Iraq and Turkey have reached an agreement to restart oil exports through the Kirkuk-Ceyhan pipeline, ending a freeze of more than two years.
Iraq’s State Oil Marketing Organization (SOMO) has struck a deal with Turkish companies to resume flows, while a parallel revenue-sharing arrangement between Baghdad and Iraq’s Kurdistan Regional Government (KRG) covers both oil and non-oil income.
Officials in Erbil have called on Iraq’s federal government in Baghdad to meet its obligations by releasing overdue public sector salaries in the region.
A delegation from the KRG is expected in Baghdad this week to finalize technical details for resuming exports.
The federal oil marketer has indicated readiness to handle crude once producing companies conclude negotiations.
The Kirkuk-Ceyhan line, which previously carried about 400,000 barrels per day, has been shut since March 2023 following arbitration between Baghdad and Ankara.
The resumption is seen as a potential breakthrough in resolving a long-running dispute over export management and revenue distribution.