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Activating the Turkish Kirkuk-Ceyhan line soon
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The Iraqi Deputy Minister of Oil for Extraction Affairs, Bassem Muhammad, said that his country is working to repair a pipeline that would allow 350,000 barrels per day of oil to be pumped to Turkey by the end of this month, in a move that is likely to arouse the ire of foreign oil companies and the Kurdistan Regional Government, which is striving to... To resume oil exports.
This comes as negotiations continue to falter between Baghdad and Erbil regarding the resumption of the export of Kurdistan region oil to Turkey, which stopped in March 2023 and was exporting approximately 400 thousand barrels per day.
According to the oil expert and former advisor to the Prime Minister on Energy Affairs, Hamza Al-Jawahiri, the line that Iraq intends to operate extends from the Kirkuk fields in the “Kiwai” region all the way to Nineveh Governorate, and then the Fish Khabour region on the Iraqi-Turkish border, with a length of 345 kilometers, which is known in Iraq as Part of the strategic line, which Iraq began establishing in 1977 and can transport oil at about 600 thousand barrels per day.
Al-Jawahiri stated that the line was vandalized with 3 out of 5 oil pumping stations out of service, as it was rehabilitated during the past months, indicating that the line is now ready for export, as trial pumping operations began two weeks ago.
As for the Kurdistan Region pipeline, it starts from the “Khurmala” area in Kirkuk and passes through the territory of the region to the Fish Khabour area, where the length of the line does not exceed 300 kilometers, indicating that the line’s export capacity is close to the line belonging to the federal government.
Al-Jawahiri added that the two lines use the Turkish line extending from the Fish Khabour area towards the Turkish port of Ceyhan, where the Kurdish line connects with the Turkish line within the Turkish border, and its length is estimated at about 660 kilometers, indicating that operating the Iraqi line is a complete cancellation of the Kurdish line.
Baghdad and Erbil can use and exploit the Kurdish line if the two sides agree, provided that the export of Kurdish oil is subject to the control of the federal government, which will enhance Iraq’s ability to export its oil to Turkey, according to Al-Jawahiri.
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Regarding the possibility of resuming the Iraqi pipeline soon, a member of the Energy and Gas Committee in the Iraqi Parliament, Muhammad Al-Farman, revealed to Al Jazeera Net that the strategic pipeline will resume pumping oil at the end of this month, as 3 Iraqi oil companies affiliated with the Ministry of Oil worked to rehabilitate it again.
For his part, the economic advisor to the Iraqi Prime Minister, Muhammad Mazhar Salih, says that the Iraqi oil export line to Turkey, known internationally as the Iraqi-Turkish Pipeline (ITP), has recently been repaired, as the greatest damage to the line was within the borders of Nineveh Governorate, indicating The experimental pumping of the line will begin soon, equivalent to 150 thousand barrels per day.
The future of Kurdish script
Regarding the future of the region’s Kurdish oil export line, Saleh said that activating the Iraqi line means, in principle, stopping the Kurdish line. However, activating the Iraqi line will open a wider door for negotiation between Baghdad and Erbil, especially since exporting the region’s oil is ultimately in the government’s interest. The Federal Court and its budget, after the Federal Court ruled that the Iraqi Oil Marketing Company “SOMO” would control oil export operations in the region, indicating that the negotiations will revolve around the work of the companies and the nature of the contracts, according to him.
On the other hand, a member of the Energy and Oil Committee in Parliament, Muhammad Al-Farman, explained that this issue is still unsettled, and that it may depend on the visit of Prime Minister Muhammad Shiaa Al-Sudani to Washington in the middle of this month, as there is pressure in this aspect, and that the government delegation to Washington will include Oil Minister Hayyan Abdul-Ghani also said.
