The Iraqi federal government and the Kurdistan Regional Government (KRG) have reached an agreement to resume oil exports from northern Iraq through the Turkish port of Ceyhan. The deal, mediated by the Iraqi Prime Minister's office, aims to end a year-long halt that began after an international arbitration ruling in March 2023.
Under the new arrangement, the KRG will hand over control of its oil production to the federal oil marketing company, SOMO. This centralizes export authority with Baghdad, which will manage sales and revenue distribution. The agreement is a significant step toward resolving long-standing budgetary and oil revenue disputes between Erbil and Baghdad.
The resumption of flows through the Iraq-Turkey Pipeline (ITP) is expected to add approximately 450,000 barrels per day to global supplies once fully operational. However, the timeline for restarting exports remains unclear, pending final technical and financial agreements with Turkey.
The pipeline has been shut since March 2023, following a ruling by the International Chamber of Commerce that found Turkey had breached a 1973 agreement by allowing the KRG to export oil without Baghdad's consent. The halt has cost both Iraq and the KRG billions in lost revenue.
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