Iraq resumes Kurdish oil xxports to Turkey

Crude oil from Iraq’s semi-autonomous Kurdistan region flowed to Turkey on Saturday for the first time in 2-1/2 years, following an interim deal between Baghdad, the Kurdistan Regional Government (KRG), and foreign producers, Iraq’s oil ministry said.

Flows through the Kirkuk-Ceyhan pipeline had been suspended since March 2023 after an arbitration ruling against Turkey. 

Under the new arrangement, 180,000–190,000 barrels per day (bpd) will initially be exported to Turkey’s Ceyhan port, with volumes expected to rise to 230,000 bpd, officials said.

The U.S. had pressed for a restart, which comes as OPEC+ boosts output. Iraq says the move will lift its exports to nearly 3.6 million bpd, still within its 4.2 million bpd OPEC quota.

As part of the deal, the KRG will deliver 230,000 bpd to Iraq’s state marketer SOMO, while keeping 50,000 bpd for local use. Revenues will be split via an escrow account, with $16 per barrel allocated to repay producers.

Norway’s DNO and its partner Genel Energy said debt arrears—about $1 billion owed to international oil firms—must still be resolved. The KRG and producers will meet within 30 days to agree on a repayment mechanism.

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