Oil exports from the Kurdistan Region restarted on Sept. 25 after a suspension of nearly two and a half years, with the first shipment leaving through the Turkish port of Ceyhan on Sept. 27. The breakthrough follows an agreement among the Kurdistan Regional Government, Iraq's federal government, and international oil companies. Initial exports stand at 190,000 barrels per day, with plans to increase to 230,000 barrels daily, while 50,000 barrels per day will serve domestic needs in the Kurdistan Region.
Energy experts say the move strengthens Turkey's and Europe's energy security while offering a more secure alternative to sea transport from Basra. The deal is expected to generate $400 million to $500 million monthly for Iraq's federal budget, with sales managed through the U.S. Federal Reserve System. International oil companies will receive $16 per barrel for production and transportation expenses.
The 900-kilometer Iraq-Turkey pipeline connects Kurdish oil fields to Ceyhan on the Mediterranean and represents the country's largest export route. Experts note the pipeline could handle 700,000 to 800,000 barrels daily if Kirkuk oil joins the flow. Exports stopped in March 2023 after an arbitration ruling found Turkey violated a 1973 agreement by permitting independent Kurdish oil exports.
Energy experts say the move strengthens Turkey's and Europe's energy security while offering a more secure alternative to sea transport from Basra. The deal is expected to generate $400 million to $500 million monthly for Iraq's federal budget, with sales managed through the U.S. Federal Reserve System. International oil companies will receive $16 per barrel for production and transportation expenses.
The 900-kilometer Iraq-Turkey pipeline connects Kurdish oil fields to Ceyhan on the Mediterranean and represents the country's largest export route. Experts note the pipeline could handle 700,000 to 800,000 barrels daily if Kirkuk oil joins the flow. Exports stopped in March 2023 after an arbitration ruling found Turkey violated a 1973 agreement by permitting independent Kurdish oil exports.
