The Kurdistan Regional Government (KRG) has decided to stop shipping crude oil from Shaikan oil field to Turkish port of Ceyhan through the Kirkuk-Ceyhan oil pipeline. From now on, crude oil will be delivered to Turkey via tankers.
Gulf Keystone Petroleum, a company which operated Shaikan oil field in northern Iraq, said that it will stop pumping crude oil to Kirkuk-Ceyhan pipeline, following the order from KRG. Instead, it will carry crude oil drilled at Shaikan oil field to Turkey via tankers as of the end of this month. Kurdish Ministry of Natural Resources will bear all additional transportation costs, while Gulf Keystone will continue to pay 15 million dollars a month for crude oil sales. According to KRG, this decision was required in order to maintain the overall crude oil export quality and is expected to be temporary.
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