Iraq restarts oil exports from Kurdistan region to Türkiye

Core Points - Iraq has resumed oil exports from the Kurdistan region to Türkiye after a hiatus of over two and a half years, following an interim agreement involving Iraq's Federal Government, the Kurdistan Regional Government (KRG), and foreign oil producers [1][2] - The agreement allows for the transport of 180,000 to 190,000 barrels per day (bpd) of crude oil to Türkiye's Ceyhan port, with plans to increase this volume to 230,000 bpd [2][6] - The resumption of exports is expected to alleviate economic pressures in the Kurdistan region, which has been facing salary delays and service cuts [3] Industry Impact - Iraq, as the second-largest oil producer in OPEC, exports approximately 3.4 million barrels per day from its southern ports, and the addition of northern exports is anticipated to enhance overall production capacity [3][4] - The U.S. government has supported the restart of exports, viewing increased supply as a means to potentially lower crude prices [5] - Eight oil companies in Iraqi Kurdistan, which account for over 90% of the region's production, have reached agreements to resume exports under the new deal [5][6] Future Plans - The preliminary plan requires the KRG to deliver at least 230,000 bpd to the State Oil Marketing Organisation (SOMO), with an additional 50,000 bpd allocated for local use [6] - The involved parties are scheduled to meet within 30 days to discuss settling outstanding debts owed by the KRG to producers [6]