Iraq-Turkey Oil Pipeline Restart Faces Delays

Iraq's oil minister Hayan Abdel-Ghani announced that oil exports through Turkey's Ceyhan pipeline are set to resume imminently after a two-year suspension caused by legal disputes and an arbitration ruling. The planned restart, coordinated with the Kurdistan Regional Government, will begin with an initial export of 80,000 barrels per day via Iraq’s state oil marketer SOMO. Despite the agreement, no exports have resumed yet due to unresolved issues with international oil companies in Kurdistan, chiefly concerning compensation for losses during the shutdown. The Kirkuk-Ceyhan pipeline was halted after a Paris arbitration court ordered Turkey to pay $1.5 billion in damages for unauthorized exports, a decision Turkey is appealing. Both Baghdad and Erbil have agreed to centralize exports through SOMO, but the timeline for full resumption remains uncertain as talks with producers continue. The pipeline previously transported about 450,000 barrels per day, mostly Kurdish crude, and its restoration is expected to boost significant revenues.