Regional oil companies: We are patiently waiting for the return of Ceyhan pipeline exports

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[size=52]Regional oil companies: We are patiently waiting for the return of Ceyhan pipeline exports[/size]

[size=45]Translated by / Hamed Ahmed[/size]
[size=45]International oil production companies operating in the Kurdistan region indicated that the closure of the Ceyhan oil export pipeline has now entered its tenth month, which is a longer period than they expected, which forced them to reduce production rates and resort to local sales and equip Kurdistan oil refineries with different types of oil types, looking forward to the resumption of discussions. Three of them, including the regional government and the federal government, to resume exports again.[/size]
[size=45]The talk came from the directors of DNO, Genel Energy, and Gulf Keystone International Petroleum Company operating in the Kurdistan region while they were attending the annual Petroleum Energy Conference held this week in Norway, as none of them wanted to predict the time or date when the Ceyhan Pipeline might return to pumping oil again. This is the pipeline that previously pumped approximately 400,000 barrels per day of oil from the Kurdistan region’s oil fields and another 70,000 barrels of crude oil from Kirkuk.[/size]
[size=45]John Harris, CEO of Gulf Keystone, said that it will soon be ten months since the export pipeline stopped working, noting that nine months and two weeks have now passed, “which is a longer period of closure than we expected.”[/size]
[size=45]Harris added, saying, “Local sales are going up and down, and some petroleum products from the Kar refinery have been prepared for the local market. This has led to production competition between companies in the region, but there is a specific capacity and capacity for storage in the refineries around certain types of crude oil, which makes this have restrictions.” Logistics of production rates.”[/size]
[size=45]Chris Spence, from DNO, expressed his astonishment at the quantities of oil that companies are able to sell in the local market, noting that although the price is cheaper than the global market price, “it is still higher than the cost of our oil production, which constitutes a small profit margin.” I would like us to sell according to the margin of the Brent crude price, but still achieve profits.”[/size]
[size=45]Shah Maran, CEO of Gart Sudan, said the current situation is good for the company. He said that the company's license in the Sarsang field produces approximately 40 thousand barrels per day with the product going to the Lanza refinery, noting that oil production in the Atrush field has risen to 10 thousand barrels per day as the crude oil produced is sent to the Kar refinery.[/size]
[size=45]Directors of oil companies operating in the Kurdistan region expressed their optimism and aspirations for tripartite discussions taking place between the companies, the regional government, and the federal government in Baghdad.[/size]
[size=45]“We are continuing to see progress in the discussions, but it is slow,” said Luke Clements, CEO of Genel Energy. “It is just baby steps, but good progress.” Clements expressed his confidence that Baghdad wants Kurdistan to resume its oil exports.[/size]
[size=45]For his part, Harris, Director of Gulf Keystone Company, said, “Baghdad has a desire to resume exports in order to earn oil revenues as well as obtain compensation from Turkey.”[/size]
[size=45]Due to the closure of the export pipeline, companies reduced their investment expenses in oil fields, which is in line with reducing production rates. Director of DNO, Chris Spence, said that the company has moved to reduce spending. Pointing out that the company's business reduction rate has fallen to 65%, and that the cost of production is less than $10 per barrel.[/size]
[size=45]Harris, director of Gulf Keystone, said, “We are now adopting a lower rate of production costs of about $3.2 per barrel, and this is a good competitive thing in the fields of the Kurdistan region,” noting that in the first quarter of 2023, the company was spending $18 million per month in investments. In the second quarter of 2023, spending decreased to $6 million per month.[/size]
[size=45]Spence, director of DNO, which holds the license to develop the Bashiqa field, said, “We have been working in the region for a long time, and despite these problems related to closing the pipeline, we are confident that they will be resolved.”[/size]
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