Iraq Resumes Crude Oil Exports from Kurdistan Region Amid Tripartite Agreement

Strategic Insights -

Iraq has resumed exporting crude oil from the Kurdistan region, with Deputy Director of the State Organization for Marketing of Oil (SOMO), Hamdhi Shankali, revealing that roughly 2.5 million barrels of crude oil have been exported since flows resumed late in September. The resumption of oil exports follows an agreement between the Kurdistan Regional Government (KRG) and the federal government in Baghdad, which addressed a dispute that had halted oil flows through the 970-kilometer Kirkuk-Ceyhan pipeline for over two years. The agreement is expected to be renewed by the end of 2025, with operations returning to normal.

Key Takeaways:

  • Iraq has exported roughly 2.5 million barrels of crude oil from the Kurdistan region since flows resumed late in September.
  • The agreement between the KRG and the federal government in Baghdad addressed a dispute that had halted oil flows through the 970-kilometer Kirkuk-Ceyhan pipeline for over two years.
  • The total quantities scheduled to be delivered to the Oil Ministry in Baghdad range between 250,000 and 260,000 barrels per day.
  • 50,000 barrels will be used to operate oil refineries in Iraqi Kurdistan, with the remainder supplied to SOMO for export.
  • The International Chamber of Commerce (ICC) in Paris ruled that Ankara had violated a 1973 treaty by permitting oil exports without the approval of the federal government in Baghdad.
  • Turkey was required to pay Baghdad $1.5 billion in compensation for losses incurred by the KRG's unlawful oil shipments between 2014 and 2018.

Statistics:

  • 2.5 million barrels of crude oil exported from the Kurdistan region since flows resumed late in September.
  • 180,000 - 190,000 barrels per day exported quantity.
  • 250,000 - 260,000 barrels per day scheduled to be delivered to the Oil Ministry in Baghdad.
  • 50,000 barrels used to operate oil refineries in Iraqi Kurdistan.
  • 970 kilometers - length of the Kirkuk-Ceyhan pipeline.
  • 1973 - year in which the treaty between Iraq and Turkey was established.
  • $1.5 billion - compensation paid by Turkey to Baghdad for losses incurred by the KRG's unlawful oil shipments between 2014 and 2018.

Sources:

  • Statement to Shafaq News by Deputy Director of the State Organization for Marketing of Oil (SOMO), Hamdhi Shankali.
  • August statement by the Kurdistan Regional Government (KRG) on reaching an agreement with the federal government in Baghdad to resume oil shipments through the Turkish port of Ceyhan.
  • Iraqi Oil Minister Hayan Abdul-Ghani's explanation of the exported quantities and scheduled deliveries.
  • International Chamber of Commerce (ICC) ruling in Paris.