Iraq revive oil pipelines with three Arab countries

Iraq revive oil pipelines with three Arab countries

Shafaq News / Iraq is seeking to revive oil pipeline connections with three Arab nations while harnessing the associated gas produced during oil production operations.

According to Farhad Alaa Aldeen, the foreign relations advisor to the Iraqi Prime Minister, speaking on the sidelines of the "Qatar Economic Forum," negotiations are underway to revive a pipeline route with Saudi Arabia that was established in the 1970s. Additionally, there are plans to activate an oil pipeline route through Syria, as well as the Basra-Aqaba pipeline, which is currently under study by advisors.

These plans come at a time when Iraq is facing a halt in the export of oil from the Kurdistan region of Iraq through the Turkish port of Ceyhan, resulting in a loss of approximately 450,000 barrels per day in the region's exports.

Regarding the resumption of oil re-exports through the pipeline connecting to the Turkish port of Ceyhan, Alaa Aldeen stated that the Turkish side has cited "technical issues" impeding its resumption, adding that "the ongoing Turkish rerun elections may be preoccupying Turkish officials at the moment."

Iraq halted the export of approximately 450,000 barrels per day of crude oil from the Kurdistan region and the Kirkuk fields via the pipeline to the Turkish port of Ceyhan in March, following Iraq's legal victory in an international arbitration case against Turkey for allowing Erbil to export oil without Baghdad's consent, as Baghdad deems the region's oil exports unauthorized.

The advisor to the Iraqi Prime Minister stated, "The Turkish side initially requested negotiations regarding the $1.5 billion fine imposed by the court, but they later informed us that the cessation of oil flow through the Ceyhan pipeline was due to technical problems."

In terms of gas, Alaa Aldeen stated that Iraq is seeking to fully exploit the associated gas produced during oil production operations, estimated to range between 1.6 and 1.8 billion cubic feet of gas.

Meanwhile, Iraqi Oil Minister Hayaan Abdulghani mentioned during the Qatar Economic Forum on Tuesday that his country has a partnership with Shell to utilize associated gas from oil production in Basra. He added that the first phase, involving the extraction of approximately 400 million cubic feet of associated gas, is set to commence by the end of this month, while the second phase is scheduled for completion by year-end.

Additionally, there is a partnership with French company Total to exploit the equivalent of 600 million cubic feet of gas over a period of five years.

Oil-producing nations have the potential to provide an additional $82 billion in annual resources by harnessing the flared gas, also known as associated gas, during the oil extraction process, according to Global Data.

Russia, Iraq, Iran, the United States, Algeria, Venezuela, and Nigeria are considered the top seven countries that have consistently flared gas over the past nine years since the launch of the first satellite in 2012 to track gas flaring operations, according to World Bank data.

These seven countries account for 40% of global oil production annually, yet they contribute to approximately two-thirds of global gas flaring operations.

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