Iraq has resumed limited crude oil exports of 250,000 barrels per day (bpd) through the Turkish port of Ceyhan, marking a significant step toward stabilising its energy sector amid ongoing regional disruptions.
The state-owned North Oil Company announced on Wednesday, March 18, 2026, that it has begun operating the Sarlo pumping station to restart the flow of Kirkuk crude to Ceyhan via the pipeline running through the Kurdistan Region. Officials confirmed that exports resumed at an initial capacity of 250,000 bpd following an agreement between Baghdad and the autonomous Kurdistan Regional Government (KRG).
The development comes after Iraq’s oil output was severely affected by disruptions linked to tensions surrounding the Strait of Hormuz, a critical global shipping route through which a substantial share of the world’s crude oil and liquefied natural gas normally passes. Prior to the crisis, Iraq exported most of its oil — averaging about 3.5 million bpd — through southern fields via the Strait.
According to Iraqi authorities, the resumption followed a period of negotiations aimed at resolving longstanding disputes over revenue sharing, export mechanisms, and pipeline operations. The Kirkuk-Ceyhan pipeline, which connects northern oil fields to the Mediterranean terminal in Turkey, had faced repeated suspensions due to legal and political disagreements.
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Officials said discussions with regional authorities helped pave the way for the restart, with both sides agreeing to implement measures to safeguard operations and ensure continuity. Authorities added that efforts are ongoing to expand export volumes as conditions improve.
Energy analysts say the renewed flow through Ceyhan could provide partial relief to Iraq’s economy, where crude oil sales account for roughly 90 percent of government revenues. The resumption is expected to ease fiscal pressure, improve foreign exchange inflows, and support budget stability, though volumes remain below pre-disruption levels.
The government has indicated that stabilising exports remains a priority as it works to protect national revenue and strengthen its position in global energy markets.