Historic Oil Flow Resumes in Kurdistan-Turkey Pipeline Breakthrough
Oil began flowing through the Kurdistan-Turkey pipeline after a 2.5-year pause, following a deal between Iraq's federal government, the Kurdistan regional government, and foreign oil producers. The agreement ensures 180,000-190,000 barrels per day are transported to Turkey's Ceyhan, with potential future increases to 230,000 barrels.
Crude oil has resumed flowing through a vital pipeline from the Kurdistan region in northern Iraq to Turkey, marking a significant development after a hiatus of two-and-a-half years. This breakthrough comes in the wake of an interim agreement that successfully resolved a longstanding deadlock.
The flow restarted at 6 a.m. local time, as confirmed by Iraq's oil ministry. Operations commenced smoothly, without notable technical issues, after an agreement between Iraq's federal government, the Kurdistan regional government, and foreign oil producers. This development will see oil transported to Turkey's Ceyhan at a rate of 180,000 to 190,000 barrels per day.
The restart, influenced by U.S. encouragement, aligns with OPEC+'s efforts to increase output and expand market share. The Kirkuk-Ceyhan pipeline had been inactive since March 2023, following a legal dispute requiring Turkey to compensate Iraq for unauthorized exports. The recent plan also outlines oil sales handling and revenue distribution strategies.
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