XOM - Iraq To Resume Oil Exports To Turkey Via Pipeline Shuttered A Decade Ago Amid Kurdish Negotiation Deadlock | Benzinga
In a significant development in the energy sector, Iraq is set to reactivate a previously dormant pipeline to Turkey, which could substantially impact regional oil exports and negotiations.
What Happened: Iraq is reviving a pipeline to Turkey, potentially exporting 350,000 barrels per day by month’s end, Reuters reported on Sunday. This move comes amid stalled negotiations with the Kurdistan Regional Government (KRG).
The Kirkuk-Ceyhan pipeline, inactive for a decade, offers an alternative to the KRG’s pipeline, which has been closed for a year. Baghdad views the KRG’s oil deals with foreign companies as illegal and demands that companies negotiate with the federal government for oil sales through the revived pipeline.
Islamic State attacks halted the pipeline’s operations in 2014. It was responsible for about 0.5% of the world’s oil supply.
“Major crude pumping station with storage facilities has been completed,” said Basim Mohammed, Iraqi deputy oil minister for upstream affairs, indicating the pipeline’s readiness to restart flows soon.
After an arbitration court ruling last year, the KRG’s pipeline was shut down, citing treaty violations. Discussions to ...