Iraq Moves to Extend Kurdistan Oil Export Deal as Ceyhan Deadline Nears
By Bosphorus News Energy Desk
Iraq's oil talks with the Kurdistan Regional Government and international producers are moving back toward the September 2025 tripartite framework, as Baghdad seeks to extend the Kirkuk-Ceyhan pipeline agreement with Türkiye beyond its July 2026 expiry.
The current talks are aimed at keeping that mechanism alive after months of disputes over payments, production costs, old debts and security guarantees around fields operated by international oil companies in the Kurdistan Region.
Iraq's Oil Ministry spokesman Salim al-Rukabi told Kurdistan24 that a "very good" tripartite understanding had emerged between the federal Oil Ministry, the Kurdistan Regional Government's Ministry of Natural Resources and international oil companies. The same file had already drawn official backing in September 2025, when Baghdad, Erbil and producers agreed on a mechanism to resume exports under federal oversight.
At the time, the Kurdistan Regional Government's Ministry of Natural Resources said exports would resume within 48 hours, while the State Organization for Marketing of Oil (SOMO) would handle sales through the federal system. KRG Prime Minister Masrour Barzani described the agreement as the result of months of work by all sides, and U.S. and British officials welcomed the deal as a step toward wider economic stability in Iraq.
The mechanism began operating on September 27, 2025, when oil exports from the Kurdistan Region resumed through Türkiye's Ceyhan terminal. KRG material later said the first day's flow reached 190,000 barrels and that more than 19.5 million barrels were exported through SOMO during the final 95 days of 2025.
The renewed talks now sit directly inside the Ceyhan deadline. Bosphorus News reported on Tuesday that Baghdad has asked Ankara to extend the Kirkuk-Ceyhan oil pipeline agreement beyond its July 2026 expiry, while Türkiye is resisting a simple rollover of the old terms.
The Ceyhan deadline turns the Erbil-Baghdad dispute into a route question for Iraq and Türkiye. A deal with producers can restore volumes only if the pipeline arrangement with Ankara also remains usable after July 2026.
Current northern flows remain well below the pipeline's wider capacity. Reuters has reported that the Kirkuk-Ceyhan system can carry about 1.5 million barrels per day, but that April flows from Kirkuk to Türkiye stood at around 177,000 barrels per day. Kurdistan24 has reported expectations that initial production could move around 200,000 barrels per day, with higher volumes depending on commercial settlement and field security.
Security is now part of the export equation. Kurdistan24 reported that Iraqi security officials have discussed field protection in Erbil and that the Kurdistan Region is expected to receive an air-defense system as oil production nears restart. That claim should be read as part of the wider protection framework around foreign operators and energy infrastructure, not as a confirmed deployment unless separately announced by an official authority.
Pressure around the Strait of Hormuz has also pushed northern routes higher on Baghdad's energy agenda. Bosphorus News reported earlier that Iraq's dependence on southern export routes gives Ceyhan renewed value when Gulf security risks tighten around Hormuz. Reuters reported in May that Iraq's exports through Hormuz had dropped sharply from pre-war monthly levels, reinforcing the value of a northern route through Türkiye inside Iraq's export planning.
For now, the September 2025 framework remains the operating base. Whether it can carry more oil toward Ceyhan depends on producer payments, field security, SOMO control and the terms Türkiye accepts for the pipeline after July 2026.
Sources: Iraq's Prime Minister's Office, KRG Ministry of Natural Resources, KRG Prime Minister Masrour Barzani, SOMO, U.S. State Department, UK Embassy Baghdad, Kurdistan24, Reuters, Bosphorus News review and reporting.