Iraq and Turkey have signed an agreement to extend the operation of an oil pipeline that transports a major portion of Iraq’s crude exports.
The 970km Kirkuk-Ceyhan pipeline carries oil from Iraq’s northern oilfields near Kirkuk to the Turkish Mediterranean port of Ceyhan, reports Reuters.
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The agreement was extended for 15 years, which is significant in the context of increasing the development of Iraqi oilfields, leading to a rise in output and the need for more export outlets.
The two countries agreed to raise transit fees and the accord also included an official guarantee by the Turkish Government to dismiss orders by Turkish courts to seize Iraqi oil.
Under the agreement the pipeline’s capacity will be upgraded by one million barrels per day.
The double-pipe link has a total capacity of 1.6 million barrels per day, but normally carries about 500,000bpd.
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By GlobalData
