Kurdish Oil Exports Are Yet To Resume, Turkey’s Election Could Cause Further Delays

Northern Iraqi crude oil flows to Turkey’s port of Ceyhan have not yet resumed, following Baghdad’s request to restart flows last week, while Turkey’s second round of elections on 28 May could further delay the restart.

• Iraq was forced to halt around 470kbpd of crude exports from the northern region on 25 March through the export pipeline to the Turkish port of Ceyhan. The stoppage removed around 400kbpd of crude oil controlled by the KRG and 70kbpd controlled by the federal Iraqi government.
• Following the halt end March, several oil firms such as Norway’s DNO ASA started to shutdown its operated oil fields in the Kurdistan region.
• On 4 April, the Iraqi federal government and the KRG reached an agreement to resume oil exports through Turkey. Both sides hoped to restart crude flows shortly after, but Iraq has been waiting for a response from Turkey.
• Reports in early April stated that Turkey wants to negotiate with Iraq a settlement that is has been ordered to pay.
• Iraq has petitioned a US federal court to enforce an arbitration award against Turkey related to Iraqi oil exports through the pipeline to Ceyhan port.
• According to Argusmedia, Turkey wants another case that covered flows in the period from 2018 onward resolved, before reopening the pipeline. Other sources said, Turkey is seeking in-person negotiations relating to the $1.5bn it was ordered to pay Iraq in damages.
• In late-April, the Iraqi federal government, KRG, SOMO and oil companies signed an agreement to resume oil exports, clarifying technicalities, Iraq’s Prime Minister Mohammed Shia Al-Sudani said. Both governments agreed that the selling of oil from Iraq’s northern fields, including the Kurdish region, will only be carried out by Iraq’s SOMO.
• A spokesperson from the Iraqi government said in late April, the Turkish authorities have requested a short period of time to examine the oil-pumping lines and pipelines to ensure their safety.
• Iraq has requested a response from Turkey’s Botas in order to resume exports from its northern region but is yet to receive an answer.
• Iraq’s oil minister hoped to resume flows on 13 May at a rate of 500kbpd but the outstanding response from Turkey has prevented Iraq from resuming exports.
• Turkey held general elections on 14 May, with a second and final round taking place on 28 May, which is likely to cause further delays to an official response from Turkey.