• 2 minutes Oil prices going down
  • 11 minutes China & India in talks to form anti-OPEC
  • 16 minutes When will oil demand start declining due to EVs?
  • 44 mins Oil prices going down
  • 4 hours We Need A Lasting Solution To The Lies Told By Big Oil and API
  • 1 day Trump Hits China With Tariffs On $50 Billion Of Goods
  • 4 hours Another WTH? Example of Cheap Renewables
  • 2 days Bullish and bearish outlook for oil
  • 2 days Rolls Royce shedding 4,600 jobs
  • 2 days After Trump-KJU, Trump-Putin Summit
  • 54 mins What If Canada Had Wind and Not Oilsands?
  • 1 day When will oil demand start declining due to EVs?
  • 1 day Russia's Rosneft 'Comfortable' With $70-$80 Oil Ahead of OPEC Talks
  • 4 hours The Wonderful U.S. Oil Trade Deficit with Canada
  • 2 days U.S. Cars Will No Longer Need 55mpg Fuel Efficiency By 2025.
  • 3 hours The Permian Mystery
  • 8 hours China & India in talks to form anti-OPEC
  • 22 hours Gazprom Exports to EU Hit Record
  • 2 days Epic Fail as Solar Crashes and Wind Refuses to Blow
Petrochemicals: The Future For Big Oil

Petrochemicals: The Future For Big Oil

Saudi Aramco has inked a…

Iraq Aims To Reopen Kirkuk-Turkey Oil Pipeline Bypassing Kurdistan

Pipeline

Iraq’s Oil Minister Jabbar Al-Luiebi has ordered state-held oil and pipeline companies to begin restoring oil flows from Kirkuk to Turkish port Ceyhan via a pipeline that bypasses Kurdistan, increasing pressure on the breakaway region that voted for independence last month in a referendum strongly opposed and deemed illegal and invalid by the federal government.

Al-Luiebi has asked North Oil Company, the State Company for Oil Projects (SCOP), and Iraq’s state pipeline company to restore the pipeline to full operation, according to a statement on Iraq’s oil ministry website, as reported by Reuters.

Iraq had mostly stopped shipping oil via the Kirkuk Ceyhan pipeline after Islamic State militants overran Iraq’s northern provinces in 2014. U.S.-backed Iraqi forces have recaptured most of the oil infrastructure in the northern regions since then.

According to Iraq’s oil ministry, the country hopes to restore exports from the pipeline to the levels before 2014, when it exported between 250,000 bpd and 400,000 bpd.

The Kurdistan Regional Government (KRG) operates a pipeline that connects to Kirkuk-Ceyhan at Khabur on the border with Turkey.

Kurdistan produces around 600,000 bpd of crude oil, or about 15 percent of Iraq’s total output. Turkey is crucial to Kurdistan’s oil exports to the world, because most Kurdish oil is moved through a pipeline to Ceyhan.

On the day of the Kurdistan referendum, Turkish President Recep Tayyip Erdogan said that Turkey could cut off the crude oil flow from Kurdistan.

A few days later Turkey said that it supported Iraq’s decision that the oil trade should be done only by the central government, reaffirming it would deal only with Baghdad.

Related: Oil Giants At Odds As Saudi, Russian Ties Improve

Last week, Iraq, Iran, and Turkey took a unified stance against Kurdistan’s oil sector, increasing further pressure on the region after the referendum.  

Iraq’s Ministerial Council for National Security discussed on Monday “the official request of the government to Iran and Turkey to deal with the federal government exclusively with regard to the border ports and the closure of all ports with these two countries until the receipt of the administration by the federal government, and to stop all commercial transactions, especially on the export and sale of oil with the Kurdistan region and this be dealt with exclusively by the Iraqi Federal Government,” the media office of Iraqi Prime Minister Haider Al-Abadi said in a statement.

By Tsvetana Paraskova for Oilprice.com

More Top Reads From Oilprice.com:



Join the discussion | Back to homepage

Leave a comment
  • Naomi on October 11 2017 said:
    Kirkuk is part of Kurdistan. The Iraqi Army is unable to defend the pipeline against Peshmerga and US Air Force.

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News