Sponsored by: Investment Center

Something new in your business?  Click here to submit your business press release

Chamber Corner | Main Street News | Job Hunt | Classifieds | Calendar | Illinois Lottery 

Exclusive: Capacity to double on Iraqi Kurdistan oil pipeline - sources

Send a link to a friend  Share

[August 19, 2014]  By Humeyra Pamuk and Orhan Coskun

DUHOK Iraq/ANKARA (Reuters) - 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, increasing the semi-autonomous region's exports and revenue, industry sources and officials said.

Oil revenues are a lifeline for the Kurdish Regional Government (KRG) in northern Iraq, whose peshmerga forces are being supported by U.S. air strikes in their battle against the radical Sunni militants of Islamic State.

"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 (bpd)," one Turkish official told Reuters.

Industry sources also said the capacity of the pipeline, 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.

The KRG began independently exporting its crude via the Turkish Mediterranean export terminal of Ceyhan in May, a move that has infuriated Baghdad, which claims the sole authority to manage Iraqi oil.

Baghdad has tried to block KRG's oil sales and prevented some cargoes from discharging through legal action, but the Kurdish enclave has managed to load seven export cargoes from Ceyhan, according to Turkish Energy Minister Taner Yildiz.

So far, 7.8 million barrels of Kurdish oil have flowed through the independent pipeline, of which 6.5 million have been loaded onto tankers for export.

(Reporting by Humeyra Pamuk and Orhan Coskun; Editing by Nick Tattersall and Jane Baird)

[© 2014 Thomson Reuters. All rights reserved.]

Copyright 2014 Reuters. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

< Top Stories index

Back to top