The pipeline export of Kurdish oil to Turkey was halted in March 2023.

The trigger was an arbitration ruling by the International Chamber of Commerce (ICC). The ICC ordered Turkey to pay Iraq $1.5 billion for unauthorized Kurdish oil exports made from 2014 to 2018, declaring that exports by the KRG via Turkey breached agreements.

In essence, the export was considered illegal under Iraq’s national oil marketing authority (SOMO), and the dispute over who had the legal right to export (Baghdad vs KRG) led to the shutdown.

🔄 Resumption / Who Did It

On September 27, 2025 (at ~6:50 a.m. local time), crude exports from the KRG to Turkey resumed.

The restart was made possible by a tripartite agreement involving:

Iraq’s federal government (Baghdad)

Kurdistan Regional Government (KRG, Erbil)

International oil companies (IOCs) operating in the region

Under the deal, production from the KRG fields will now go through SOMO (Iraq’s State Oil Marketing Organization), which will manage exports via the Kirkuk–Ceyhan pipeline.

An initial export volume of 180,000 to 190,000 barrels per day (bpd) is expected, with scope to increase to ~230,000 bpd.

The U.S. government had pushed for a restart, as higher supply could help ease crude prices, something the Trump administration has prioritised while simultaneously pledging to cut neighbouring Iran's crude exports to zero.

https://www.reuters.com/business/energy/why-iraq-turkey-oil-pipeline-was-halted-2-12-years-2025-09-27/