Iraqi and Turkish Ministers Collaborate on Restarting Oil Exports

Iraq's oil minister and the Turkish energy minister convened in Ankara to explore the revival of crude oil exports. The interruption of exports has endured for five months since Ankara suspended oil flow from the Kurdistan Region following a ruling by an international tribunal. The two ministries issued a joint statement addressing the matter.

The stoppage of oil exports from the Kurdistan Region through the Iraq-Turkey pipeline began on March 23. This halt was prompted by a Paris arbitration court's decision that favored Baghdad over Ankara. The court declared Ankara's permission for Erbil's independent oil exports in 2014 a violation of a 1973 pipeline agreement.

Despite numerous meetings between Iraqi and Turkish representatives since March, aimed at reinstating the crude oil flow, Erbil has incurred significant financial losses due to the ongoing cessation. Kurdish and Iraqi authorities have expressed their readiness to resume exports, citing Turkey's need to inspect and rehabilitate port tubes damaged during February's earthquake.

Alongside discussing oil exports, the ministers highlighted the potential for joint cooperation in energy, oil and gas, electrical interconnection, and renewable energy.

Article 13 of the Iraqi federal budget mandates Erbil to hand over a minimum of 400,000 barrels of crude oil daily to Iraq's State Oil Marketing Organization (SOMO) for export via Turkey's Ceyhan port or for domestic use if not exported.
The issue of crude oil exports is expected to be discussed with Turkish Oil Minister Hakan Fidan, who is set to visit Baghdad and Erbil on Wednesday.

Before the halt, Erbil exported around 400,000 barrels of oil daily through Ankara and approximately 75,000 barrels of Kirkuk oil daily through the same pipeline.

Source: Rudaw