Historic Breakthrough: Iraq Restarts Kurdish Oil Exports

Iraq is set to recommence oil exports from the Kurdish region to Turkey following a hiatus of over two years, marking what Prime Minister Shia al-Sudani described as a 'historic agreement' with the Kurdish regional government.

The state-controlled SOMO will oversee the exportation of crude from Kurdish oil fields via a pipeline to Turkey. According to the Kurdistan Regional Government, oil exports will resume within 48 hours post the tripartite accord involving Iraq's oil ministry, the KRG's natural resources ministry, and several production companies. The vital Kirkuk-Ceyhan pipeline went offline in March 2023 after Turkey was mandated to pay Iraq $1.5 billion in damages for unauthorized Kurdish oil exports.

The Iraqi oil ministry confirmed it would deliver all Kurdish crude intended for export to SOMO, though the exact restart date of the oil flows remains unspecified. Eight oil firms, representing over 90% of production in Iraqi Kurdistan, have reached principal agreements with both Iraq's federal and regional governments to recommence export activities. Prior to the export suspension, Iraq was transporting approximately 230,000 barrels per day via the pipeline. While Turkey contests the compensation order, it's preparing to reopen the pipeline.