Investment Opportunity in Ziyen.com, the owner of Rebuilding Iraq

+44(0) 800 772 3004
marketing@ziyen.com

Iraqi Kurdistan Pipeline Could Reopen By the End of the Week

The three-week outage of Iraqi Kurdistan's pipeline which carries oil to the Mediterranean port of Ceyhan could likely open soon.


The three-week outage of Iraqi Kurdistan's pipeline which carries oil to the Mediterranean port of Ceyhan could likely open soon. Full operation of the Ceyhan pipeline may not occur for another week since military presence and unrest continues in the area surrounding the pipeline. 

As long as the pipeline remains closed, Kurdistan will continue to miss out on the funds from having previously exported approximately 600,000 barrels per day (bpd) through Turkey. This could bode catastrophic for the semi-autonomous nation that is on the verge of a complete economic and infrastructure collapse.

The hopefully temporary closure of the Ceyhan pipeline has left Kurdistan Regional Government (KRG) with only around $233 million in net revenue from its oil exports in February. This amounts to less than one third of what KRG needs to cover a bloated public payroll. However, the war against IS and plummeting oil prices meant KRG was already operating under an immense monthly deficit. 

 

Categories

Read more news like this