Baghdad, Kurdistan Reach Agreement on Oil Exports via Turkey

A significant agreement between Baghdad, Erbil (Iraqi Kurdistan), and international oil companies is expected to be announced, potentially ending the 18-month halt of Kurdish crude oil exports through Turkey's Ceyhan port.

According to OilPrice.com, the agreement stipulates that approximately 230,000 barrels per day will be placed under the Iraqi federal marketing authority, SOMO, while another 50,000 barrels per day will supply the domestic market.

The export halt began in March 2023 when Ankara closed the Iraq-Turkey pipeline following an international arbitration ruling. Turkey links the resumption to terms including mechanisms to ensure full utilization of the pipeline and protection from further legal proceedings.

Reuters reported that Turkey submitted a draft proposal to Iraq to renew and extend the 1973 pipeline agreement.

If Turkey approves the framework, more than 230,000 barrels per day could re-enter international markets.

Source: ΚΥΠΕ