Iraq Unveils New Oil Export Plans, Eyes Pipeline to Syria’s Banias and Boost to Ceyhan Capacity

Peregraf — Iraq’s Ministry of Oil announced on Thursday an ambitious plan to expand the country’s export infrastructure. The proposal includes a new pipeline to the Syrian port of Banias and efforts to increase crude flows to Turkey’s Ceyhan terminal to approximately 650,000 barrels per day (bpd).

Basim Mohammed Khudair, the Undersecretary of the Ministry of Oil for Extraction Affairs, noted that the breakthrough in northern exports followed a high-level diplomatic intervention. On March 17, 2026, Tom Barrack, the U Special Envoy for Syria and Ambassador to Turkey, held a phone call with the Prime Minister of the Kurdistan Region, Masrour Barzani. This led to the current arrangement where Kirkuk crude is being pumped through the Kurdistan Region’s pipeline, which was built in 2014 with a design capacity of 900,000 bpd.

The second route—the federal Kirkuk–Fishkhabur pipeline—is currently undergoing rehabilitation. Khudair noted that the federal line has historically suffered from repeated sabotage but is currently undergoing testing. One pumping station has been restored, enabling an initial capacity of 350,000 bpd. Work is ongoing at a second station in cooperation with the Heavy Engineering Equipment Company (HEESCO) to raise federal capacity to 500,000 bpd.

He explained that current exports from Kirkuk fields are limited to around 250,000 bpd because a significant portion of production—estimated at 380,000 bpd—is diverted to domestic refineries. The North Refineries Company’s capacity has expanded to over 500,000 bpd, further limiting export volumes.

According to Khudair, once testing is finalized, Iraq could maintain exports of 250,000 bpd from Kirkuk. Simultaneously, the Kurdistan Region could contribute an additional 200,000 to 250,000 bpd into the pipeline toward Ceyhan. Today, March 26, 2026, marks the 27th day of the US-Israel War on Iran which began February 28, 2026.

Regarding the long-defunct Kirkuk–Banias pipeline, Khudair confirmed it is no longer operational. Instead, the Ministry is studying a new strategic route linking Iraq to Banias via a proposed Basra–Haditha pipeline, which would include branches toward both Jordan and Syria.

He emphasized that Iraq’s strategy includes upgrading both southern systems and northern routes. Additional contingency plans involve reviving the Aqaba export project and using tanker trucks to transport crude to Turkey, Jordan, and Syria. Since the outbreak of the US-Israel War on Iran, the Ministry has intensified coordination through the State Organization for Marketing of Oil (SOMO), which oversees all Iraqi crude exports.