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Pipeline Network to cover all of Iraq

By John Lee.

Oil Minister Jabar Ali al-Luaibi [Allibi, Luiebi] has reportedly said that Iraq plans to build a network of pipelines to transport oil products throughout the country, as an alternative to expensive and hazardous road transport.

Reuters quotes him as saying that the network will be part of a strategic plan that includes pipelines to deliver both crude oil and oil products to neighbouring countries.

Earlier this month Iraq announced plans to build a crude-oil pipeline to Iran.

(Source: Reuters)

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Japanese Company considers Gas Pipeline and Petchem Plant

By John Lee.

Iraq has reportedly contracted Japan’s Toyo Engineering to help build a gas pipeline to Kuwait and a petrochemical plant as Baghdad.

According to a report from Reuters, the move will help Iraq to reduce flaring and finish paying the reparations owed to Kuwait for the invasion in 1990.

The project would allow Kuwait to reduce its dependency on Qatar as a supplier of gas; deliveries could begin as early as 2019.

It would also deal a blow to Shell, which aimed to be the dominant gas player in Iraq before relations with Baghdad soured following it’s planned exit from the Majnoon oil project.

Toyo told Reuters that talks are ongoing and a final decision has not yet been made.

(Source: Reuters)

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New Pipeline to Export Kirkuk Oil via Ceyhan

By John Lee.

Iraq’s Oil Ministry has announced that it will build a new pipeline from Baiji to Fishkabur, enabling Kirkuk oil to be exported again from Turkey’s Ceyhan port (pictured).

Kirkuk’s oil was previously being exported via the Kurdistan Regional Government’s (KRG) pipeline to Ceyhan, but this has been on hold since Baghdad took control of the area.

Plans to rehabilitate Baghdad’s existing oil pipeline to Turkey, which was badly damaged by militants in 2014, have been scrapped.

(Sourced: Ministry of Oil, Rudaw)

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Baghdad “Looks to Take Control of KRG Oil”

By Adnan Abu Zeed for Al Monitor. Any opinions expressed here are those of the author and do not necessarily reflect the views of Iraq Business News. 

The Iraqi State Organization for Marketing Oil (SOMO) announced Nov. 2 that it is arranging with Turkey to allow SOMO to sell Iraqi crude from the disputed territories through the pipeline from Kirkuk to the Ceyhan Turkish port.

The Kurdistan Regional Government (KRG) used to export about 500,000 barrels per day independently through Ceyhan before the Baghdad operation to retake the disputed areas in mid-October.

It was not long after the Iraqi army took over the oil fields in Kirkuk in a military operation to “impose security,” as described by Prime Minister Haider al-Abadi, that the federal government resumed oil pumping operations.

The operations started about a week after the clashes between governmental forces and Kurdish peshmerga forces. Meanwhile, the Ministry of Oil rushed to increase oil production, and on Oct. 23, the ministry requested the help of the British petroleum company BP in increasing production in Kirkuk oil fields to more than 700,000 barrels per day. The ministry also announced the formation of a ministerial committee to advance the oil industry in the province of Kirkuk.

Kirkuk has more than 35 billion barrels in oil reserves and a production capacity ranging from 750,000 to 1 million barrels per day. The federal government seems determined to control the oil sources, especially in Kirkuk and the disputed areas. In light of this, on Oct. 19, the Iraqi minister of oil warned all countries and international petroleum companies against signing contracts with any Iraqi party without first consulting the federal government.

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Rosneft to Build New Kurdistan Oil Pipeline

Russia’s Rosneft and Kurdistan Regional Government (KRG) have announced the start of joint implementation of an infrastructure project for the operation of the oil pipeline in the Kurdish Autonomous Region.

According to a statement from Rosneft, its share in the project “may amount to 60%“.

“The other project participant with 40% share will be KAR Group, who is the current pipeline operator,” it added.

Rosneft Chief Executive Officer Igor Sechin (pictured) said:

“The entry into the infrastructure project will contribute to achievement of Rosneft’s strategic objectives and will enable Rosneft to enhance the efficiency of oil transportation to the end customers including supplies to the Company’s refineries in Germany”.

(Source: Rosneft)