Iraq, KRG reach deal to resume oil export via Türkiye

BAGHDAD

Oil produced in fields within Iraq's Kurdish Regional Administration (KRG) will be exported through the Iraq-Türkiye pipeline after a two-year halt, Iraqi Prime Minister Mohammed Shiaa al-Sudani has announced.

“Today we reached a historic agreement under which the Federal Ministry of Oil will receive crude oil produced from the fields in the Kurdistan Region of Iraq and export it through the Iraq–Türkiye pipeline,” al-Sudani said on X.

He said the deal ensures “fair distribution of wealth, diversification of export outlets and encouragement of investment.”

The Iraqi premier called the agreement “an achievement 18 years in the making.”

The accord signals a breakthrough in the standoff and will enable the resumption of roughly 230,000 barrels of daily crude flows through the Iraq-Türkiye pipeline, which has been out of service since March 2023.

According to the agreement, Iraq’s state oil company SOMO will ship crude from KRG fields via the Kirkuk-Ceyhan pipeline to Türkiye.

Oil exports will resume within 48 hours after the tripartite agreement between Iraq's Oil Ministry, the KRG Ministry of Natural Resources and producing companies.

U.S. Secretary of State Marco Rubio welcomed the agreement between the Iraqi government, Iraq's Kurdish Regional Administration (KRG) and international companies to reopen the Iraq-Türkiye oil pipeline.

In a statement, Rubio said the deal, facilitated by Washington, “will bring tangible benefits for both Americans and Iraqis.”

“We commend the decisive efforts of Iraqi Prime Minister Mohammed Shiaa al-Sudani and senior officials of the Government of Iraq, as well as KRG Prime Minister Masrour Barzani and senior KRG officials, to make this progress possible,” he added.

The secretary underlined that the agreement would “strengthen the mutually beneficial economic partnership between the United States and Iraq, encourage a more stable investment environment throughout Iraq for U.S. companies, enhance regional energy security and reinforce Iraq’s sovereignty.”

Oil flow from Iraq to Türkiye’s southern Ceyhan Port was halted on March 25, 2023, following an arbitration ruling by the Paris-based International Chamber of Commerce (ICC) concerning oil exports between Baghdad and Ankara.