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Iraq Shifts Export Strategy to Kurdistan Pipeline Amid Hormuz Closure

With the Strait of Hormuz effectively shuttered for over three months, Prime Minister Ali Falih Al-Zaidi has ordered oil companies in the Kurdistan region to resume full-scale operations by Thursday. The move aims to bypass maritime bottlenecks and salvage a national economy crippled by the collapse of southern Basrah shipments.

Iraq Shifts Export Strategy to Kurdistan Pipeline Amid Hormuz Closure

The directive follows a high-level meeting between Iraqi officials and Kurdistan Regional Government representatives, intended to stabilize production environments. Norway-based DNO has already begun re-activating fields, including the Tawke and Peshkabir sites, to support an aggressive drilling campaign. These northern assets now serve as the primary alternative for crude exports reaching the Turkish Mediterranean port of Ceyhan.

Baghdad intends to triple its pipeline throughput within the next 90 days, targeting an increase from the current 220,000 barrels per day to 770,000 barrels per day. Al-Zaidi emphasized that offsetting the significant losses sustained since the closure of the Strait of Hormuz is critical for fiscal recovery. By leveraging the northern corridor, Iraq hopes to mitigate the impact of the ongoing regional maritime blockade on its energy sector.

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