Iraq-Kurdistan Plans Resume 230,000 BPD Oil Exports via Turkey

Iraq's federal government, the Kurdish Regional Government (KRG), and international oil companies have reached a critical agreement to resume Kurdish crude oil exports through Turkey's Ceyhan pipeline after an 18-month suspension. This deal is expected to restart the flow of approximately 230,000 barrels per day, which had been halted due to disputes over payments and geopolitical tensions. The arrangement involves the Kurdistan Regional Government committing to deliver oil to Iraq's state oil marketer SOMO, with a portion reserved for local use, and sales managed by an independent trader at official prices. The deal, pending Iraqi cabinet approval, also includes financial provisions for revenue distribution and aims to resolve long-standing conflicts over contracts, arrears, and control of oil fields. Analysts view this as a strategic step to rebuild trust between Baghdad and Erbil, stabilize Iraq's public finances, reassure foreign investors, and bolster global oil supply, particularly benefiting European markets amid regional uncertainties. The pipeline's restart will significantly ease pressures on the market, which is anticipated to enter a phase of surplus supply.