Decline in production levels at North Oil Company: Now at 300K bpd
Shafaq News/ The North Oil Company, one of the largest state-owned enterprises, has reported a significant decrease in its production levels, now at 300,000 barrels per day (bpd), amid ongoing challenges in Iraq's oil sector.
such decline is particularly critical as the company plays a vital role in exporting crude oil through the Turkish port of Ceyhan, which has been inactive for nearly two years due to disputes. Additionally, Iraq's overall oil exports saw a sharp drop in September, attributed to compliance with OPEC+ production quotas.
Significant Decrease in Oil Exports
The Iraqi Ministry of Oil announced on October 24, 2024, that the volume of crude oil exported in September reached 99,311,107 barrels, reflecting a decrease of over 6.5 million barrels from August's total of 105,559,525 barrels.
A source within the North Oil Company indicated to Shafaq News Agency that the company’s production level, which typically ranges between 300,000 and 350,000 bpd, has now settled at 300,000 barrels. This reduction is part of the company's overall strategy to decrease production, maintaining an average output within the stated range.
Pipeline Repairs Completed
The source further noted that the North Oil Company has completed repairs on the pipeline that was damaged by ISIS, addressing affected sections between Kirkuk, Saladin, and Nineveh, extending to the Iraqi-Turkish border. “The company has successfully replaced damaged parts and completed all repairs, making the pipeline ready to transport any quantity designated by the Iraqi Ministry of Oil.”
“A portion of the production is allocated for exporting 10,000 barrels to Jordan and approximately 100,000 barrels for local refining. Additionally, certain quantities are provided to private refineries in Erbil and Al-Sulaymaniyah, as specified by the Ministry of Oil for gasoline and petroleum product production,” the source continued.
Iraqi-Turkish Pipeline Fully Operational
“The Iraqi-Turkish pipeline is now prepared to transport oil from Kirkuk fields to the Ceyhan port. The North Oil Company conducted two phases of oil pumping tests, successfully executing the initial pumping from Kirkuk fields to the Beiji refineries. The second phase began at the Beiji gathering and pumping station, passing through Ain Jahsh and Shoura, and reaching the final pumping station in Duhok. The pumping process confirmed the pipeline's readiness at 100%,” according to the source.
Potential Agreement with Baghdad on Oil Exports
On October 17, the Ministry of Natural Resources in the Kurdistan Regional Government announced that a delegation from the Iraqi Ministry of Oil discussed various issues in Erbil.
Acting Minister of Natural Resources in Kurdistan, Kamal Mohammed, stated that “the ministry expects to reach a forthcoming agreement with Baghdad regarding the resumption of oil exports from the Region,” noting that “there is no objection from the Region to export oil through the SOMO company and transfer all revenues to the federal treasury, however, the current obstacle pertains to extraction costs, with companies contesting the specified amount of $6.”
The minister added that oil companies have pressured the Iraqi government to resume exports, indicating that a delegation from Baghdad is currently in the Region to address this matter. “The Kurdistan government has facilitated the resumption of exports and has accompanied contracted companies to Baghdad three times. However, these companies are unable to produce at the designated price, expecting to reach a suitable resolution with Baghdad on this issue.”
It is noteworthy that the reduction in oil production rates in Kurdistan was initiated at Baghdad's request as part of Iraq's commitments to OPEC+.
