Iraq is in the process of repairing the Kirkuk-Ceyhan pipeline, aiming to resume sending 350,000 barrels per day (bpd) to Turkey by the end of the month. This move, announced by an Iraqi deputy oil minister, could potentially create tension with foreign oil companies and the Kurdistan Regional Government (KRG). The reopening of this pipeline, which has been closed for ten years, offers an alternative route to the KRG’s pipeline, which has been inactive for a year due to stalled negotiations between Baghdad and the KRG on resuming exports.
Baghdad views the production-sharing agreements between the Kurds and foreign companies using the KRG’s pipeline as illegal. Oil companies will now be required to engage with the federal government in Baghdad to sell their oil through the revived Kirkuk-Ceyhan pipeline, a development that may cause friction with the Kurds who heavily rely on oil revenue. The repairs on the pipeline are progressing, with a crucial pumping station and storage facilities already completed, signaling readiness to restart operations by the end of the month.