BEIRUT

Middle East

Kurdistan oil pipeline output to nearly double

A view of the Kawergosk Refinery, some 20 kilometres east of Arbil, the capital of the autonomous Kurdish region of northern Iraq, on July 14, 2014.

DUHOK/ANKARA: The capacity of Iraqi Kurdistan’s independent oil pipeline will almost double to at least 200,000 barrels per day by the end of this month, helping the semi-autonomous region increase exports and revenue, industry sources and officials said.

Oil revenues are a lifeline for the Kurdish Regional Government in northern Iraq, whose peshmerga forces are being supported by U.S. air strikes in their battle against the ISlamic State in Iraq and Greater Syria, (ISIS).

“Work to increase the capacity will probably be completed by the end of this month. Once it is completed, pumping can increase to up to 220,000 barrels per day,” one Turkish official told Reuters.

Industry sources also said the capacity of the pipeline to Turkey, which began operating at the start of this year, was set to rise to around 200,000-220,000 bpd from 100,000-120,000 bpd before the flow stopped for upgrade work.

One of the sources said capacity could climb to 250,000 bpd in two to three months’ time.

“The crude flow is set to restart when the upgrade work is finished, but the 200,000 bpd to 220,0000 bpd of crude flow will be dependent on the rising oil production in northern Iraq,” one official said.

A joint venture of Anglo-Turkish company Genel Energy and Sinopec’s Addax Petroleum is working to ramp up production in the Taq Taq oilfield, Iraqi Kurdistan’s largest, to 140,000 bpd by the end of this month.

After months of talks with Iraq’s central government failed to achieve anything, the KRG in May started to export crude through its own independent pipeline to the Turkish Mediterranean export terminal of Ceyhan.

The move has infuriated Baghdad, which claims the sole authority to manage Iraqi oil.

 
A version of this article appeared in the print edition of The Daily Star on August 20, 2014, on page 8.

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