Türkiye yet to receive confirmation on restarting Iraq oil pipeline
A handout picture released by Iraq's Prime Minister's Media Office on January 2, 2025, shows a partial view of the oil refinery of Baiji north of Baghdad, during the inauguration ceremony of the fourth and fifth units. (Photo by Iraqi Prime Minister's Press Office / AFP)
Türkiye has yet to receive confirmation from Iraq on the resumption of oil flows through the Iraq-Türkiye pipeline, casting uncertainty over expectations of an imminent restart, Turkish Energy and Natural Resources Minister Alparslan Bayraktar told media outlets Wednesday.
No notification from Iraq on oil flow resumption
Bayraktar told reporters in Ankara that Türkiye has yet to receive official notice on restarting crude exports through the Iraq-Ceyhan pipeline.
“A notification still hasn’t been made to Türkiye on the resumption of flow through the Iraq-Ceyhan pipeline,” Bayraktar said.
The pipeline, which transported about 450,000 barrels per day (bpd) of crude from Iraq’s semi-autonomous Kurdish region before being halted in 2023, remains a crucial export route for the region.
Iraq signals restart, but issues remain
Iraq’s Oil Minister Hayyan Abdul Ghani said Monday that oil flows should resume “within a week, Allah willing.”
A delegation from Iraq’s Oil Ministry and state-run marketer SOMO visited Erbil, the Kurdish regional capital, to discuss the mechanism for receiving Kurdish oil, Iraq‘s state news agency INA reported Tuesday.
Despite Iraq’s optimism, financial and legal issues have delayed the restart.
The pipeline was shut down in March 2023 after the International Chamber of Commerce (ICC) ordered Türkiyee to pay Baghdad $1.5 billion in damages for unauthorized oil exports from the Kurdish Regional Government (KRG) between 2014 and 2018.
A separate arbitration case covering 2018 onward remains unresolved.
Economic impact of oil halt in KRG
The suspension of oil exports has placed significant financial strain on the KRG, leading to salary delays for public sector employees and cuts to essential services.
A resumption is expected to alleviate economic pressure in Erbil and improve relations between the Kurdish Regional Government and Iraq’s central government.
Iraq, the second-largest producer in the Organization of the Petroleum Exporting Countries (OPEC), currently pumps around 4 million bpd, adhering to OPEC+ production targets. However, it remains unclear how Iraq will manage increased northern exports while staying compliant with OPEC+ production cuts.
Türkiye has maintained that the Iraq-Türkiye pipeline has been ready to resume operations since late 2023. However, Bayraktar’s remarks indicate that Ankara is still awaiting formal authorization from Baghdad.
