At a Glance:

• Combined pipeline exports from Kurdistan and Kirkuk dropped to 114,000 barrels per day.
• KRG daily crude production has fallen below 115,000 barrels due to security impacts.
• Iraqi government plans to truck Basra crude north to Kirkuk facilities.
• Joint export target set between 500,000 and 750,000 barrels per day via Ceyhan Port.

Combined oil exports from the Kurdistan Region and Kirkuk through the northern pipeline network have dropped to 114,000 barrels per day, according to data obtained by Channel8. The reduction follows security challenges and regional war impacts that have kept several oil fields offline.

In response, federal authorities in Baghdad plan to request the Kurdistan Regional Government to increase local production while preparing to transport southern crude from Basra via tanker trucks to elevate export volumes through Turkey's port of Ceyhan.

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Key Statements and Focus Area

• Export Reduction: Channel8 obtained information that total pipeline shipments have fallen sharply, stating that "oil exports from the Kurdistan Region and Kirkuk through the Kurdistan Region's pipeline have decreased to 114,000 barrels per day."
• Refinery Allocation: Addressing the drop in Kirkuk exports from 60,000 to 50,000 barrels per day, officials noted that "most produced oil is currently being directed to refineries."
• Southern Crude Transit: An official confirmed the upcoming logistics plan, stating that "in the coming days, Basra oil is scheduled to arrive in Kirkuk by tanker and then be exported via Ceyhan Port."
• Future Export Targets: Authorities outlined the broader operational objective, noting that the KRG was notified to scale up production aiming for "exports through the Kurdistan pipeline to reach between 500,000 and 750,000 barrels per day."

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Daily Export and Production Slump

Daily pipeline exports from the Kurdistan Region recorded 62,000 barrels on Friday, August 7, and 64,000 barrels on Saturday, August 8. Concurrently, Kirkuk's pipeline contribution declined from 60,000 to 50,000 barrels per day as local crude was redirected to meet domestic refining demands. Total daily extraction across the Kurdistan Region has dropped below 115,000 barrels per day, with multiple production areas remaining inactive due to regional security conditions and ongoing impacts from the conflict involving Iran.

Basra Rerouting and Pipeline Integration

To address supply shortages and maximize northern corridor output, Baghdad is establishing an overland transit scheme. Under the initiative, tankers will transport crude oil from Basra north to storage tanks in Kirkuk. Once delivered, the Basra crude will be injected into the Kurdistan Region's export pipeline alongside local production for shipment to Ceyhan Port in Turkey. By comparison, combined pipeline exports through this route averaged 175,000 barrels per day in July, comprising 115,000 barrels from the Kurdistan Region and 60,000 barrels from Kirkuk.

High-Volume Throughput Expansion

With the scheduled arrival of Basra crude, federal energy administrators have asked the Kurdistan Regional Government to ramp up extraction across active fields. The coordinated effort aims to boost overall pipeline throughput to between 500,000 and 750,000 barrels per day, leveraging both trucked southern crude and increased northern field output to fulfill national export goals.

FYI

The northern export pipeline to Ceyhan, Turkey, remains a critical alternative for Iraqi energy flows during periods when southern maritime routes face regional instability. Iraq and Turkey recently signed a one-year interim agreement to continue crude oil exports through the Ceyhan pipeline up to a maximum capacity of 750,000 barrels per day while a comprehensive long-term agreement is finalized. Combining trucked Basra crude with higher Kurdistan field extraction reflects Baghdad's strategy to maintain consistent hydrocarbon revenue and bypass southern maritime bottlenecks amidst volatile regional security conditions.

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