Iraq has resumed crude oil exports from the semi-autonomous Kurdistan region to Turkiye, marking the end of a two-and-a-half-year deadlock over legal and technical disputes. The resumption began at 6 AM local time on Saturday, as confirmed by Iraq’s oil ministry, which reported smooth operations with no significant issues.

Under a tripartite agreement involving Iraq’s federal government, the Kurdistan Regional Government (KRG), and international oil companies, exports are expected to flow at a rate of 180,000 to 190,000 barrels per day (bpd) through the Kirkuk-Ceyhan pipeline. The U.S. played a key role in facilitating the agreement, which is projected to eventually increase to 230,000 bpd. U.S. Secretary of State Marco Rubio praised the deal, emphasizing its benefits for both Americans and Iraqis.

The Kurdish authorities had independently managed oil sales, which had caused tension with Baghdad, particularly after the pipeline’s closure in March 2023 due to a legal ruling against Turkiye. The involvement of eight oil companies in the deal includes a provision for settling a $1 billion debt owed by the Kurdistan region. The closure of the pipeline has reportedly cost Iraq over $35 billion in losses. This new agreement is seen as a step toward improving relations between Baghdad and Erbil and enhancing Iraq’s oil revenue.



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