Iraq to Resume Oil Exports from Kurdish Region via Turkey

Baghdad, Sep 26 (AP) Iraq is set to resume oil exports from the semi-autonomous Kurdish region in the north through Turkey's Ceyhan port, putting an end to a more than two-year hiatus, according to officials who spoke on Friday.

The exports, scheduled to restart on Saturday, are expected to increase Iraq's oil revenues and help stabilize ties between the central government in Baghdad and the Kurdish region, even though disagreements over revenue distribution and field management remain unresolved.

The cessation of exports occurred in early 2023 after the International Chamber of Commerce ruled in favor of Iraq in an arbitration case concerning the Kurdish regional government's independent oil exports. Efforts to negotiate a deal to resume exports had previously failed.

Ali Nizar al-Shatari, chief of Iraq's State Oil Marketing Organisation, informed The Associated Press that pumping would commence at 6 a.m. on Saturday, with an agreed-upon export quantity of 240,000 barrels per day. Between 180,000 and 190,000 barrels will actually be exported, while approximately 50,000 barrels will be used locally within the Kurdish region.

This resumption results from a tripartite agreement involving Iraq's federal Oil Ministry, the Kurdish region's natural resources ministry, and international oil companies operating in the region. Companies in the Kurdistan Region will be compensated with USD 16 per barrel to cover production and transportation expenses, according to al-Shatari.

He noted that the United States supported and closely monitored the agreement. The current export agreement with Turkey is valid until July 2026, and discussions with Ankara regarding its renewal will take place, the Iraqi official added.

US Secretary of State Marco Rubio praised the deal in a statement, asserting that it “will bring tangible benefits for both Americans and Iraqis.” Norwegian oil and gas company DNO ASA stated it received instructions to prepare for oil exports through the Iraq-Turkey pipeline starting Saturday. However, the company will not directly export oil but will sell to buyers who will then transport the oil through the export pipeline.

DNO Executive Chairman Bijan Mossavar-Rahmani indicated that the company is launching a major production expansion program and is replacing equipment damaged during drone attacks on its Iraqi fields in July.

Officials in Baghdad and Irbil, the capital of the Kurdish regional government, have long been at odds over the sharing of oil revenues. In 2014, the Kurdish region opted to independently export oil via a pipeline to Turkey's Ceyhan port.

Iraq's central authorities have consistently argued that it is illegal for the Kurdish region to export oil without involvement of the Iraqi national oil company, while Kurdish authorities claim this approach was necessary to make up for budget transfers withheld by Baghdad. (AP) NPK NPK

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