Oil experts are evaluating the possibility that the disrupted oil exports from Iraq to Turkey, put on hold due to disagreements between Erbil and Baghdad last year, may find resolution with the upcoming visit of President Recep Tayyip Erdogan.
The oil flow from Iraq to the Ceyhan Port stopped on March 25, 2023, following a verdict by the Paris-based International Arbitration Court regarding oil exports between Turkey and Iraq. This pause in exports has led to an estimated $14 billion in losses for the Iraqi economy over the past year due to the failure of Erbil and Baghdad to reach a consensus.
President Erdogan’s scheduled trip to Iraq on April 22 is expected to place a strong emphasis on the potential resumption of oil exports. Iraqi energy experts anticipate that restarting oil exports from Iraq to Turkey could have mutually beneficial implications for both nations while improving relations between Baghdad and Erbil.
Energy expert Mazin es-Saad highlighted the ongoing diplomatic engagements between Iraq and Turkey, suggesting that President Erdogan’s visit may pave the way for resolving the oil export issue. He expressed optimism for positive outcomes that would serve the interests of both countries.
Moreover, energy expert Hamza Cevahiri noted that Iraq has concluded the restoration of the oil pipeline from Kirkuk to Fishkhabur, where trial oil shipments have successfully taken place.
Firat Musevi, Chairperson of the Iraq Energy Center, emphasized the importance of bringing oil produced by the Kurdistan Regional Government (KRG) under the central government’s supervision to bolster Iraq’s oil export capabilities to Turkey.
Sehriyar Seyhler, another energy expert, underscored the significant role of oil exports in the KRG economy. He highlighted that the primary issue between Baghdad and Erbil revolves around oil and pointed out that the resumption of exports could attract back companies and investments to the region, thereby aiding economic growth and stability.
