Iraq to resume oil exports from Northern region via Ceyhan port
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Abdul Ghani previously revealed on February 17 that Iraq aims to export at least 300,000 barrels per day of crude oil once the pipeline from northern Iraq to Turkey is fully operational.
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Laborers walk down a path in the Nihran Bin Omar field north of Basra, Iraq, 340 miles (550 kilometers) southeast of Baghdad, on Thursday, Jan. 12, 2017 (AP)
Iraq's oil minister, Hayan Abdul Ghani, announced on Friday that the country will recommence oil exports from the northern region through the State Oil Marketing Organization (SOMO) via Turkey's Ceyhan port.
The Minister noted that "oil from the Kurdistan region will be exported through the Turkish port of Ceyhan at an initial rate of 185,000 barrels per day, gradually increasing to reach the capacity specified in the federal general budget."
Abdul Ghani previously revealed on February 17 that Iraq aims to export at least 300,000 barrels per day of crude oil once the pipeline from northern Iraq to Turkey is fully operational.
This development follows a prolonged suspension of nearly two years, which began in March 2023 after the International Chamber of Commerce (ICC) ruled in favor of Iraq in a dispute over unauthorized oil exports by the Kurdistan Regional Government (KRG). The ICC's decision mandated Turkey to pay Baghdad $1.5 billion in damages and led to the cessation of oil flows through the Iraq-Turkey pipeline.
Despite the Iraqi government's readiness to resume exports, several international oil companies operating in the Kurdistan Region have expressed reservations. The Association of the Petroleum Industry of Kurdistan (APIKUR) stated that its member companies are prepared to restart exports immediately, provided that formal agreements ensuring payment for past and future exports are established. As of now, no such agreements have been reached.
Read more: Iraq to supply 185,000 bpd via Iran-Turkiye pipeline: Reuters
The move also comes in light of the the Trump administration's renewed "maximum pressure" campaign against Iran. Reports suggest that the US has pressured Iraq to restart these exports to stabilize global markets and offset potential declines in Iranian oil exports amid escalating tensions.
Despite these reports, Iraqi officials maintain that the decision to resume exports is based on national economic interests.
