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Iran Conflict 2026
29OCT

Iraq ramps Ceyhan pipeline toward 770kbd

3 min read
17:49UTC

Iraq is raising Kirkuk-Ceyhan pipeline throughput from 220kbd toward a 770kbd target over roughly two and a half months, the first new European-accessible crude route since the conflict began.

ConflictDeveloping
Key takeaway

Ceyhan is the first real new supply lever, and its medium sour grade is what makes it count.

Iraq is ramping the Kirkuk-Ceyhan pipeline from 220kbd (thousand barrels per day) toward a 770kbd target over roughly two and a half months⁠1. The line carries crude from the Kirkuk fields to Ceyhan, Turkey's Mediterranean export terminal, delivering oil to European refiners without touching The Gulf. The push comes as Iraq's southern output fell 70% to 1.3mbd and its seaborne exports dropped 97% in May, so the northern pipeline is replacing collapsed southern volume.

Oil funds about 90% of Iraqi state revenue, which makes the ramp a fiscal necessity rather than an opportunistic grab for market share. With the south choked, Baghdad has to push crude through the only export artery still open to it.

Kirkuk's medium sour barrels map directly onto the feedstock Mediterranean refiners lost when Russian Urals and Iraqi Basra supply tightened, so the addition matters by grade as much as by volume. That substitution, rather than the headline barrel count, is why a full ramp to 770kbd would rank as the largest European-accessible crude addition of the conflict so far. Where early-May freight priced a Hormuz-wide closure with the VLCC TD3C route near WS458, Ceyhan reframes the question from how to avoid The Gulf to whether the Mediterranean can be loaded fast enough to refill it.

Deep Analysis

In plain English

Iraq has two main ways to get its oil to buyers. The first is southern ports in The Gulf, which use supertankers, but those tankers cannot easily pass through the strait of Hormuz blockade right now. The second is a long pipeline running north through Iraq and Turkey to the Mediterranean coast at Ceyhan. Iraq is now trying to push as much oil as possible through that northern pipeline, ramping it from its current 220,000 barrels a day up to a target of 770,000. That oil would reach European refineries much more easily than Gulf oil right now. The problem is that this pipeline has had political disputes for years over who controls the oil fields and who gets paid what, so getting it to full capacity is not straightforward.

Deep Analysis
Root Causes

Iraq's southern seaborne exports collapsing 97% to 1.3mbd reflects the Hormuz closure's direct impact on a country that routes most of its southern production through Basra Oil Terminal and Al-Faw, both of which require VLCC tankers that cannot safely transit a blockaded strait. Unlike Kuwait, which also has southern port dependency, Iraq has the Kirkuk-Ceyhan alternative.

Activating that alternative at scale requires resolving three overlapping constraints simultaneously: the Erbil-Baghdad lifting rights dispute, pipeline integrity maintenance deferred during the years of low utilisation (220kbd for most of 2024-25), and Turkey's transit tariff demands which EPDK has historically leveraged as a fiscal policy instrument.

What could happen next?
  • Opportunity

    A fully ramped Kirkuk-Ceyhan at 770kbd would add roughly one-third of Libya's total export programme to Mediterranean supply, providing a partial offset for the Gulf closure that European refiners have not had since April.

  • Risk

    The KRG-Baghdad fiscal dispute and Turkey's transit leverage mean the ramp could stall or reverse if payment terms collapse, as they did during the 2022-2023 shutdown.

First Reported In

Update #6 · OPEC's quota is fiction at a 37-year low

OilPrice.com· 8 Jun 2026
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Causes and effects
This Event
Iraq ramps Ceyhan pipeline toward 770kbd
Kirkuk's medium sour slate substitutes for the Basra and Urals feedstock Mediterranean refiners lost, so a 550kbd addition could soften Med sour differentials on grade match alone, independent of where the flat price sits.
Different Perspectives
United States (Joint Maritime Information Center)
United States (Joint Maritime Information Center)
The JMIC, the US-led naval reporting cell, rated the Hormuz threat "severe" in its 25 October advisory, as reported by gCaptain, and warned of possible renewed mining. Eight days earlier it found no substantiation for the Guards' mine claims, while US-facilitated transits ran at about 34 a day.
United Kingdom (CPS and Counter Terrorism Policing)
United Kingdom (CPS and Counter Terrorism Policing)
The CPS charged two men under the National Security Act 2023 over the RAF Fairford incident, and Counter Terrorism Policing said it believes the foreign intelligence service involved is Iran's, LBC reported. The case now runs through the courts; both men are charged, not convicted.
Aden and Yemen's recognised government
Aden and Yemen's recognised government
The Houthis told people to leave Aden airport, in the government-held south, before a missile fell there on 28 October, AFP reported, and police reported a second attack that afternoon. The fight between Riyadh and the Houthis is landing on the south's main civilian airport.
Qatar (mediators)
Qatar (mediators)
Qatar-led mediators put new terms to Iran this week, which an Iranian official called "ideas, not a proposal". Riyadh framed the Tehran meeting as support for Qatari and Pakistani mediation, keeping Doha at the centre of the indirect channel.
Korea Shipowners' Association
Korea Shipowners' Association
The association said the ships Iran listed were sub-chartered to an overseas oil company, not owned by Sinokor, carried no South Korean crew, and that Sinokor was unaware of the warning. South Korea's shipowners are contesting whose vessels the notice covers before it takes effect.
Kuwait (foreign ministry)
Kuwait (foreign ministry)
Kuwait summoned Iran's ambassador, Mohammad Toutounji, and handed him a protest note over the embassy's denial that its citizen took part in the alleged plot against Interior Minister Fahad Al-Yousef. Kuwait is answering through its courts and a diplomatic protest, citing international law and the UN Charter.

Written with AI from Lowdown's published reporting. Not individually reviewed by an editor. Editorial standards.