Baghdad and Erbil Renew Oil Export Understanding via Türkiye’s Ceyhan Terminal

Bosphorus News Energy Desk

Iraq’s federal government and the Kurdistan Regional Government (KRG) have reached a renewed understanding to resume oil exports through Ceyhan Oil Terminal, extending the arrangement through March 2026 as part of efforts to ease a long-running dispute that has disrupted northern crude flows.

According to officials in both Baghdad and Erbil, the understanding centers on restoring export coordination via Türkiye after prolonged interruptions caused by legal, technical, and political disagreements. The talks focused on aligning export mechanisms and revenue handling in a way that allows shipments to continue while broader issues remain under negotiation.

Kurdish authorities indicated that the renewed arrangement aims to prevent further economic strain in the Kurdistan Region, where the halt in exports has significantly reduced public revenues. Federal officials, meanwhile, stressed the need for exports to proceed under a framework that preserves Baghdad’s oversight of national oil policy.

The extension follows months of intermittent negotiations and comes amid growing pressure on Iraq to stabilize output and revenues as budgetary constraints deepen. Officials described the step as procedural but necessary to keep the export route operational.

Oil exports from northern Iraq through Türkiye have long been a critical artery for the country’s energy sector. The renewed coordination via Ceyhan suggests a tentative convergence of interests, even as deeper political and legal disputes between Baghdad and Erbil remain unresolved.