Original Source
Iraq and KRG Agree to Restart Kirkuk-Ceyhan Pipeline, Boosting Oil Exports
Initial Agreement to Resume Kirkuk-Ceyhan Pipeline Use
Iraq and the Kurdish Regional Government (KRG) have reached an initial agreement to resume the use of the Kirkuk-Ceyhan pipeline after a three-year hiatus. Oil has already started to flow from Iraq to Türkiye. Turkish Energy Minister Alparslan Bayraktar announced that output would be increased to 240,000 barrels per day, up from the current 140,000. He added that up to half of Iraq's usual 3 million barrels per day—roughly 1.5 million barrels—could eventually be transported through the Ceyhan pipeline, with the possibility of reaching new customers in the Mediterranean basin as well.
Iraq's Financial Outlook and KRG Demands
The additional revenue generated by the pipeline's restart will undoubtedly provide some relief for Baghdad, which is facing a 2025 budget deficit of $13 billion and has been exploring alternative ways to pay government workers. Meanwhile, the KRG still has its own demands from the federal government. It is calling on Baghdad to lift what it describes as a trade embargo, allowing the free flow of foreign currency into the country so traders can use dollars to import goods. The KRG also wants the federal government to provide security for oil infrastructure and transport, which have come under frequent attack from what the KRG describes as state-linked outlaws. US mediation may have helped secure this initial agreement.
De-escalating Tensions and Improving Cooperation
If Baghdad can address these concerns, it would mark a significant step towards de-escalating internal tensions while improving cooperation with the KRG in what has been an increasingly fractious relationship. This move is expected to contribute to better relations between the two entities.
*Source: YouTube: TRT World (2026-03-18)*
