Who really controls Kurdistan’s gas? The Dana Gas deal, the KRG’s silence and the hidden cost of selling energy to Iraq

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By Dr. Pshtiwan Faraj | Kurdish Policy Analysis      A $2.239 billion arbitration settlement, a contract running until 2049, expanded rights for Pearl Petroleum and a new battle over gas sales to Baghdad are raising uncomfortable questions about who ultimately controls Kurdistan’s most strategic natural resource. The latest dispute over Khor Mor gas is exposing a much deeper problem in the Kurdistan Region’s energy sector: the public still does not appear to have a clear picture of who controls the region’s gas, who is authorized to sell it, and how much of its future value has already been committed to private companies. At the center of the controversy is Pearl Petroleum, the consortium led by Dana Gas and Crescent Petroleum, and a settlement agreement reached with the Kurdistan Regional Government (KRG) on August 30, 2017. Kurdistan Parliament member Kawa Sheikh Ali has now sharply criticized that agreement, asking why a government would effectively commit its natural ...

Iraq, Turkey Tripartite Agreement: sign one-year Ceyhan oil export deal targeting 750,000 barrels per day


By Dr. Pshtiwan Faraj / Kurdish Policy Analysis

Baghdad says the temporary agreement paves the way for restoring northern exports and eventually boosting capacity above one million barrels daily.

Iraq and Turkey sign a one-year agreement to resume Ceyhan oil exports targeting 750,000 bpd, with plans to eventually exceed one million barrels daily.

Iraq Moves to Restore Northern Oil Exports

Iraq has taken a significant step toward reviving its northern oil export corridor after announcing a one-year tripartite agreement with Turkey aimed at restarting crude exports through the Turkish port of Ceyhan.

The agreement, signed during a visit to Turkey by Deputy Prime Minister for Energy Affairs and Oil Minister Basim Mohammed Khudair, is designed to maintain oil exports while Baghdad and Ankara negotiate a broader long-term energy partnership.

According to Iraq's Ministry of Oil, the temporary accord serves as a bridge toward a comprehensive agreement covering multiple energy projects and expanding export infrastructure between the two countries.

A Three-Party Agreement

Oil Ministry spokesman Salim al-Rikabi said the arrangement includes:

  • Iraq's State Oil Marketing Organization (SOMO)
  • Iraq's North Oil Company
  • Turkey's state pipeline operator BOTAĹž

Together, the three entities will oversee the continued export of Iraqi crude through the Ceyhan terminal.

The agreement establishes an export capacity of 750,000 barrels per day, representing one of Baghdad's most ambitious attempts to revive northern exports since pipeline operations were disrupted.

Security in Kurdistan Remains the Key Variable

Despite the ambitious target, Iraqi officials acknowledged that reaching 750,000 barrels per day will depend on several conditions.

Among the most important factors are:

  • Improved security across the Kurdistan Region.
  • The return of international oil companies.
  • The resumption of oil production in fields currently shut down.
  • Increased movement of crude from southern Iraq to northern export infrastructure.

These conditions illustrate that infrastructure alone will not determine export volumes. Political stability, security, and commercial confidence remain equally important.

Preparing for a Larger Energy Partnership

Officials described the agreement as only the first stage of a much broader strategy.

Baghdad intends to negotiate a comprehensive long-term energy agreement with Turkey that would significantly expand export capacity once major infrastructure projects are completed.

Central to that strategy is the proposed Basra–Haditha–Kirkuk–Ceyhan pipeline, which would connect southern production with northern export routes.

Once operational, Iraqi officials believe exports through Ceyhan could exceed one million barrels per day, substantially increasing Iraq's export flexibility.

Strategic Importance of Ceyhan

The Turkish port of Ceyhan has long served as Iraq's primary northern export outlet.

Restoring high-volume exports through the route would provide several strategic advantages:

  • Diversify Iraq's export routes.
  • Reduce dependence on southern Gulf terminals.
  • Increase flexibility during regional disruptions.
  • Strengthen energy cooperation with Turkey.
  • Improve access to European markets.

For Ankara, renewed Iraqi exports would reinforce Turkey's role as a major regional energy transit hub.

Challenges Remain

While the agreement represents important progress, several obstacles remain before exports can reach planned levels.

These include:

  • Continued security concerns in parts of the Kurdistan Region.
  • The return of suspended foreign energy companies.
  • Coordination between Baghdad and Erbil over production.
  • Technical work needed to restore full pipeline operations.
  • Completion of new pipeline infrastructure.

Any delays in these areas could postpone the achievement of the agreement's export targets.

What Happens Next?

The one-year agreement provides Baghdad and Ankara with time to negotiate a permanent framework governing oil exports and broader energy cooperation.

If negotiations succeed and security conditions improve, Iraq could eventually restore northern exports to levels not seen in years while laying the groundwork for exporting more than one million barrels per day through the Ceyhan corridor.

For Iraq, the agreement is not simply about restarting a pipeline—it represents a broader effort to strengthen export resilience, attract investment, and expand the country's long-term energy infrastructure.

Key Takeaways

  • Iraq and Turkey signed a one-year tripartite agreement to resume exports through Ceyhan.
  • The deal involves SOMO, North Oil Company, and Turkey's BOTAĹž.
  • Target export capacity is 750,000 barrels per day.
  • Achieving that goal depends on improved security in the Kurdistan Region and the return of foreign oil companies.
  • Baghdad ultimately aims to raise exports above one million barrels per day through the future Basra–Haditha–Kirkuk–Ceyhan pipeline.

#Iraq #Turkey #Oil #Energy #Ceyhan

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