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Iraq and KRG Restart Ceyhan Oil Exports Following Pipeline Deal

Initial flows of roughly 100,000–250,000 bpd offer limited relief from the Hormuz shipping shutdown.

Overview

  • Iraqi officials said oil would start moving through the Kirkuk–Ceyhan line at 10 a.m. local time on Wednesday.
  • Baghdad and Erbil agreed to form a joint committee, return export revenues to the federal treasury, and implement security measures to safeguard operations.
  • Initial rates are reported between about 100,000 and 250,000 barrels per day from northern fields, with volumes expected to build from Kirkuk.
  • Oil prices dipped on the news, yet the restart cannot counter the larger losses after the Hormuz disruption slashed southern output to roughly 1.3–1.4 million bpd.
  • Iraq is pursuing additional outlets, including talks with Iran for limited tanker passage and potential overland routes, while security and political frictions keep continuity risks high.