Iraq, KRG strike deal to resume oil exports through Türkiye

BAGHDAD, Iraq (MNTV) — Iraq will restart crude 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 will allow about 230,000 barrels per day to be exported via the Kirkuk-Ceyhan pipeline, halted since March 2023 after an arbitration ruling by the International Chamber of Commerce (ICC). 

Under the agreement, according to Daily Sabah, Iraq’s state marketer SOMO will oversee exports from KRG fields to Türkiye’s Ceyhan port.

The KRG confirmed that exports will resume within 48 hours under a tripartite arrangement involving Iraq’s Oil Ministry, the KRG Ministry of Natural Resources, and producing companies. 

Eight international firms operating in the region, covering more than 90% of output, signed preliminary agreements with both governments earlier this week.

The ICC ruling, which ordered Türkiye to pay Baghdad $1.5 billion for unauthorized KRG exports between 2014 and 2018, has been a key obstacle. 

Ankara has appealed the decision but has repeatedly signaled readiness to restart flows and expand cooperation on oil, gas, petrochemicals, and electricity.

U.S. Secretary of State Marco Rubio welcomed the deal, crediting Washington’s role in facilitating talks. He said the agreement would strengthen U.S.-Iraq economic ties, improve investment conditions, enhance regional energy security, and reinforce Iraq’s sovereignty.

Iraq’s Oil Ministry said all crude from KRG fields, except volumes reserved for local use, will now be delivered to SOMO for export. Flows are expected to restart on Saturday, according to industry reports.