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Kurdistan Region of Iraq and Turkey sign oil transportation deal

Industry

The Kurdistan Region of Iraq has signed an agreement with Turkey to export its crude oil directly to international markets via Turkey once the construction of a connecting pipeline has been completed

The Kurdistan Regional Government (KRG) has said it is on track to finish the pipeline linking Genel Energy’s Taq Taq oilfield with an existing Iraq-Turkey crude pipeline in Q3 2013, industry sources told Reuters.

Turkey has approved the plan, under which oil from Taq Taq will enter the Kirkuk-Ceyhan pipeline at Fishkhabur pumping station near the Turkish border.

The oil will then flow directly to Turkey’s southern port of Ceyhan for shipping to international markets, the sources said.

An Ankara-based industry source said, “The new pipeline will be linked to the Kirkuk-Ceyhan line. Naturally, once the Kurdistan Region of Iraq can export via pipeline, the volumes will rise.”

Ashti Hawrami, KRG energy minister, said, “The new pipeline was originally designed as a gas pipeline but now it is converted to carry oil.”

Sources said the pipeline has been laid up to Dohuk and is currently 80 per cent complete. It will be able to carry up to 300,000 bpd.

The Kurdistan Region of Iraq's crude used to be moved to world markets through a Baghdad-controlled pipeline to Turkey.

The move will significantly increase Kurdistan Region of Iraq’s oil exports, but could upset the Iraqi federal government, which sees independent exports from the northern autonomous region as illegal.

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