Iraq’s federal government and the Kurdistan Regional Government (KRG) have signed a temporary agreement to restart northern oil exports through Turkey, as part of a broader deal to end decades of political and economic disputes.
Turkey stopped pumping about 450,000 barrels per day of Iraqi crude through a pipeline from the Fish-Khabur border area to its Ceyhan port on March 25, after Iraq won an arbitration case.
Under the deal, Iraq’s state-owned marketing company SOMO will have the authority to market and export KRG oil, and the revenues will be deposited in an account at the Iraqi Central Bank under the control of the KRG.
The deal is temporary until the budget law passes in parliament.
Crude flows are yet to restart.
