Kurdish Crude Oil Reaches Türkiye on Path to Global Markets

ERBIL (Kurdistan24) – At precisely 6:50 AM on Saturday morning, after more than two and a half years of silent pipelines and crippling economic pressure, crude oil from the Kurdistan Region once again began its journey to world markets, flowing from the Peshkhabour oil field toward Türkiye’s Ceyhan port. The historic resumption, confirmed in a detailed announcement from the Kurdistan Regional Government’s (KRG) Ministry of Natural Resources, marks the successful culmination of months of intense and tireless negotiations, representing a landmark tripartite agreement between Erbil, the federal government in Baghdad, and international oil companies that officially ends a long and damaging stalemate for all of Iraq.

The Ministry of Natural Resources stated in its announcement that "at 7:00 AM this morning, Saturday, September 27, 2025, the export of Kurdistan Region's oil through the Kirkuk-Ceyhan pipeline successfully resumed," signaling a new era of cooperation and economic opportunity. This was echoed by officials on the ground, who confirmed the smooth and successful start to operations.

Amer Khalil, the Director General of the federally-run North Oil Company, announced in a press conference from the Zakho area that the process began even earlier, at 6:00 AM. "Thanks to God, at 6:00 AM this morning the export of the Region's oil began, with 190,000 barrels currently being exported, and this amount will increase in the coming weeks," Khalil stated. He emphasized that the restart was seamless, a testament to the close collaboration between all parties.

"The export process has not faced any problems, the process was very smooth with the cooperation of the employees of the North Oil Company, the employees of the Kurdistan investment companies, and the Ministry of Natural Resources," he said, confirming that "the Kurdistan Region's oil has reached Turkish territory, in order to reach world markets."

Confirmation also came swiftly from Ankara, a crucial partner in the export chain. Alp Arslan Bayraktar, the Turkish Minister of Energy and Natural Resources, posted on the social network X that at "07:07 AM this morning, Saturday, September 27, 2025, the process of resuming oil exports through the Iraq-Türkiye pipeline has begun."

The reopening of this vital economic artery reconnects the Kurdistan Region’s vast energy resources to the Mediterranean and beyond, with an initial 190,000 barrels of crude oil set to be marketed daily from the Ceyhan port under the management of Iraq's state oil marketing company, SOMO.

This breakthrough, celebrated as a monumental achievement by leaders in both Erbil and Baghdad, brings to a close a painful chapter that began on March 25, 2023, when a ruling by the Paris-based International Chamber of Commerce arbitration court effectively halted the independent export of Kurdish oil.

As previously detailed by Kurdistan24, the suspension inflicted a devastating economic toll, depriving the KRG of its primary revenue source, which led to chronic delays in public sector salary payments, and costing the Iraqi state as a whole billions of dollars in lost income.

The dispute was rooted in long-standing constitutional disagreements over resource management and revenue sharing, making the final agreement a significant political and diplomatic victory as much as an economic one.

The successful conclusion of what SOMO Director General Ali Nizar described as "30 months of negotiations" was hailed by leaders across the political spectrum.

Kurdistan Region Prime Minister Masrour Barzani, speaking on Saturday at a historic conference in Erbil, took a moment to announce the achievement to a global audience. "I want to point here to an important point of a historical event... once again today, this morning, the Kurdistan Region's oil was exported again to the world market," he declared, calling the agreement a "great achievement for all the people of Iraq, especially the people of the Kurdistan Region."

Iraqi Prime Minister Mohammed Shia' Al Sudani similarly described the deal as historic, emphasizing that it "ensures fair distribution of wealth, diversification of export outlets, and encouragement of investment."

Prime Minister Barzani also made a point to acknowledge the crucial diplomatic role played by international partners in reaching the accord, specifically mentioning "the role of the United States of America in particular, whether in Washington, or their ambassador in Baghdad, or their consul here in Erbil, who were truly great supporters for the success of this process."

He expressed his hope that the agreement would become "a reason for the advancement of the economic infrastructure and be in the service of all citizens."

The framework of the deal itself is a testament to the spirit of partnership that officials have emphasized. Under the interim agreement, which is valid for three months, the Kurdistan Region's fields are expected to produce approximately 240,000 barrels per day.

Of this, 190,000 bpd will be exported, while 50,000 bpd will be allocated for domestic consumption within the Kurdistan Region. The Iraqi Federal Ministry of Oil confirmed in a statement on Saturday that the restart was a "notable step toward managing national resources in a spirit of partnership and coordination."

The logistical operation is a complex, cooperative effort. As previously reported by Kurdistan24, crude from all eight producing fields in the Kurdistan Region is gathered at the Khurmala oil field before being transferred to the Peshkhabour station, from where it enters the nearly 600-kilometer pipeline to Ceyhan.

SOMO has contracted a major Swiss oil trading company to market the crude, which, upon reaching the Mediterranean, will be shipped to European markets, North America, and other global destinations. Ali Nizar of SOMO underlined the strategic importance of this for international energy security, noting that "Europe needs Kurdish oil as an alternative to Russian supplies."

For the international and local companies operating in the Kurdistan Region, the resumption is a vital lifeline. Khazal Auzer, Director General of Contracts and Economic Affairs at the KRG's Ministry of Natural Resources, spoke to Kurdistan24 about the heavy impact of the long suspension.

"For nearly three years, Kurdish oil was blocked from reaching international markets, forcing local companies to sell at prices below global levels. That meant less money in their hands and weaker investment, which reduced production," she explained. The new agreement, which will see IOCs receive $16 per barrel to cover costs through a transparent payment mechanism involving the U.S. Federal Reserve, is expected to restore investor confidence.

"We hope domestic companies will now receive their entitlements, boost production, and reinvest in their fields," Auzer stated, adding that "raising output is beneficial not only for the Kurdistan Region but also for Iraq as a whole." As the oil flows once more, it carries with it the tangible promise of economic recovery, renewed investment, and a more stable, cooperative, and prosperous future.