Oil companies resume work in Kurdistan starting tomorrow, following a directive issued Wednesday by Iraqi Prime Minister Ali Faleh Al-Zaidi. The decision aims to boost oil production and compensate for economic losses caused by disruptions to exports through the Strait of Hormuz.
The announcement came after a meeting between the prime minister and a delegation from the Kurdistan Regional Government, led by Natural Resources Minister Kamal Mohammed Salih, along with representatives of several international oil companies operating in the region.
Meeting with KRG and International Firms
According to a statement from the Prime Minister’s Media Office, Al-Zaidi received the Kurdistan Regional Government delegation in Baghdad, in the presence of the Minister of Foreign Affairs, the Minister of Oil, and the Chief of Staff of the Army.
During the meeting, the prime minister listened to a detailed briefing on the operating conditions of oil companies in the Kurdistan Region, particularly in light of recent security developments linked to the regional conflict. Discussions also focused on mechanisms to ensure the rapid resumption of company activities.
A separate statement from the Council of Ministers confirmed that the meeting addressed challenges faced by foreign oil firms and explored practical steps to restart operations as soon as possible.
Directive to Ensure Safe and Stable Operating Conditions
The prime minister directed relevant authorities to provide all necessary requirements to secure the operations of oil companies in the Kurdistan Region.
He emphasized the importance of joint coordination between the federal government and the Kurdistan Regional Government to create a suitable and secure environment for companies to continue their work without interruption.
Key priorities outlined include:
– Securing operational sites and infrastructure.
– Addressing administrative and logistical obstacles.
– Facilitating the swift return of foreign oil firms to full activity.
Economic Losses from Export Disruptions
Al-Zaidi noted that Iraq has suffered significant economic damage due to the suspension of oil exports through the Strait of Hormuz and broader disruptions affecting regional shipping routes.
He stressed that compensating for these losses requires intensified efforts to increase production and resolve issues that hinder the oil sector’s expansion.
The resumption of foreign oil companies’ activities in the Kurdistan Region is seen as a critical step toward restoring export capacity and stabilizing national revenues, as oil remains Iraq’s primary source of income.
Focus on Boosting Production and Exports
The prime minister reaffirmed that restarting operations in the Kurdistan Region is part of a broader strategy to strengthen oil output and resume exports from the region.
He underscored the need for coordinated action to overcome obstacles facing the oil sector, particularly amid regional instability that has affected energy markets and supply chains.
The decision reflects ongoing efforts by Baghdad to safeguard Iraq’s energy infrastructure and maintain production levels despite external challenges.
Conclusion:
The directive that oil companies resume work in Kurdistan marks a significant move to restore stability in Iraq’s energy sector. As the government works to offset export losses and reinforce production, coordination between Baghdad, Erbil, and international oil firms will be central to sustaining output and protecting national revenues.
