The federal government of Iraq expects to receive 250,000 bbl/d from the semi-autonomous Kurdistan Region of Iraq by early 2020, to export it through pipelines to the port of Ceyhan in Turkey.
The province of Kurdistan has long been engaged in a political fight against the central government of Iraq, which claims sole authority over Iraqi crude. Kurdistan produces more than 400,000 bbl/d of crude oil and started to export oil independently through a new crude oil pipeline delivering locally-produced oil to Ceyhan in December 2013. Negotiations between Iraq's State Oil Marketing Organization (SOMO) and the province regularly stumbled but parties finally reached an agreement on the delivery of 250,000 bbl/d in 2017. This amount was included in the 2018 and 2019 budget of the Kurdistan Regional Government (KRG) but deliveries have not started yet. In late 2018, the KRG upgraded the capacity of its crude oil export pipeline, from 700,000 bbl/d to 1 mb/d.