Iraq’s Kirkuk-Ceyhan pipeline resumed oil flows on September 27 for the first time since early 2023. Under a US-mediated agreement between Iraq, the Kurdistan Regional Government (KRG), Turkey, and foreign oil companies, 180,000–190,000 barrels per day (bpd)of crude now flows south from Kirkuk to Turkey’s Mediterranean port of Ceyhan. Turkish officials anticipate an eventual rise to about 230,000 bpd — close to the level before the 2023 shutdown. The reopening ends a two-year impasse triggered by a March 2023 order by a tribunal of the International Criminal Court, which fined Turkey $1.5 billion for allowing the KRG to export oil independently of authority from Baghdad. Under the new deal, all crude from KRG fields will be delivered to the Iraqi federal State Oil Marketing Organization (SOMO) for export. About 50,000 bpd will remain for local consumption, with the remainder sent to Ceyhan. The arrangement will effectively restore Iraq’s export capacity to nearly 3.6 million bpd. For Iraq, clearing the bottleneck boosts revenues and economic stability. For the KRG, it revives its long-stalled oil economy under federal oversight. Turkey is also a major beneficiary.
New and Revived Energy Partnerships Boost Turkey and East-West Trade Routes • Stimson Center
