Iraq has announced the resumption of limited oil exports totaling 250,000 barrels per day through the Turkish port of Ceyhan. This decision comes after a decline in the country’s oil production caused by disruptions in the Strait of Hormuz. Iraq heavily relies on crude oil sales, which account for 90% of its budget revenues. Prior to the outbreak of conflict, Iraq predominantly exported around 3.5 million barrels per day from the southern Basra fields via the Strait of Hormuz.
The state-owned North Oil Company has initiated operations at the Sarlo pumping station to resume the pumping and exporting of Kirkuk oil to Ceyhan at an initial capacity of 250,000 barrels per day. This move follows a challenging period for the oil sector in Iraq, leading to disruptions in the northern Kirkuk province. The agreement with the autonomous Kurdistan Region, which hosts the pipeline to Ceyhan, facilitated the resumption of oil exports from this region.
Iraq has been actively seeking solutions to export its oil, including ongoing negotiations with Iraqi Kurdistan to utilize the region’s pipeline. Kurdish authorities had outlined specific requirements before allowing oil transit through their territory. The Kurdistan natural resources ministry confirmed the operation of the Sarlo oil station for exports through the Kurdistan region pipeline to Ceyhan.
The closure of the Strait of Hormuz by Iran has impacted global oil and liquefied natural gas shipments, as the waterway typically handles a significant portion of these exports. Iraq’s Oil Minister, Hayan Abdel Ghani, disclosed ongoing discussions with Iran to secure passage for some of Iraq’s oil tankers through the strait.