Iraq has resumed crude oil exports from the Kurdish region to Turkey, ending a two-and-a-half-year halt. The agreement allows 180,000 to 190,000 barrels per day to flow through the Ceyhan port. Baghdad, the Kurdistan Regional Government (KRG), and foreign oil producers reached an interim deal to restart shipments. This move strengthens Iraq’s oil revenues and improves economic ties between Baghdad and Erbil.
The Kirkuk-Ceyhan pipeline restarted operations early in the morning, marking a significant milestone for Iraq’s energy sector. The agreement also enables the federal government to pay Kurdish salaries and transfer funds for essential services. These steps ease political tensions between Iraq’s central government and the KRG. International and regional stakeholders welcomed the resumption of crude oil exports as a positive development.
The United States encouraged the restart, which could eventually increase shipments to 230,000 barrels per day. Higher crude flows may help stabilize global oil prices while supporting Iraq’s production goals. Under the agreement, the KRG will deliver at least 230,000 barrels per day to Iraq’s state oil marketer SOMO, keeping an additional 50,000 barrels for local use.
An independent trader will manage sales from Ceyhan using SOMO’s official pricing. For every barrel sold, $16 will be deposited into an escrow account and distributed to producers, with the remainder going to SOMO. This mechanism ensures fair revenue distribution and strengthens Iraq’s oil market transparency.
Norway’s DNO has no immediate plans to ship through the pipeline, although local buyers could still transport its crude. DNO and partner Genel Energy highlighted the importance of resolving the KRG’s outstanding $1 billion arrears to producers, including DNO’s $300 million share. The eight companies involved and the KRG will meet within 30 days to establish a settlement plan for these debts.
The restart of crude oil exports highlights Iraq’s commitment to unified energy policies and market stability. It also supports OPEC+ strategies to increase production and maintain market share. Cooperation between Baghdad and Erbil demonstrates Iraq’s ability to manage complex oil operations and strengthen its global standing.
Overall, resuming crude oil shipments provides revenue stability, supports essential government services, and reinforces Iraq’s role as a key energy supplier in the region. The agreement reflects strategic planning and cooperation to enhance Iraq’s oil sector.
