Iraq and Kurdistan Agree to Restart Oil Exports to Turkey's Ceyhan Port

Iraq and the Kurdistan Regional Government have agreed to restart crude oil exports to Turkey's Ceyhan port, with shipments resuming on March 17, according to Iraq's oil minister Hayyan Abdul Ghani, as reported by The Straits Times and The National. The exports will initially move at a capacity of around 250,000 barrels per day, marking a significant reopening after being halted due to political and logistical challenges.

The deal includes the formation of a joint committee responsible for overseeing preparation and revenue sharing between Baghdad and the Kurdistan Regional Government, ensuring coordinated management of the exports, according to Middle East Eye. Security arrangements are also part of the agreement to safeguard the flow of oil amid volatile global oil prices.

Turkey has further proposed extending the Iraq-Turkey oil pipeline to Basra in southern Iraq, which could allow Iraq to channel up to 50% of its oil exports through Turkey, aiming to diversify its export routes amidst the ongoing blockade of the Strait of Hormuz, Middle East Eye reports. This extension seeks to mitigate the economic impact of regional tensions and disruptions caused by Iran’s effective shutdown of the Strait.

The restoration of exports via Ceyhan is seen as a critical step in addressing economic challenges faced by Iraq due to the US-Israel conflict with Iran and disrupted regional oil flows, with US officials reportedly supporting the agreement, The National adds. This move enhances energy cooperation between Iraq, the Kurdistan Regional Government, and Turkey, positioning Ceyhan as a key energy hub.

Going forward, stakeholders will monitor the effectiveness of the joint committee’s management and security protocols to maintain stable export levels. The proposed pipeline extension to Basra remains a key development to watch, as it could reshape Iraq’s oil export landscape by providing alternative routes outside the Strait of Hormuz.