Details emerge on Kirkuk-Iran pipeline

Iran’s oil minister has provided early details on a pipeline to import oil from Iraq’s Kirkuk oilfield, following a meeting late on Thursday with his Iraqi counterpart.

Bijan Namdar Zangeneh outlined a two-phase plan to import Kirkuk oil under a swap scheme in comments to reporters following his meeting with Iraq’s Jabbar Al Luaibi in Vienna.

In the first phase, oil from the field – which Iraq retook from Kurdish control in October – will be trucked over the Iraq-Iran border. These shipments were anticipated to begin this week at a rate of 15,000 bpd, which could be ramped up as high as 60,000 bpd.

A second phase will see the construction of a 400-kilometre pipeline between the Kirkuk oilfield and the Tang Fani pumping station, located in southwest Iran.

“For the second phase, we need to sign a contract for studies. A consultant has been chosen and the service description should be decided. From Tang Fani, the oil can go both to northern refineries or go south and then reaches exports lines,” Zangeneh said, as quoted by Platts. 

“I hope we sign the deal next week for the truck transfer, so we can slowly start the oil imports [and] raise it to 60,000 bpd. The important thing is to start the work and this relationship, which is a strategic one between Iran and Iraq, is established,” he added. 

The swap deal is expected to involve exports of an equivalent amount of Iranian crude from southern Persian Gulf facilities.