Iraq Resumes Kurdish Oil Exports to Turkey After Two-Year Halt
Iraq has restarted crude oil exports from the Kurdistan region to Turkey after a two-year halt, following a deal between Baghdad and Arbil with international oil companies. The agreement aims to settle long-standing disputes over control and revenue from Kurdish oil exports.
The halt in exports stemmed from legal and technical disputes, with the Kurdish authorities previously selling oil independently without federal oversight. An arbitration tribunal ruled in 2023 that these exports were illegal, affirming Baghdad's exclusive right to market all Iraqi oil. In July 2023, Baghdad and Arbil agreed that Kurdish oil would resume delivery to the State Oil Marketing Organization (SOMO) for export. This agreement was finalized on Thursday, involving eight international oil companies, excluding Norway's DNO.
Under the deal, SOMO will receive 190,000 barrels per day for export and another 50,000 bpd for domestic consumption from Kurdistan's oil fields. The deal also stipulates that oil companies will meet with Kurdish authorities within 30 days to discuss settling outstanding debts owed to the firms, totaling over $1 billion. The Iraq-Turkey pipeline, which had been shut since 2023, was reopened for these exports.
The resumption of oil exports from the Kurdistan region is expected to significantly boost Iraq's oil revenues, which had been estimated to have lost over $35 billion since the pipeline closure. The deal between Baghdad, Arbil, and international oil companies marks a significant step towards resolving long-standing disputes and stabilizing Iraq's oil industry.
