The Iraq-Turkey Pipeline (ITP), which used to export oil from the Kurdistan Region to European, Asian, and United States markets via the Port of Ceyhan, was reopened on September 27, 2025. Over the past month, an average of 188,221 barrels per day (bpd) of oil from the Kurdistan Region’s fields have reached international buyers.
According to data from the State Oil Marketing Company of Iraq (SOMO) for October, the total volume of oil exported from Iraq - including Basra Heavy and Light crude, as well as Kirkuk oil that includes Kurdistan Region oil - amounted to 110,650,970 barrels.
The Kurdistan Region’s oil fields contributed approximately 5,834,864 barrels, representing around 5 percent of Iraq’s total oil exports to global markets.
In terms of pricing and market destinations, the Middle East Economic Survey (MEES) reports that Iraq exports three main grades of oil - Basra Light, Basra Heavy and Kirkuk Crude - at varying prices relative to the daily prices of Brent and West Texas Intermediate (WTI) benchmarks - to Asian, European and United States markets.
The most exported grade in October was Basra Light Crude, totaling 66 million barrels, followed by Basra Heavy Crude at 38 million barrels, and oil from the Kurdistan Region at 5.8 million barrels.
The leading energy publication further reports that Kirkuk oil, exported through the Port of Ceyhan primarily to European and US markets, was priced about $2.9 higher than Brent and $1.5 higher than WTI in October 2025. The Kurdistan Region’s oil traded at $68.89 per barrel in European markets and $63.29 per barrel in US markets, as shown in the table below.
In late September, the federal government, the Kurdistan Regional Government (KRG), and International Oil Companies (IOCs) reached a 20-point tripartite agreement that paved the way for the resumption of Kurdish oil exports.
Oil exports from the Kurdistan Region through the ITP had been suspended since March 2023, following a ruling by a Paris-based arbitration court in favor of Baghdad. The court determined that Ankara had violated a 1973 pipeline agreement by allowing Erbil to independently export oil beginning in 2014.
Before the suspension, data shows that most oil exported from the Port of Ceyhan had traditionally been shipped to European markets, rather than the US.
In October, Kurdistan Region oil exports generated approximately $401 million in gross revenue. After deducting the $16 per barrel cost - set by Baghdad as a fee for IOCs for production and transportation - the Kurdistan Region’s net revenue allocated to the federal government amounted to roughly $308 million.
As shown in the table below, exports from the Kurdistan Region have not only increased Iraq’s overall export volume, but have also contributed significantly to higher revenue. Additionally, the oil-rich Kirkuk province has complemented the Kurdistan Region’s exports to Europe, where prices are generally higher than those of Basra Light and Basra Heavy crude.
As part of the September agreement, the global research and consultancy firm Wood Mackenzie was tasked with reviewing contracts, investment levels, and per-barrel profit margins for IOCs operating in the Kurdistan Region, as well as determining the actual production cost per barrel.
However, as of early November, Wood Mackenzie has yet to begin its review. The primary reason is the absence of a clear mechanism or standardized contract format for conducting the work. The tripartite agreement did not define these procedures, and the firm has requested further clarification before proceeding.
Finally, September 2025 data shows that the total oil exports from Iraq and the Kurdistan Region to Asian and European markets generated $6.96 billion in revenue, with projections indicating a rise to $7.3 billion in October 2025. This increase is partly attributed to higher export volumes from the Kurdistan Region.
The key question now is whether the Kurdistan Region’s contribution - approximately half a billion dollars per month - will continue under the current export framework through 2026, and whether it will resolve the concerns of IOCs regarding production costs and outstanding debts.
Moreover, the tripartite agreement emerged after months of negotiations between Baghdad, Erbil, and the international oil companies (IOCs). With Iraq’s crucial legislative vote scheduled for November 11, it remains to be seen whether the accord will undergo revisions in the post-election period or if a new round of negotiations and meetings will be convened to resolve outstanding issues in the oil dossier.
Mahmood Baban is a research fellow at the Rudaw Research Center.
The views expressed in this article are those of the authors and do not necessarily reflect the position of Rudaw.
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