Iraq restarts oil flow from Kurdistan

Iraq announced on Friday that it will officially declare the resumption of oil exports from the Kurdistan region in the coming hours, through the State Oil Marketing Organization (SOMO) via the Turkish Ceyhan terminal, according to the Iraqi Ministry of Oil.

The initial flow of oil exports is expected to start at 185,000 barrels per day, with a gradual increase in output over time.

The decision marks a significant step in resolving the long-standing disputes over oil exports between the Iraqi federal government and the Kurdistan Regional Government (KRG). 

The pipeline, which had been shut down since March 2023, is now set to resume operations, potentially boosting Iraq's oil revenues and strengthening economic ties with Turkey.

The Ceyhan terminal, located on Turkey's Mediterranean coast, serves as a key export hub for Iraq’s crude oil. The suspension of Kurdish oil exports through this route had impacted the regional economy, with major oil companies operating in Kurdistan facing financial challenges.

With the resumption of exports, Iraq aims to increase its oil output, stabilize relations with Turkey, and ensure better revenue-sharing mechanisms between Baghdad and Erbil.

More details regarding the export agreement and potential long-term arrangements are expected to be disclosed soon.