Iraq, KRG reach deal to resume oil exports via Turkey pipeline

BAGHDAD — Prime Minister Mohammed Shia al-Sudani on Thursday announced a “historic agreement” between Baghdad and the Kurdistan Regional Government to resume crude exports from the Kurdistan Region through the Iraq–Turkey pipeline, ending an 18-month halt.

“We reached today a historic agreement under which the federal Oil Ministry will receive crude oil produced from the fields located in the Kurdistan Region and export it through the Iraq–Turkey pipeline,” Sudani said in a post on X. He described the deal as a long-awaited milestone that “ensures the fair distribution of wealth, diversifies export outlets, encourages investment, and is an achievement we have awaited for 18 years.”

The federal Oil Ministry said the agreement includes all crude produced in the Kurdistan Region, except for volumes designated for internal use. Those supplies will now be delivered to Iraq’s state oil marketer SOMO for export through Turkey’s Ceyhan port. The ministry said the agreement is based on Iraq’s constitution, the federal budget law, and rulings from the Federal Supreme Court.

The ministry called the agreement the result of “months of continuous discussions launched from a shared national vision to enhance Iraq’s role as a key player in the global energy market.” It said the deal establishes clear technical and organizational mechanisms to ensure transparent revenue flows, improve state finances, and support economic stability.

The Kurdistan Regional Government’s Ministry of Natural Resources said in a brief statement that exports would resume within 48 hours under the tripartite agreement with the federal Oil Ministry and international oil companies operating in the region.

Oil exports from the Kurdistan Region have been suspended since March 25, 2023, when Turkey shut the pipeline following an arbitration ruling by the International Chamber of Commerce in Paris. The tribunal found Ankara had violated a 1973 agreement by allowing the KRG to export oil independently of Baghdad. The shutdown has cost both the federal and regional governments billions in lost revenue and forced international companies to scale back or halt operations.

In recent weeks, negotiations accelerated. On Sept. 23, SOMO Director Ali Nizar said the agreement was in its final stages and that payment assurances had been provided to international companies. A day later, the KRG’s natural resources ministry confirmed it had fulfilled its obligations and was awaiting Baghdad’s signature to finalize the deal.