global markets. Furthermore, Europe’s energy needs remain high due to reduced Russian supplies. Iraqi crude, similar in grade to Russian oil, could fill part of this gap.
He clarified that, for now, SOMO has not received any shipments from Kurdistan’s Ministry of Natural Resources. Operating companies and the ministry maintain contracts until they reach final agreements.
Nevertheless, ongoing discussions aim to resolve these issues soon.
SOMO Kurdistan Oil Contracts End, but the path forward points to cooperation, stability, and restored prominence. Once exports resume, Iraq will reassert its role as a vital supplier to Europe’s energy markets.
