Iraq, KRG extend oil export framework to March ahead of budget talks

Kurdish oil to keep flowing for three more months-

Oil flows, clock is ticking: Iraq and the Kurdistan Regional Government (KRG) agreed to a three-month extension of the oil export framework, keeping Kurdish crude flowing to Turkey’s Ceyhan port through 31 March. The extension will maintain a fragile interim status quo, with over 200k bbl / d currently marketed by the Iraqi federal authorities — up from the 190k bbl / d target set when flows resumed in September.

REMEMBER- Under the current framework, international oil companies operating in Kurdish oil fields receive a flat fee of USD 16 / bbl — a temporary compromise that ended a two-year operational deadlock but remains below the production costs claimed by several major operators.

The bigger picture: The extension is about more than just oil flows — the 31 March marks a strategic countdown to a standoff between the KRG and the federal government over budget allocation. Baghdad hopes to push the KRG to accept a reduced 14% share of the 2026 federal budget, down from the constitutionally mandated 17%, despite the new 2024 census confirming the region’s population had grown, justifying a larger allocation. The success of the framework could also put an end to the KRG’s traditional control over the marketing of its oil, giving Baghdad another weapon in the budget standoff.

Another Chinese logistics player lands in UAE-

China’s Awot launches regional HQ in Dubai: China-based logistics firm Awot Global Logistics Corporation opened its regional headquarters in Dubai Airport Freezone, expanding its presence across the Middle East, Africa, and Europe, according to the Dubai Media Office. The Dubai hub will manage regional operations across air, sea, and land freight, as well as cross-border transport and project logistics.