Iraq oil exports suspension brings $28 billion losses as the halt of northern shipments continues to harm the economy. Safeen Dizayee, Head of the Kurdistan Regional Government’s Department of Foreign Relations, confirmed the massive losses during a press conference. He explained that since March 2023, Iraq lost more than $28 billion because of blocked exports through the Iraq-Turkey pipeline.
The Kurdistan Regional Government recently announced progress after talks with Baghdad. Both sides reached a deal to restart exports through the Turkish port of Ceyhan. The agreement came after more than three weeks of discussions. Officials also carried out site visits to northern oil fields before finalizing the framework. The deal now creates a system for oil exports from the Kurdistan Region of Iraq.
The halt in exports lasted for over two years. The Kirkuk-Ceyhan pipeline, which stretches 970 kilometers, remained closed during this period. The suspension caused huge losses and created divisions between Erbil and Baghdad. Iraq oil exports suspension finally moved toward resolution after this new agreement.
At present, Iraqi Kurdistan produces about 280,000 barrels of oil per day. From this total, 50,000 barrels per day stay in the region for domestic needs. The other 230,000 barrels per day go to the State Organization for Marketing of Oil, known as SOMO. This structure ensures that production supports both local energy needs and national exports.
The suspension followed a ruling from the International Chamber of Commerce in Paris. The court decided that Turkey violated a 1973 convention. Ankara had allowed oil exports without approval from the federal government in Baghdad. As a result, the court ordered Turkey to pay $1.5 billion in compensation for past losses. These losses came from unlawful shipments sent between 2014 and 2018.
The new framework between Erbil and Baghdad signals hope for improved cooperation. If exports resume smoothly, Iraq could reduce economic damage and regain vital revenue. Iraq oil exports suspension remains one of the most pressing issues for the country’s economy, and resolving it stands as a top priority.