Kurdistan is set to increase the capacity of its oil pipeline via Turkey to 700,000 barrels per day (bpd) following upgrade work.
By the end of 2014, it will raise the flow to 400,000 bpd, from a current 280,000 bpd. The boost in supply will add to the current global glut of available oil and is likely to weigh process down in the near future.
“There is further technical upgrade work ongoing right now and once that is finished, the pipeline capacity will reach its designed volume which is 700,000 bpd,” one industry source said.
“I believe the work will be completed in two to three weeks,” the source said.
The Kurdish pipeline to the Turkish port of Ceyhan, first began operating at the start of this year. The central government in Baghdad was angered by its opening and claims the independent export of Kurdish oil amounts to theft.
Earlier this year, Baghdad took its case to court and blocked the discharge of one tanker off Texas earlier this year.
KRG argues that its shipments are allowed under the Iraqi constitution.
A total of 19.2 million barrels of oil have been exported via Ceyhan, Turkish officials said, and around $400 million has been deposited with Turkish state lender Halkbank as a result.
