Norwegian oil company DNO started putting oil in storage tanks at fields located in the semi-autonomous Kurdistan region of northern Iraq as the MENA country halted exports through a pipeline to the Turkish port of Ceyhan, Reuters reported
On March 24th, Iraq halted its northern region’s crude exports after the country won an arbitration case in which it said that Turkey violated a joint agreement by allowing the Kurdistan Regional Government (KRG) to export oil to Ceyhan. After the ruling, Turkey stopped pumping Iraqi crude from the pipeline.
DNO stated that it started diverting oil production to storage on March 24th and that the tanks can hold “several days” worth of production.
The company said from public reports that authorities in Ankara, Baghdad, and Erbil are in discussion to reach agreements that will allow oil exports to resume.
Before the shutdown, the pipeline was capable of transporting around 400,000 barrels per day (bbl/d) of Kurdish oil in addition to 70,000 bbl/d of other Iraqi oil to global markets.