Oil pipeline capacity of Iraqi region of Kurdistan will almost double to at least 200,000 barrels per day by the end of this month, helping the region increase exports and revenue, industry sources and officials said.
"Work to increase the capacity will probably be completed by the end of this month. Once it is completed, pumping can increase to up to 220,000 barrels per day (bpd)," one Turkish official told Reuters.
Industry sources also said the capacity of the pipeline to Turkey, which began operating at the start of this year, was set to rise to around 200,000-220,000 bpd from 100,000-120,000 bpd before the flow stopped for upgrade work.
One of the sources said capacity could climb to 250,000 bpd in two to three months' time.
"The crude flow is set to restart when the upgrade work is finished, but the 200,000 bpd to 220,0000 bpd of crude flow will be dependent on the rising oil production in northern Iraq," one official said.
A joint venture of Anglo-Turkish company Genel Energy and Sinopec's Addax Petroleum is working to ramp up production in the Taq Taq oilfield, Iraqi Kurdistan region’s largest, to 140,000 bpd by the end of this month.
So far, 7.8 million barrels of Kurdish oil have flowed through the pipeline, of which 6.5 million have been loaded onto tankers for export.
The Kurds have managed to load seven export cargoes from Ceyhan, according to Turkish Energy Minister Taner Yildiz. Kurdistan region of Iraq delivered its third major cargo of crude oil out of Ceyhan and a fourth was sailing to Croatia on Friday.
Around $350 million in oil sales have been completed or are under way from shipments sent via the KRG pipeline, a Reuters analysis of satellite tracking data shows.
The KRG has said it plans to increase oil sales to around 1 million bpd by the end of 2015, which could give it enough economic clout.
"We provide a lifeline to this region; we boost the economy. Our machines have not stopped; all our staff both expats and locals are at work. Our target is to improve production," Onder Tekeli, general manager of Taq Taq Operating Company (TTOPCO), told Reuters during a short ride inside the facility.
Reuters
20 August
