Kurdistan Agrees to Resume Oil Exports via Kirkuk Ceyhan Pipeline

Iraq has reached an agreement with the Kurdistan Regional Government to divert approximately 250,000 barrels of oil per day through Turkey. This decision follows years of negotiations over crude exports from Iraq’s Kirkuk fields to the Mediterranean port of Ceyhan.

The Kirkuk-Ceyhan pipeline, which stretches over 600 miles, has been largely inactive for over a decade due to repeated attacks by Islamic State militants. Though Kirkuk is not officially part of the autonomous Kurdistan region, it remains central to ongoing territorial disputes. Given the current challenges facing the country, Kurdistan’s Prime Minister Masrour Barzani announced the intention to allow crude exports without delay.

The Kurdistan Regional Government has confirmed that both sides will establish a joint committee aimed at preparing for the resumption of oil exports. Revenue from these exports will be directed toward the federal treasury. The Kurdish authorities indicated an initial export capacity of 250,000 barrels per day, despite the pipeline’s total capacity being estimated at around 900,000 barrels per day.

This agreement is crucial in the context of recent events in the Middle East, which have severely disrupted oil supply chains. Iraq’s ability to resume exports via Ceyhan will only partially address the downturn in exports resulting from conflicts in the region. Historically, Iraq has relied on its southern fields, particularly in Basra, which typically account for a much larger portion of the nation’s export capacity.

The announcement led to a temporary easing of oil prices, with Brent crude approaching USD 100 per barrel before experiencing further fluctuations. As global markets are reassessing their strategies, this development places greater emphasis on alternative export routes to bypass the increasingly hazardous Strait of Hormuz, a passage critical for international oil trade.

Long-term assessments by organisations such as the International Energy Agency highlight the urgency for Middle Eastern exporters to find reliable pipeline alternatives. As the situation evolves, the success of this agreement could set a significant precedent for future energy production in Iraq.