Iraq and Kurdish Government Strike Oil Deal to Resume Exports via Turkey
Iraq's federal and Kurdish regional governments have reached an agreement with oil companies to resume suspended crude exports via Turkey, pending Iraqi cabinet approval. The deal involves resuming exports of 230,000 barrels per day, while negotiations continue on financial terms with oil firms like DNO and Genel Energy.
Iraq's federal and Kurdish regional administrations have brokered an agreement to restart crude exports through Turkey, a move that comes after a lengthy suspension dating back to March 2023. Industry insiders confirmed the deal, which awaits approval from the Iraqi cabinet on Tuesday, to Reuters.
The agreement allows for the resumption of 230,000 barrels per day (bpd) from Iraqi Kurdistan, after the region's exports had been on hold. The technical reactivation of pipeline operations is set to begin immediately, with oil flows anticipated to restart in the next 48 hours, according to an oil official familiar with the process.
Despite reaching this accord, not all parties are in agreement. Major players like Norway's DNO and Genel Energy have yet to endorse the terms. DNO continues negotiations to recoup nearly $300 million owed prior to the suspension, while broader discussions on outstanding arrears and future revenue sharing remain unresolved.
(With inputs from agencies.)
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