Iraq’s federal government and the Kurdistan Region have reached a long-awaited deal to regulate crude oil exports, the Oil Ministry said on Thursday, ending years of disputes that disrupted flows.

Under the agreement, all crude produced in the Kurdistan Region - except volumes reserved for local consumption - will be handed over to Iraq’s State Oil Marketing Organisation (SOMO) for export via the Iraq–Turkey pipeline to the Ceyhan terminal.

The ministry said the deal establishes “clear technical and regulatory mechanisms” to ensure uninterrupted exports, revenue transparency and fair distribution of national wealth, which will strengthen public finances and support economic stability.

Prime Minister Mohammed Shia al-Sudani hailed the deal as “historic,” saying it fulfills an 18-year aspiration to unify oil policy. “This ensures fair distribution of wealth, diversifies export outlets and encourages investment,” he wrote on X.

On Monday, Zawya Projects reported that SOMO reached a deal with Turkish companies to resume flows, while the Kurdistan Regional Government (KRG) finalised a parallel revenue-sharing agreement with Baghdad covering oil and non-oil income.

Read more: Turkey wants full use of Kirkuk–Ceyhan pipeline - Is Iraq interested?

(Writing by Majda Muhsen; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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