Turkey’s Jihan Port Readies for Oil Exports from Kurdistan Region
Overview
The Undersecretary of the Ministry of Oil for Extraction Affairs, Mohamed Khudair, has confirmed that Turkish representatives have indicated the readiness of the Jihan Port to receive oil shipments. This follows the completion of inspections on the crude oil export pipeline located in the Kurdistan region.
Export Preparations
In an official statement, Khudair articulated that the Ministry of Oil has fulfilled its obligations and is now awaiting a confirmation from the Kurdistan region to establish a date for oil exports at an initial rate of 185,000 barrels per day. This figure is in alignment with production capacities outlined in the federal budget for the forthcoming period.
Budget Amendments and Obligations
Khudair emphasized that the Iraqi Council of Representatives approved a budget amendment on February 2, which specified compensation amounts for oil production and transportation within Kurdistan. This amendment mandates that the Kurdistan Regional Government transfer its oil production to the Iraqi Oil Marketing Company (SOMO), which operates under the Federal Ministry of Oil.
Kirkuk Oil Fields Development
In regard to the rehabilitation and development of the four oil fields in Kirkuk, Khudair stated that a finalized contract with the British firm BP has been prepared and is currently under review by the consulting company Kelvin Line. This arrangement anticipates the formal signing of the agreement in the near future.
Details of the Agreement
He noted that the North Oil Company of the Iraqi Ministry of Oil entered into this agreement with BP on February 25 in Baghdad, with the presence of Prime Minister Mohammed Shia Al-Sudani. The contract addresses the rehabilitation of four fields—Bay Hassan, Kirkuk (referred to as Baba and Afana), Jambour, and Khabbaz—with a target production capacity set at a minimum of 420,000 barrels per day within two to three years. Furthermore, the investment plan includes the utilization of 400 million standard cubic feet of associated gas and an additional 400 megawatts of power generation.
