Page 5 - MEOG Week 44
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MEOG COMMENTARY MEOG
pipeline) rather than the KRG’s own line that are included in the Iraqi total.
connects Dohuk to the metering station at Fish- Baghdad has previously blamed the KRG for
khabour on the Turkish border. Iraq’s inability to comply with the reductions, but
Kirkuk-Ceyhan consists of two strings, which a lack of routes to market could lead to produc-
originally had a combined nameplate capacity of tion being shut in until repairs are completed.
1.6mn barrels per day, with the wider, 46-inch Kurdish oil production is running at around
(1,168-mm) pipe capable of carrying 1.1mn 450,000 bpd, the bulk of which is exported via
bpd and the narrower 40-inch (1,016-mm) line pipeline or by tanker truck.
500,000 bpd. In both August and September, Iraqi pro-
However, following years of sabotage and dis- duction averaged 3.74mn bpd according to
repair, it is not believed to be capable of achieving an OPEC+ survey by S&P Platts; however, it
more than 500,000-600,000 bpd, with roughly fell short of making the compensatory cuts of
half of this taken up by Federal Iraqi crude from 314,000 bpd in August and 313,000 bpd in Sep-
the fields around Kirkuk. This massive underuti- tember promised by the State Oil Marketing
lisation is nothing new, though, with the conduit Organization (SOMO) in July.
having routinely been attacked at various stages
over the years, with throughput falling to around Gas pipe blast
250,000 bpd during the IS invasion. Southern Iraq experienced a pipeline blast of
The other, Erbil-controlled, pipeline, which its own over the weekend, with three people
runs from the Taq Taq field via Khurmala to killed and more than 50 injured when a gas line
Fishkhabour, was designed to carry 700,000 exploded near the southern city of Samawa, 270
bpd, but Federal Iraqi oil would need to be put km south of Baghdad.
under the control of the KRG to make full use While the cause of the incident has not yet
of the duct. been confirmed, it is not believed to have been
the result of any attacks, with gas leaks having
Output drop previously been reported near the location of the
While a drop in oil exports poses a significant explosion.
threat to the KRG, which is already facing a Local authorities said that firefighters had
financial crisis and reports of growing corrup- managed to contain the fire after shutting off
tion, it could present a boon to Baghdad, which the gas, with flows to power plants expected to
has struggled to cut production in compli- resume within hours of the blast via an alter-
ance with OPEC+ quotas. For the purposes of native pipeline route to avoid any shortfall in
OPEC+, both Federal and Kurdish production supply.
Week 44 04•November•2020 www. NEWSBASE .com P5
