Iraq ends two-year halt, set to resume KRG oil exports to Türkiye

Iraq will restart oil exports from the Kurdistan Regional Government (KRG) to Türkiye after more than two years of suspension, following what Prime Minister Mohammed Shiaa al-Sudani described as a “historic” agreement.

The deal, hailed as a breakthrough in a long-running deadlock, will enable around 230,000 barrels of crude per day to flow through the Iraq–Türkiye pipeline, which has been idle since March 2023.

Under the terms of the agreement, Iraq’s state oil marketer SOMO will oversee exports from KRG-operated oil fields via the Kirkuk–Ceyhan pipeline to Türkiye, as per Turkish newspaper Daily Sabah.

The KRG confirmed on the social media platform X that flows would resume within 48 hours of the tripartite accord signed by Iraq’s Oil Ministry, the KRG Ministry of Natural Resources, and producing companies.

Exports were halted after the International Chamber of Commerce (ICC) ruled in 2023 that Türkiye must pay Baghdad $1.5 billion in damages for unauthorised KRG oil exports conducted between 2014 and 2018. Türkiye has appealed the decision, insisting that the ICC also recognised most of its demands. Ankara has consistently signalled readiness to restart the pipeline.

In July, Türkiye submitted a draft proposal to Baghdad aimed at renewing and expanding bilateral energy cooperation, covering oil, gas, petrochemicals, and electricity.

US Secretary of State Marco Rubio welcomed Thursday’s agreement, crediting Washington with helping facilitate the breakthrough. “We commend the decisive efforts of Iraqi Prime Minister Mohammed Shiaa al-Sudani and senior officials of the Government of Iraq, as well as KRG Prime Minister Masrour Barzani and senior KRG officials, to make this progress possible,” Rubio said.

He stressed that the accord would “strengthen the mutually beneficial economic partnership between the United States and Iraq, encourage a more stable investment environment throughout Iraq for US companies, enhance regional energy security, and reinforce Iraq’s sovereignty.”

According to the Iraqi Oil Ministry, all crude produced in KRG fields—except volumes reserved for domestic consumption—will now be delivered to SOMO for export through the Ceyhan pipeline. While the ministry did not specify the restart date, flows are expected to resume on September 27.

On September 24, eight oil companies active in KRG, representing more than 90% of production, reached agreements in principle with Iraq’s federal and regional governments to facilitate the resumption of exports.

By Tamilla Hasanova