The Organization of the Petroleum Exporting Countries second-largest producer, Iraq is set to increase crude oil exports by around 5% in the coming days following an agreement to restart shipments from three oil fields located in Kirkuk.
Shipments from the country will grow by roughly 150,000 barrels per day as the country resumes exports from Khabbaz, Jambour and Baba Gorgor oil fields, according to one of the Kirkuk provincial council’s oil and energy committee members, Fouad Hussein.
The oil fields in which operations are to be resumed are all operated by Northern Oil Co. – a company run by the Iraqi state. However, the company’s export pipeline is operated by the Kurdistan Regional Government (KRG), which is partially autonomous.
The Northern Oil Co. had stopped exports from those three fields back in march, following a payment dispute with the KRG but Iraq’s latest oil minister, Jabbar-al-Luaibi, speaking on his first day in the role said that he could see how the dispute could be resolved with the Kurds. As well as that, the Prime Minister gave orders for the oil ministry to restart the pumping of oil into the pipeline.
This has been a tough year for the Iraqi oil industry, with the company struggling to bolster oil exports. In fact, in July, the country’s oil exports totalled only 3.71 million barrels per day – a low number for one of the biggest oil producers in the country. However, with the strengthened relations between KRG and the Iraqi government, things are set to look up, and we could see more Iraqi oil being used in products like Mobilgrease XHP 222.