Restart of Kurdish Oil Exports Awaits Turkish Approval

Iraq's oil minister announced that the resumption of Kurdish oil exports awaits Turkey's approval, with flows expected in two days. Despite prior disruptions and geopolitical pressures, the Iraqi government remains committed to OPEC+ agreements, particularly concerning volumes controlled by the federal oil ministry.

Oil exports from the Iraqi Kurdistan region await Turkey’s nod, the Iraqi oil minister stated on Monday, with hopes for resumption in two days. The decision emerges from a need to adhere to OPEC+ compliance and manage exported volumes under Iraq's federal supervision.

Following Kurdish crude export agreements between Kurdistan and Baghdad, the recent halt originated in March 2023 when Turkey was ordered to compensate Iraq $1.5 billion over unauthorized exports. The U.S. pressure to resume exports looms, though an Iraqi official rebuffed any sanction threats.

Reinitiating the flow from Kurdistan is vital to counter potential reductions in Iranian exports, linked to the U.S.'s campaign against Tehran. Northern oil exports will not include Kirkuk field yields, as these are designated for local consumption, according to Iraqi officials.