Iraqi Government and Kurdish Authorities Agree to Resume Oil Exports to Turkey's Ceyhan Port

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By Ahmed Rasheed and Yomna Ehab

BAGHDAD, March 17 (Reuters) - The Iraqi government and the Kurdistan Regional Government (KRG) have reached an agreement to resume oil exports to Turkey's Ceyhan energy hub starting Wednesday, Iraq's oil minister announced on Tuesday.

Oil flow from the Ceyhan port is expected to begin at 10 a.m. local time (0700 GMT) on Wednesday, according to state media citing Iraqi Oil Minister Hayan Abdel-Ghani.

The KRG confirmed the agreement in a statement, saying both sides will form a joint committee to prepare for resuming oil exports via the region's pipeline starting Wednesday, with revenue to be returned to the federal treasury.

The two parties also agreed to implement necessary security measures to protect oilfields and ensure the continuity of export operations, the KRG added.

KRG Prime Minister Masrour Barzani posted on X that the region would allow crude exports through the Kurdistan pipeline at the earliest possible time "in light of the exceptional circumstances the country is confronting."

He added, "Discussions with Baghdad will continue to urgently lift restrictions on imports and trade to the region, and to provide the necessary guarantees to oil and gas companies to ensure they can resume production in a safe environment."

Later, Barzani stated on X that during a phone call with U.S. envoy Tom Barrack, he instructed the KRG team to provide all necessary facilities to resume oil exports in the interest of citizens amid the difficult circumstances.

On Sunday, Iraq's Kurdish authorities said Baghdad had failed to address security and economic challenges facing the oil sector, rejecting accusations that they were refusing to allow crude exports through the regional pipeline.

This statement followed Iraq's oil ministry's claim that the KRG had refused to permit use of a pipeline as an alternative route for crude flows disrupted by the Iran conflict, accusing Kurdish authorities of imposing arbitrary conditions.

Production Plunge from Iran Conflict

Earlier on Tuesday, the Iraqi presidency urged both the federal government and the KRG to cooperate to resume crude oil exports, according to a presidency statement.

Iraq's parliament also issued a seven-point decision during a session focused on oil exports through the Ceyhan pipeline, calling on the federal government to find outlets for Iraqi crude to avoid economic damage amid current security conditions, the state news agency reported.

The parliamentary decisions appeared aimed at reinforcing Baghdad's authority over the country's oil sector and followed a late meeting on Tuesday with Iraq's oil minister to assess the impact of halted oil exports after the closure of the Strait of Hormuz.

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