Iraq intends to rehabilitate the Kirkuk-Ceyhan line to export oil.. What about the region?
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Baghdad today - Baghdad
In a move that may “completely end” the Kurdistan region’s ambitions to return to exporting crude, the federal government in Baghdad is preparing to rehabilitate a pipeline, which has been suspended for about 10 years, to export oil through the Turkish port of Ceyhan, amid a group of problems with the regional authorities regarding many files, most notably, Oil revenues.
Last Monday, this file returned to the forefront again after statements made by a senior Iraqi oil official, during which he confirmed that Baghdad is working to rehabilitate the Kirkuk-Ceyhan pipeline, which could allow the pumping of 350,000 barrels per day of oil to Turkey by the end of this month.
Reuters quoted the Undersecretary of the Iraqi Ministry of Oil for Extraction Affairs, Bassem Muhammad, as saying, “Rehabilitation work is continuing, and we have rehabilitated and completed the oil pumping station. The pipeline will likely be ready for operation and re-pumping at the end of this month.”
He added that repairing the damaged parts inside Iraq and completing the establishment of a basic pumping station will be the first stage of operations to restore the pipeline to its full capacity.
Exports through this 960-kilometre-long line were halted in 2014 after repeated attacks by ISIS militants. In the past, about 0.5 percent of global supplies were pumped through it.
Three sources from the state-run North Oil Company said that experimental pumping of crude oil began early last week to examine the part that passes inside Iraqi territory and showed leakage in some parts.
The technical crews of the North Oil Company accelerated the repair operations of the damaged parts that extend from Kirkuk through Salah al-Din and Mosul to the border area with Turkey.
Two Iraqi oil officials and a government energy advisor said that the agreement between Baghdad and Ankara regarding the operations of the Iraq-Turkey oil pipeline was extended in 2010 for 15 years and will expire in mid-2025.
The government energy advisor said that resuming operations on the old pipeline would be discussed as part of talks to extend the line agreement.
what does that mean?
On March 25, 2023, the Kurdistan Regional Government's pipeline was stopped after an international arbitration court ruled that it violated the provisions of a 1973 treaty by facilitating oil exports from the Kurdish region without Baghdad's approval.
Negotiations to restart it faltered after Türkiye, the Kurdistan Regional Government, and the federal government presented conflicting demands.
Before that date, KRG exports flowed through its pipeline to Fish Khabur on the northern border of Iraq, where the oil entered Turkey and was pumped to the port of Ceyhan on the Mediterranean coast.
Baghdad considers production-sharing agreements between the Kurds and foreign companies using the KRG pipeline illegal.
Writer and political affairs researcher Kifah Sinjari says, “The issue of dealing with foreign companies and the oil pipeline in the Kurdistan region constitutes a complex, because those who try to replace the pipeline with another want to obstruct any progress in resolving the problems” existing between Baghdad and Erbil.
Sinjari adds, “There are about 400,000 barrels of oil produced daily in the region. What will they do with it?”
Sinjari, who previously worked as an advisor to the Kurdistan Regional Presidency, believes that “it is difficult at the present time to solve the problem as long as there is an absence of a legal reference, which is the oil and gas law, which would regulate the rights of the region and the rights of the provinces.”
Sinjari expressed his regret for "obstructing the legislation of this law, which gives an indication that there are forces that do not want to solve the problems with the region and were content to prevent it by the International Court in Paris," stressing that "this will not solve the problem."
The origin of the crisis
The oil problem between Kurdistan and Baghdad is not new, and goes back more than a decade, as governments in Kurdistan have always affirmed that they will not “abandon the rights of the Kurdistan people,” while Baghdad asserts its right to manage this file while ensuring a fair distribution of revenues.
The Iraqi Constitution indicates in Articles 111 and 112 that natural resources such as oil and gas belong to the Iraqi people, and no one has the right to manage them alone, provided that the federal government manages this matter, taking into account the equitable distribution of oil imports to all regions and territories.
The disputes between the region and the federal government may have begun in 2007 when the region issued the Oil and Gas Law, and the subsequent establishment of several companies to explore, produce, refine and market oil.
Years later, Kurdistan concluded dozens of contracts with foreign companies to discover and extract oil, without the approval of the federal government, which Baghdad considers its right under the constitution.
The major turning point was in 2014, when Turkey allowed the Kurdistan region to export oil “independently from the Ministry of Oil of the federal government,” as it linked a pipeline belonging to Kurdistan to the “Iraqi-Turkish oil pipeline,” to be exported through the Turkish port of Ceyhan, according to An analysis published by the Washington Institute in February of last year.
Recently, the regional authorities and the federal government reached an agreement stipulating that oil sales would be conducted through the Iraqi Oil Marketing Organization (SOMO) and that the revenues would be placed in a bank account managed by Erbil and supervised by Baghdad.
But the resumption of exports is still on hold pending an agreement with Türkiye.
Former minister and MP Wael Abdel Latif believes that "the problem will remain because there is no seriousness in approving the oil and gas law that gives justice to all parties."
Abdul Latif adds, "For this crisis to end once and for all, we must return to the constitution, instead of signing agreements, treaties, and settlements to resolve the crisis temporarily."
However, Abdul Latif rules out that an oil and gas law will be approved, whether during the current parliamentary session or the next, because it will include very strong controls on all governorates, including Kurdistan.
“The political forces are not serious and they all work according to the principle of generalizations and compromises, far from the constitution,” according to Abdel Latif.
Source: Al Hurra
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