Iraq: We are in contact with Iran to allow oil tankers to pass through the Strait of Hormuz

SadaNews - The Iraqi News Agency reported today, Tuesday, that the Minister of Oil stated that Baghdad is in contact with Iran to allow some oil tankers to pass through the Strait of Hormuz, as part of its efforts to alleviate the impact of the disruption of crude exports following recent attacks on oil tankers in Iraqi territorial waters.

Iraqi Oil Minister Hayyan Abdul Ghani stated in a video statement published on Monday that Iraq is also seeking to resume operation of a halted pipeline that allows oil to be pumped directly to the Turkish port of Ceyhan without passing through the Kurdistan region.

The minister added that Iraq will complete testing a section of the 100-kilometer pipeline within a week, in preparation for exporting oil directly from Kirkuk.

Reopening the Kirkuk-Ceyhan pipeline, which has been closed for more than 10 years, would provide an alternative route at a time when navigation through the strategic Strait of Hormuz is facing severe disruption due to the ongoing conflict in the Middle East.

Exports through the 960-kilometer pipeline ceased in 2014 and previously transported about 0.5% of global supplies after repeated attacks from ISIS elements, according to Reuters.

The Ministry of Oil states that initial exports through this pipeline could reach about 250,000 barrels per day, increasing to around 450,000 barrels per day if crude oil from Kurdistan's fields is added.

Baghdad has sought to use the Kurdistan pipeline as a temporary route for crude pumping, stating that the Kurdistan Regional Government imposes arbitrary conditions on its use, warning that it might resort to legal actions if exports are blocked.

The authorities in the Kurdistan region rejected these accusations, stating that they do not obstruct exports and that Baghdad has failed to address the security and economic challenges facing the oil sector in the region.

Iraq's Oil Production

The Minister of Oil told the Iraqi News Agency that "Iraq's crude oil production is around 4.4 million barrels per day according to the quota set by OPEC," adding that in "light of the military operations that occurred in the Arabian Gulf and the cessation of oil exports and the closure of the Strait of Hormuz, we were unable to export the necessary quantity of crude oil."

He continued, "Iraq previously exported about 3.4 million barrels per day through the southern export ports, namely the Basra oil port, but in light of military operations and the closure of the Strait, exports stopped two or three days after the war began in the region," indicating that "the Ministry of Oil has put a plan to reduce production from oil fields."

The minister pointed out that "the current production ranges from 1.5 to 1.6 million barrels per day to meet the requirements of refinery operations."