After more than two years, oil is once again flowing from Iraqi Kurdistan to Turkey

On Saturday morning, after more than two years, oil began flowing again from Iraqi Kurdistan to Turkey.

Deliveries through the Kirkuk–Ceyhan pipeline resumed on the basis of a preliminary agreement between the Iraqi government, the Kurdish Regional Government (KRG), and foreign producers, according to media reports, including the Kurdish broadcaster Rudaw.

The Ministry of Oil confirmed that 180,000 to 190,000 barrels per day will flow to the port of Ceyhan. The plan is to increase this to 230,000 barrels per day, with an additional 50,000 barrels earmarked by the KRG for local consumption.

The sale will be handled by an independent trader at the prices set by the state exporter SOMO. Of each barrel, $16 will go to a special account for the producers, with the rest of the proceeds going to the state.

Operation of the pipeline was suspended in March 2023 after the International Chamber of Commerce ordered Turkey to pay $1.5 billion for unauthorized exports. Producers and the KRG agreed to begin talks within 30 days of the resumption of deliveries to settle a debt of around $1 billion owed to the oil companies.

(reuters, sab)