Iraq announced plans to resume Kirkuk oil exports through the Kurdistan Region’s pipeline. Kirkuk oil exports, suspended nearly three years ago, will restart at 50,000 barrels per day. Federal Oil Minister Hayyan Abdul Ghani confirmed the plan during a press briefing in Erbil yesterday. Preparations are underway to transport Kirkuk oil exports to Turkey’s Ceyhan port efficiently. Authorities are also working to increase Kurdistan Region’s current daily oil exports to 210,000 barrels.
The exports were halted in March 2023 after an international court ruled in favor of Baghdad against Ankara’s pipeline practices. The court stated Turkey violated a 1973 pipeline agreement by allowing Erbil to export oil independently starting in 2014. Before the suspension, Erbil exported roughly 400,000 barrels daily, while Kirkuk contributed an additional 75,000 barrels to total shipments. Officials emphasized the importance of resuming Kirkuk oil exports to stabilize national energy revenue streams effectively.
Last September, exports from Kurdistan restarted following a tripartite agreement between Baghdad, Erbil, and international oil companies. The three parties extended the agreement for three more months to ensure continuous deliveries through the Iraq-Turkey pipeline. Iraqi authorities stated they are in ongoing discussions to further renew the export deal. Hayyan Abdul Ghani confirmed the Kurdistan Regional Government expressed willingness to maintain the current agreement’s terms and continue cooperation.
In addition to pipeline operations, Iraq signed preliminary agreements enabling Chevron Corporation to manage some of its largest oil fields. Chevron will take temporary control of West Qurna 2 in southern Basra, aiming to increase production to 750,000-800,000 barrels per day. Basra Oil Company will initially manage the field before transferring operations fully to Chevron under a finalized contract. The project expects to create thousands of new jobs for Basra residents during the operational transition period.
Chevron also plans to restart the long-dormant Balad oil field in Salahaddin province, which could produce approximately 300,000 barrels daily. North Oil Company director Amer Khalil stated Chevron would begin work in one to ten days. These developments reflect Iraq’s broader strategy to expand energy output, enhance regional exports, and improve economic stability through Kirkuk oil exports.
The government highlighted that renewed exports will strengthen Iraq’s international energy presence. Officials said continuous coordination between federal authorities and the Kurdistan Regional Government is vital for ensuring smooth Kirkuk oil exports. Analysts predict the combined increase in oil production and pipeline deliveries will boost Iraq’s revenues substantially.
