Iraq-Turkey oil pipeline update and export restart considerations

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The Iraqi oil ministry disclosed that Baghdad is awaiting a final reply from Ankara regarding resuming exports through the Ceyhan terminal on the Turkish coast. This development comes as officials in Baghdad await Turkey’s assessment of potential damage to the pipeline caused by the powerful February earthquake, according to reporting carried by Reuters.

According to statements from the Iraqi side, Turkish authorities informed the government that they are evaluating whether the pipeline suffered damage in the seismic event that struck the region earlier this year. The pause in supply originated with the Kirkuk-Ceyhan pipeline on March 25, 2023, following a Paris-based international arbitral ruling that concluded Turkey had not complied with relevant terms for oil transit. Iraq has maintained a policy requiring oil movements from its territory to be conducted under Iraqi oversight and control, effectively barring Kurdish exports from bypassing Iraqi authorities.

There was cautious optimism from both Iraqi and Turkish officials about a restart of shipments from the Ceyhan port around April 4. Subsequently, on May 12, the Iraqi Ministry of Oil announced that contracts with international oil companies for shipments through Ceyhan would be renewed in line with the requirements of SOMO, the state-owned Iraqi marketing company. By May 13, exports from Iraqi Kurdistan continued to be reported, signaling a broader continuity of Iraqi oil movements within controlled channels and the ongoing coordination between Baghdad, Ankara, and international partners.

Analysts note that any resumption hinges on a clear verification of pipeline integrity, a transparent agreement on regulatory oversight, and continued alignment with the terms governing cross-border oil trade. The situation underscores the enduring complexity of energy exports in a region marked by shifting political and security dynamics. Observers will be watching closely to see whether repairs or upgrades at the pipeline’s Turkish facilities will enable a reliable flow of crude, and how these developments might influence Iraq’s and Turkey’s broader economic and strategic relationships. [citation: Reuters]

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