The beginning of the crisis between Baghdad and Erbil began in 2014, when Turkey allowed the Kurdistan region to export oil independently of the Federal Ministry of Oil, as the Kurdish pipeline was linked to the Iraqi-Turkish oil pipeline, before the ruling of the International Chamber of Commerce in Paris ruled in favor of Iraq and condemned Turkey for... Using the line within Turkish territory without the approval of the Iraqi government.
Returning to Hamza Al-Jawahiri and the future of oil companies operating in the Kurdistan region, he stressed that the federal government did not request the exit of these companies from the country, but rather asked them to amend the contracts in accordance with Iraq’s laws and constitution. Otherwise, these companies cannot return to work again. According to him,
Meanwhile, Abdul Rahman Al-Mashhadani, professor of economics at the Iraqi University in Baghdad, says that the rehabilitated damage to the Iraqi strategic line does not exceed 50 kilometers, and therefore, Iraq will initially export approximately 350 thousand barrels per day, indicating that Baghdad has become obligated to export oil via This line is in accordance with the Iraqi-Turkish agreement. Otherwise, Iraq will bear the costs and fees for not using the Turkish line according to the bilateral agreement.
He stated that the problem of the region's oil is represented by oil companies, as these companies require traffic fees estimated at about $26 per barrel, while the cost of transporting it across the strategic line does not exceed $7 per barrel, and therefore the Iraqi line will be more profitable than the competing Kurdish line, which is what made The position of oil companies in the region is almost "hysterical," according to his description.
Regarding the Kurdish position, Reuters quoted the energy advisor in the Kurdistan region, Bahjat Ahmed, stating that Iraqi Oil Ministry officials informed the Kurdish negotiating team that they consider the agreement between the Kurdistan Regional Government and the Russian company Rosneft illegal and a violation of applicable Iraqi laws.
Baghdad had rejected a request from the Kurdistan Regional Government for Baghdad to pay oil transit fees from the region to Turkey, estimated at $6 per barrel, to the Russian oil company Rosneft, which partially owns the Kurdish pipeline.
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Added 04/12/2024 - 5:31 AM
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Iraqi oil pipeline
Iraqi oil pipeline
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The Iraqi Deputy Minister of Oil for Extraction Affairs, Bassem Muhammad, said that his country is working to repair a pipeline that would allow 350,000 barrels per day of oil to be pumped to Turkey by the end of this month, in a move that is likely to arouse the ire of foreign oil companies and the Kurdistan Regional Government, which is striving to... To resume oil exports.
This comes as negotiations continue to falter between Baghdad and Erbil regarding the resumption of the export of Kurdistan region oil to Turkey, which stopped in March 2023 and was exporting approximately 400 thousand barrels per day.
According to the oil expert and former advisor to the Prime Minister on Energy Affairs, Hamza Al-Jawahiri, the line that Iraq intends to operate extends from the Kirkuk fields in the “Kiwai” region all the way to Nineveh Governorate, and then the Fish Khabour region on the Iraqi-Turkish border, with a length of 345 kilometers, which is known in Iraq as Part of the strategic line, which Iraq began establishing in 1977 and can transport oil at about 600 thousand barrels per day.
Al-Jawahiri stated that the line was vandalized with 3 out of 5 oil pumping stations out of service, as it was rehabilitated during the past months, indicating that the line is now ready for export, as trial pumping operations began two weeks ago.
As for the Kurdistan Region pipeline, it starts from the “Khurmala” area in Kirkuk and passes through the territory of the region to the Fish Khabour area, where the length of the line does not exceed 300 kilometers, indicating that the line’s export capacity is close to the line belonging to the federal government.
Al-Jawahiri added that the two lines use the Turkish line extending from the Fish Khabour area towards the Turkish port of Ceyhan, where the Kurdish line connects with the Turkish line within the Turkish border, and its length is estimated at about 660 kilometers, indicating that operating the Iraqi line is a complete cancellation of the Kurdish line.
