Iraq and Turkey Sign on for Restart of Kurdistan Oil Exports

Iraqi and Turkish governments have finalized an agreement for the resumption of crude oil exports from the Kurdistan region through the pipeline to Turkey's Mediterranean coast, according to WPB. The announcement was made by Shakhwan Abdullah, Iraqi Parliament Deputy Speaker.

Kurdistan crude's export had been halted for more than two years since its closure in March 2023, following disagreements over whose approval would certify the region's exports. Despite sporadic reforms in talks, Baghdad-Erbil tensions persisted with issues mainly revolved around revenue management and export control.

Recent reports have announced a breakthrough. Iraqi authorities promised that the state oil marketing company, SOMO, closed agreements with Turkish firms to restart deliveries. On the other hand, the Kurdistan Regional Government and Baghdad's federal government closed an agreement over the sharing of both oil and non-oil revenues.

These coordinated efforts in advance are intended to put some 230,000 barrels of crude per day back into global markets in phase one. The path to this outcome did include the resolution of a number of conflicts, not only between Baghdad and Erbil, but between Iraq and Turkey, and between the federal government and foreign oil producers in the Kurdish area as well.

The Baghdad federal government has already signed off on the initial approval of the export plan, while international companies in Kurdistan's energy sector have already given conditional approval to resume operations. This group acceptance is a significant move towards stabilizing the energy exports of the region and growing the share of Iraq's contribution to global oil markets.

By WPB

Oil, Crude, Petroleum