Iraq to double Kirkuk crude exports

15 January 2015

Northern Iraq oil sales boosted following deal between Baghdad and Erbil governments

Iraq is planning to double crude exports from its northern Kirkuk oil fields in the coming weeks, after agreeing a deal with the Kurdistan Regional Government (KRG) to use its pipeline into Turkey.

The KRG took control of parts of the Kirkuk fields in July as militants from the jihadist group Islamic State in Iraq and Syria (Isis) spread through northern Iraq in July 2014.

Bloomberg News quoted Fouad Hussein, a member of the Kirkuk provincial council’s oil and gas committee, as saying Kirkuk shipments would rise to 300,000 barrels a day (b/d).

He added that the authorities were also upgrading the pipeline network connecting the fields.

Erbil and Baghdad reached an agreement in November to start exporting under the framework of the central Iraqi government in return for payments owned by Baghdad.

The deal came after the KRG began exporting crude independently amid a dispute over budget payments from the central government.

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