Baghdad and Erbil can use and exploit the Kurdish line if the two sides agree, provided that the export of Kurdish oil is subject to the control of the federal government, which will enhance Iraq’s ability to export its oil to Turkey, according to Al-Jawahiri.
Login to the service
Regarding the possibility of resuming the Iraqi pipeline soon, a member of the Energy and Gas Committee in the Iraqi Parliament, Muhammad Al-Farman, revealed to Al Jazeera Net that the strategic pipeline will resume pumping oil at the end of this month, as 3 Iraqi oil companies affiliated with the Ministry of Oil worked to rehabilitate it again.
For his part, the economic advisor to the Iraqi Prime Minister, Muhammad Mazhar Salih, says that the Iraqi oil export line to Turkey, known internationally as the Iraqi-Turkish Pipeline (ITP), has recently been repaired, as the greatest damage to the line was within the borders of Nineveh Governorate, indicating The experimental pumping of the line will begin soon, equivalent to 150 thousand barrels per day.
The future of Kurdish script
Regarding the future of the region’s Kurdish oil export line, Saleh said that activating the Iraqi line means, in principle, stopping the Kurdish line. However, activating the Iraqi line will open a wider door for negotiation between Baghdad and Erbil, especially since exporting the region’s oil is ultimately in the government’s interest. The Federal Court and its budget, after the Federal Court ruled that the Iraqi Oil Marketing Company “SOMO” would control oil export operations in the region, indicating that the negotiations will revolve around the work of the companies and the nature of the contracts, according to him.
On the other hand, a member of the Energy and Oil Committee in Parliament, Muhammad Al-Farman, explained that this issue is still unsettled, and that it may depend on the visit of Prime Minister Muhammad Shiaa Al-Sudani to Washington in the middle of this month, as there is pressure in this aspect, and that the government delegation to Washington will include Oil Minister Hayyan Abdul-Ghani also said.
The beginning of the crisis between Baghdad and Erbil began in 2014, when Turkey allowed the Kurdistan region to export oil independently of the Federal Ministry of Oil, as the Kurdish pipeline was linked to the Iraqi-Turkish oil pipeline, before the ruling of the International Chamber of Commerce in Paris ruled in favor of Iraq and condemned Turkey for... Using the line within Turkish territory without the approval of the Iraqi government.
Returning to Hamza Al-Jawahiri and the future of oil companies operating in the Kurdistan region, he stressed that the federal government did not request the exit of these companies from the country, but rather asked them to amend the contracts in accordance with Iraq’s laws and constitution. Otherwise, these companies cannot return to work again. According to him,
Meanwhile, Abdul Rahman Al-Mashhadani, professor of economics at the Iraqi University in Baghdad, says that the rehabilitated damage to the Iraqi strategic line does not exceed 50 kilometers, and therefore, Iraq will initially export approximately 350 thousand barrels per day, indicating that Baghdad has become obligated to export oil via This line is in accordance with the Iraqi-Turkish agreement. Otherwise, Iraq will bear the costs and fees for not using the Turkish line according to the bilateral agreement.
He stated that the problem of the region's oil is represented by oil companies, as these companies require traffic fees estimated at about $26 per barrel, while the cost of transporting it across the strategic line does not exceed $7 per barrel, and therefore the Iraqi line will be more profitable than the competing Kurdish line, which is what made The position of oil companies in the region is almost "hysterical," according to his description.
Regarding the Kurdish position, Reuters quoted the energy advisor in the Kurdistan region, Bahjat Ahmed, stating that Iraqi Oil Ministry officials informed the Kurdish negotiating team that they consider the agreement between the Kurdistan Regional Government and the Russian company Rosneft illegal and a violation of applicable Iraqi laws.
Baghdad had rejected a request from the Kurdistan Regional Government for Baghdad to pay oil transit fees from the region to Turkey, estimated at $6 per barrel, to the Russian oil company Rosneft, which partially owns the Kurdish pipeline.
Views 77
Added 04/12/2024 - 5:31 AM
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