Baghdad: Iraq’s Oil Minister Hayan Abdel-Ghani confirmed that discussions are underway with Iran to facilitate the movement of Iraqi oil tankers through the Strait of Hormuz, following recent attacks on vessels in Iraqi waters that have disrupted exports.
In parallel, Baghdad is accelerating efforts to restore the Kirkuk-Ceyhan pipeline, a strategic route that would allow crude to be transported directly to Turkey’s Ceyhan port, bypassing the Kurdistan region. The minister stated that a 100-kilometre section of the pipeline is currently under inspection and is expected to be cleared for operations within a week.
The pipeline, which has been inactive for over a decade due to repeated attacks by Islamic State militants, once accounted for approximately 0.5 per cent of global oil supply. Its revival is seen as a critical step in reducing Iraq’s reliance on the Strait of Hormuz, a vital yet increasingly volatile global oil transit chokepoint.
According to the oil ministry, initial export capacity through the pipeline could reach around 250,000 barrels per day, with the potential to scale up to 450,000 barrels per day if crude from the Kurdistan region is included.
However, tensions persist between Baghdad and the Kurdistan Regional Government (KRG). Iraqi authorities have accused the KRG of imposing arbitrary conditions on the use of its pipeline infrastructure and warned of possible legal action if exports are hindered. Kurdish officials have denied these claims, countering that they are not obstructing flows and that unresolved security and economic issues continue to impact the region’s oil sector.
Iraq is negotiating with Iran to ensure safe passage for oil tankers through the Strait of Hormuz, amid recent attacks disrupting exports. Concurrently, efforts to revive the Kirkuk-Ceyhan pipeline are underway, aiming to reduce reliance on the strait. The pipeline's restoration could significantly boost Iraq's oil export capacity, despite ongoing tensions with the Kurdistan Regional Government.