Eight international oil companies operating in Iraq’s semi-autonomous Kurdistan region announced that they would not resume oil exports through Turkey’s Ceyhan port on Friday, despite Baghdad’s declaration that the restart was imminent, Reuters reports.
Meanwhile, the US has been urging Baghdad to permit Kurdish oil exports via Turkey. This move could potentially increase global oil supply, aligning with Washington’s strategy to reduce Iranian oil exports as part of its broader “maximum pressure” campaign.
Baghdad, maintaining relationships with both Washington and Tehran, is cautious about being entangled in the repercussions of Trump’s strategy to pressure Iran. Iran considers its neighbor and ally Iraq crucial for sustaining its economy under sanctions.
Recently, Iraqi Oil Minister Hayan Abdel-Ghani indicated that the pipeline would soon resume exports. The government announced on Friday that it would declare the resumption shortly, with an initial export of 185,000 barrels per day (bbl/d) through the state oil marketer SOMO, planning to gradually increase this quantity over time.
The Association of the Petroleum Industry of Kurdistan (APIKUR), which accounts for 60% of the region’s oil production, stated that no formal communication had been made regarding clear commercial agreements or guarantees for past and future export payments. Myles Caggins, APIKUR’s spokesperson, emphasized, “To be clear, APIKUR member companies will not resume oil exports today.” APIKUR’s members include notable companies such as Gulf Keystone Petroleum, DNO, Genel Energy, and ShaMaran Petroleum.
The government did not provide an immediate response to inquiries sent outside office hours. The Ceyhan pipeline, which transports oil, was shut down by Turkey in March 2023 following an order from the International Chamber of Commerce (ICC) that Ankara pay Baghdad $1.5 billion in damages for unauthorized exports between 2014 and 2018.
Iraqi Kurdistan authorities have reached an agreement with the federal oil ministry to restart crude exports based on available volumes, according to the Kurdistan Regional Government.
Meanwhile, the US administration, under former President Donald Trump, has been urging Iraq to permit the resumption of Kurdish oil exports. However, an Iraqi official denied that this pressure included threats of sanctions.
