Iraq’s federal government has officially resumed oil exports from the semi-autonomous Kurdish region through Turkey’s Ceyhan port, marking the end of a contentious two-year freeze. The move follows Baghdad’s compliance with international arbitration rulings and aligns with OPEC production quotas, signaling a fragile reconciliation between Iraq and Kurdish authorities.
The Iraqi Oil Ministry confirmed that shipments will adhere to federal budget laws and prioritize the state-run State Organization for Marketing of Oil (SOMO).
We call on the regional authorities to deliver the produced quantities in line with signed contracts to ensure smooth operations,the ministry stated, emphasizing centralized control over exports.
Key tensions driving the conflict include:
- Revenue sharing disputes between Baghdad and Erbil since 2014
- Kurdistan’s unilateral decision to build an independent pipeline to Turkey
- Baghdad’s 2023 legal victory against Turkey in the ICC arbitration court
The Kurdistan Regional Government (KRG) had defended its independent exports as necessary to offset withheld federal budget payments. Baghdad, however, denounced the practice as illegal, escalating tensions that halted 450,000 barrels per day of crude flows in March 2023.
Analysts warn that while the resumption stabilizes Iraq’s OPEC+ compliance, lingering distrust could disrupt long-term cooperation. The agreement mandates KRG oil transfers to SOMO before pipeline exports, ensuring federal oversight of the lucrative Iraq-Turkey pipeline.
This resolution comes as Iraq seeks to boost revenue amid post-war reconstruction needs. With oil constituting 90% of federal income, reintegrating Kurdish production strengthens Baghdad’s position in global energy markets while testing Erbil’s autonomy claims.