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Iraq and Turkey have finalized an agreement that paves the way for crude exports to restart through the Kirkuk-Ceyhan pipeline, bringing an end to more than two years of suspension.

The deal, announced by Iraq’s State Oil Marketing Organization (SOMO), involves cooperation with Turkish companies and is backed by a revenue-sharing framework between Baghdad and the Kurdistan Regional Government (KRG). The arrangement is expected to cover both oil revenues and non-oil income.

KRG officials have urged Baghdad to honor financial commitments, particularly the release of delayed salaries for public sector workers in the region. A Kurdish delegation is due in the capital this week to iron out the technical and administrative details needed before flows resume.

Once upstream companies complete final negotiations, SOMO said it is ready to manage exports immediately. Prior to its closure in March 2023, the Kirkuk-Ceyhan route transported around 400,000 barrels per day. The halt followed a legal dispute between Baghdad and Ankara that stalled shipments and deepened tensions over export rights.

Observers see the restart as a significant breakthrough that could ease long-standing disagreements between the federal government and the KRG while boosting Iraq’s position in regional energy markets.