Iraq Confirms Over 1 Million Barrels Received From Kurdistan as First Tanker Loads in Ceyhan

ERBIL (Kurdistan24) - In the most significant and tangible sign yet that a new era of energy cooperation has dawned in Iraq, Minister of Oil Hayan Abdul Ghani announced on Saturday that the federal government has received more than one million barrels of crude oil from the Kurdistan Region since exports resumed last week.

The minister confirmed that the first tanker, with a capacity of 650,000 barrels, is now docked and loading at the Turkish port of Ceyhan, ready to carry the first federally-managed shipment of Kurdish oil to global markets.

This milestone, described by Abdul Ghani as a "great achievement," marks the successful operational start of a landmark tripartite agreement that has ended a crippling and costly two-and-a-half-year stalemate, promising to usher in a new chapter of shared prosperity and economic stability for all of Iraq.

Speaking to the official Iraqi News Agency (INA) from Basra, Minister Abdul Ghani detailed the historic nature of the resumed operations. "A few days ago, the process of pumping oil from the Kurdistan Region towards the Ceyhan port through the Iraqi-Turkish pipeline was resumed after a stoppage of more than two years for this line," he said, highlighting a crucial shift in the management of the nation's resources.

"For the first time, the federal government is receiving the oil produced in the Region and taking charge of the process of exporting it outside of Iraq." He confirmed the successful flow, stating, "the quantities received so far have reached around more than one million barrels," and noted that the loading of the first tanker was a key step toward realizing the economic benefits of the deal.

"The loading of this tanker will be completed and it will go to its contracted destination," Abdul Ghani explained, framing the achievement in national terms. "This matter is a great achievement by the federal government and the Region for the success in the process of resuming the export of the Region's oil and supplying the state budget with the necessary funds."

The smooth and successful loading of the first vessel is the culmination of a process that officially began at approximately 6:50 AM on Saturday, September 27, when the locked valves at the Peshkhabour oil station were reopened, allowing crude from the Kurdistan Region to once again enter the nearly 600-kilometer pipeline to the Mediterranean.

The historic restart was the product of months of tireless and complex negotiations between the Kurdistan Regional Government (KRG), the Iraqi federal government, and the international oil companies (IOCs) operating in the region. The breakthrough officially ended a painful chapter that began on March 25, 2023, when a ruling by a Paris-based arbitration court effectively halted the independent export of Kurdish oil, severing a vital economic lifeline for the KRG and costing the Iraqi state billions in lost revenue.

The agreement has been hailed as a monumental achievement by leaders in both Erbil and Baghdad. Kurdistan Region Prime Minister Masrour Barzani described it as the "result of tireless efforts and months of negotiation by teams on all sides," and a "great achievement for all the people of Iraq."

Iraqi Prime Minister Mohammed Shia' al-Sudani similarly celebrated the deal, emphasizing that it would ensure the "fair distribution of resources" and strengthen Iraq's national revenues. Both leaders acknowledged the crucial diplomatic role played by international partners, with Prime Minister Barzani specifically thanking the United States for being "truly great supporters for the success of this process."

Underpinning this new era of cooperation is a detailed and legally binding framework designed to ensure transparency and provide financial certainty for all parties. As confirmed by Minister Abdul-Ghani, the tripartite agreement is legally binding on all signatory foreign companies.

Under the terms of the deal, all crude produced in the Kurdistan Region is now handed over to Iraq’s State Oil Marketing Organization (SOMO), which manages its sale on global markets. To ensure payment security for the IOCs, a carefully structured mechanism has been put in place.

The Iraqi government will compensate the companies through in-kind deliveries of crude oil at the port of Ceyhan. A designated marketer will handle the sale of this oil and transfer the proceeds into a secure escrow account on behalf of the companies.

Furthermore, in line with Iraq’s amended Budget Law, the Ministry of Finance will provide an interim payment of $16 per barrel to cover the production and transportation costs for each barrel of crude delivered to SOMO. This financial certainty is seen as a critical component for restoring investor confidence and encouraging the renewed investment needed to boost production.

Khazal Auzer, Director General of Contracts and Economic Affairs at the KRG’s Ministry of Natural Resources, had previously highlighted the severe impact of the long export halt, which forced local companies to sell at below-market prices, stifling investment and causing production to decline.

"We hope domestic companies will now receive their entitlements, boost production, and reinvest in their fields," she stated, noting that "raising output is beneficial not only for the Kurdistan Region but also for Iraq as a whole."

The economic benefits of the resumed exports are expected to be substantial and immediate. The Eco Iraq Observatory, an economic analysis group, has projected that the restart will provide Iraq with a daily revenue of more than three million dollars, which will be instrumental in resolving the long-standing issue of delayed salary payments for public sector employees in the Kurdistan Region.

The initial flow of 190,000 barrels per day (bpd) is expected to increase to 230,000 bpd in the near future, with an additional 50,000 bpd allocated for domestic consumption within the Kurdistan Region.

Beyond the immediate financial infusion, the reopening of the northern export route holds immense strategic importance for all of Iraq. Oil and gas expert Dr. Govand Sherwani explained that the southern ports of Basra are operating at or beyond their capacity, meaning that the Ceyhan pipeline is "the only way to increase oil exports from Iraq's share."

The pipeline, with a capacity of up to one million barrels per day, not only allows for significant growth in export volumes by potentially including oil from Kirkuk but also provides Iraq with a vital strategic alternative to the Persian Gulf and the politically volatile Strait of Hormuz.

The resumption is also a significant development for global energy security. At a time of heightened geopolitical tensions, the return of Kurdish crude to the market is seen as a major boost for Turkey and Europe, providing a reliable and cost-effective alternative to Russian energy supplies.

Ali Nizar Al-Shatri, the director of SOMO, has explicitly stated that "Europe needs Kurdish oil as an alternative to Russian supplies," confirming that shipments will be destined for European, North American, and other international markets.

As the first tanker at Ceyhan completes its loading, it carries more than just crude oil; it carries the tangible promise of a more stable and cooperative future. The resolution of the long-standing oil dispute is widely seen as a potential catalyst for solving other pending issues between Erbil and Baghdad.

As Dr. Sherwani noted, with the oil file resolved, "no excuse will remain for the Iraqi government to create problems on other issues like salaries and the budget." The one million barrels now in federal hands and the tanker preparing to set sail are the first concrete dividends of a hard-won peace, signaling that a new, legally binding, and mutually beneficial partnership is finally underway.