Iraq has officially restarted limited oil exports of 250,000 barrels per day (bpd) through the Turkish port of Ceyhan. This move comes after a decline in the country’s oil production due to disruptions in the Strait of Hormuz.
As a founding member of the OPEC cartel, Iraq heavily relies on crude oil sales, which account for 90% of its budget revenues. Prior to the outbreak of war on February 28th, Iraq primarily exported its oil, approximately 3.5 million barrels per day, from the southern Basra fields through the Strait of Hormuz.
The state-owned North Oil Company has confirmed the operation of the Sarlo pumping station to resume pumping and exporting Kirkuk oil to the port of Ceyhan at an initial capacity of 250,000 barrels per day. This resumption of oil exports from the northern Kirkuk province follows a challenging period for the oil sector and has been facilitated in agreement with the autonomous Kurdistan Region, through which the pipeline to Ceyhan runs.
Iraq has been actively seeking solutions to export its oil, engaging in discussions with Iraqi Kurdistan to utilize its infrastructure for oil shipments. In exchange for allowing the oil flow through the region’s pipeline, Kurdish authorities had specific requirements.
The Kurdistan natural resources ministry announced the commencement of operations at the Sarlo oil station to facilitate exports via the Kurdistan region pipeline to Ceyhan. Meanwhile, Iran’s closure of the Strait of Hormuz, a vital route for global crude oil and liquefied natural gas shipments, has prompted Iraq to communicate with Iran to explore options for the passage of its oil tankers through the waterway.
