Crude oil resumed flowing through the pipeline from the semi-autonomous Kurdistan region in northern Iraq to Turkey for the first time in two and a half years on Saturday, following an interim agreement that ended the deadlock, according to reports from Iraqi media, including the Kurdish broadcaster Rudaw.
The flow began at 6 a.m. local time (0300 GMT), as confirmed in a statement from Iraq’s oil ministry. The agreement involves Iraq’s federal government, the Kurdistan Regional Government (KRG), and foreign oil producers operating in the region, and is expected to facilitate the transit of 180,000 to 190,000 barrels per day to the Turkish port of Ceyhan, as stated by Iraq’s oil minister in an interview with Rudaw.
U.S. intervention was pivotal in facilitating the restart, which could eventually bring around 230,000 barrels per day of crude oil back to international markets at a time when OPEC+ is increasing output to reclaim market share. The Kirkuk-Ceyhan pipeline had been halted since March 2023, when the International Chamber of Commerce mandated Turkey to pay Iraq $1.5 billion in damages for unauthorized exports by Kurdish authorities.
The preliminary plan, established on Wednesday, mandates that the KRG deliver a minimum of 230,000 barrels per day to Iraq’s state oil marketer SOMO while reserving an additional 50,000 barrels per day for local consumption, according to officials familiar with the agreement.
An independent trader will oversee sales from the Turkish port of Ceyhan, utilizing SOMO’s official pricing. For each barrel sold, $16 will be directed to an escrow account that will be allocated proportionally to producers, while the remainder of the proceeds will go to SOMO, according to the same officials.
Norway’s DNO announced it has no immediate plans to export through the pipeline; however, local buyers are still permitted to use the route for shipping crude. The company, along with its partner Genel Energy, noted that the outstanding issue of approximately $1 billion owed to producers, including DNO’s $300 million share, must be resolved.
The eight oil companies that participated in the agreement, along with the KRG, are set to convene within 30 days of the resumption of exports to develop a mechanism for addressing the outstanding debts.
The oil article was published on September 27, 2025.
