Iraq to export oil from southern fields via Turkey

• Avoids using Strait of Hormuz
• Desire to diversify supply routes
• Pipelines and trucks carry burden

Iraq has drawn up a plan to boost oil exports from its southern oilfields, avoiding the restricted Strait of Hormuz by using pipelines and trucks north through Turkey.

The state-owned North Oil Company (NOC) is currently producing around 390,000 barrels per day (bpd) from oilfields in central and north Iraq.

Around 170,000-180,000 bpd is being exported via the Kirkuk-Ceyhan pipeline through Turkey and could reach 220,000 bpd, said Ali Al-Shatri, director general of the State Oil Marketing Organization (Somo).

In an interview with Iraq’s Dijlah TV this week, Al-Shatri said exports would be increased to around 470,000 bpd at the end of this month and nearly 770,000 bpd at the end of July, in line with a recent cabinet decision.

“The increase in exports is not only from the northern oilfields but also from the Basra fields in southern Iraq,” he said.

“Oil from south Iraq is being transported via a pipeline from Basra to Haditha, where it is shipped by another pipeline to Kirkuk. We are also sending crude by [truck] tankers.”

Al-Shatri said the oil ministry has increased the tanker fleet to raise the amount of transported crude from 50,000 bpd to 90,000 bpd, adding that the quantity would rise to 150,000 bpd next week and that part of it would be supplies to NOC refineries.

“We are increasing supplies from Basra to NOC to support its production as we give priority to domestic consumption. The rest will be exported through Turkey,” he said.

The Iraqi prime minister’s office said last week that the plan to boost exports through the north is part of Baghdad’s initiative to diversify supply routes. Oil minister Basim Mohammed Khudair confirmed last month that Iraq exported 10 million barrels of crude through the Strait of Hormuz in April, compared to 93 million barrels per month before the Iran conflict.

In the first four months of 2026, Iraq’s oil exports totalled about 236 million barrels (1.9 million bpd), generating approximately $16 billion, according to Somo.

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In April, Iraq’s cabinet approved about $1.5 billion for a $5 billion project to construct a pipeline from Basra to Haditha in the western Al-Anbar province, from where it will extend to Turkey, Syria and Jordan.

“There is a need for Iraq to reach a new agreement with Turkey as the old pipeline pact will end on July 27. Turkey is a significant export outlet for Iraq in the current circumstances,” said Nabil Al-Marsoomi, an Iraq University economics professor.

Reuters said this week that Iraq had requested an extension of that pact for one year but that Ankara has turned down that request.

“Turkey does not want an extension of the existing Kirkuk-Ceyhan oil pipeline agreement under current conditions,” a senior Turkish official said.