Iraq resumes Kurdish oil exports to Turkiye after two-and-a-half-year halt

Iraq has resumed crude oil exports from the semi-autonomous Kurdistan region to Turkiye after an interim deal broke a two-and-a-half-year deadlock over legal and technical disputes.

The resumption started at 6am local time (03:00 GMT), according to a statement from Iraq’s oil ministry on Saturday. “Operations started at a rapid pace and with complete smoothness without recording any significant technical problems,” the ministry said.

Turkish Energy Minister Alparslan Bayraktar also confirmed the development in a post on X.

The agreement between Iraq’s federal government, the Kurdistan regional government (KRG) and foreign oil producers operating in the region will allow 180,000 to 190,000 barrels per day (bpd) of crude to flow to Turkiye’s Ceyhan port, Iraq’s oil minister told Kurdish broadcaster Rudaw on Friday.

The resumption follows a tripartite agreement reached earlier this week between the ministry, the Kurdish region’s natural resources ministry, and international oil companies operating in the region.

The United States had pushed for a restart, which is expected to eventually bring up to 230,000 bpd of crude back to international markets at a time when the Organization of the Petroleum Exporting Countries (OPEC) is boosting output to gain market share. US Secretary of State Marco Rubio welcomed the deal in a statement, saying it “will bring tangible benefits for both Americans and Iraqis”.

Iraq’s OPEC delegate, Mohammed al-Najjar, said his country can export more than it is now after the resumption of flows via the Kirkuk-Ceyhan pipeline, in addition to other planned projects at Basra port, state news agency INA reported on Saturday.

“OPEC member states have the right to demand an increase in their [production] shares especially if they have projects that led to an increase in production capacity,” he said.

Companies operating in the Kurdistan region will receive $16 per barrel to cover production and transportation costs. The eight oil companies that signed the deal and the Kurdish authorities have agreed to meet within 30 days of exports resuming to work on a mechanism for settling the outstanding debt of $1bn the Kurdistan region owes to the firms.