Iraq, KRG Reach Historic Deal to Resume 230,000 bpd Oil Exports via Turkey Pipeline

Iraq and the Kurdistan Regional Government (KRG) have reached a historic agreement to resume oil exports through the Iraq–Turkey pipeline, which had been suspended since March 2023 following an international arbitration ruling. This deal, praised by U.S. Secretary of State Marco Rubio as facilitated by Washington, is expected to enable around 230,000 barrels per day of crude exports from Iraqi Kurdistan and strengthen economic ties between Baghdad and Erbil. The agreement ensures the federal oil ministry will receive crude produced in the Kurdistan region and export it through the Kirkuk-Ceyhan pipeline, promoting fair wealth distribution, investment encouragement, and diversification of export outlets. The deal resolves a long-standing dispute over oil export control that has strained relations between the federal government and the KRG since the 2003 invasion and halted vital revenue streams. Officials emphasize the agreement will enhance Iraq's sovereignty, stabilize its energy sector, and improve the investment climate for U.S. companies operating in Iraq. Both Iraqi Prime Minister Mohammed Shia al-Sudani and KRG Prime Minister Masrour Barzani welcomed the breakthrough as a significant step toward national cooperation and economic recovery.