Baghdad in bid to raise oil exports from KRG

KIRKUK – Anadolu Agency

REUTERS Photo

The central government in Iraq has begun constructing a new oil pipeline from Kirkuk to Arbil to increase oil exports from region, an official from the Kurdistan Regional Government (KRG) said on Jan. 11.

“The existing pipelines are old and can only deliver 175,000 barrels of oil daily. Thus, the construction of a new pipeline between Kirkuk and the KRG began and is expected to be complete in June,” Fuad Hussein, Kirkuk city council’s secretary for oil and gas, told Anadolu Agency.

He said the new pipeline will be able to deliver 300,000 barrels of oil per day when completed.
The current amount of oil exports from Kirkuk to Arbil is 150,000 barrels, both due to low production and technical hurdles.

The KRG and central government in Iraq have previously had disputes over energy resources. On Nov. 14, 2014 Iraqi Oil Minister Adil Abdul-Mahdi announced the two sides had reached an agreement.

In accordance with the agreement, Kirkuk is expected to export 300,000 barrels of oil daily. To be able to achieve this amount, oil production needs to be increased. Oil production in the region has been low since March 2014 due to sabotage by extremist group Islamic State of Iraq and the Levant (ISIL).