The Fate of Kurdistan Region’s Oil Between Ceyhan and Baniyas
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2025-08-12 20:21:38
As Turkey increases pressure on Iraq to export oil through the Ceyhan pipeline at full capacity, the Baghdad government has entered into talks with Syria to revive the Kirkuk–Baniyas pipeline—a line that has been out of service since the 1980s. It is expected that negotiations over its reactivation will be challenging for both countries. Will Kirkuk oil be sent to Syria? This report examines the fate of Kurdistan’s oil between the ports of Ceyhan and Baniyas.
A Discreet Visit
Syrian Minister of Oil, Mohammad Bashir, visited Baghdad and met with Iraq’s Oil Minister, Hayyan Abdul Ghani.
According to Syria’s state news agency (SANA), the Syrian minister stated during the meeting that Syria imports approximately 3 million barrels of oil per month to meet its domestic needs, in addition to its limited production.
The visit was kept low-profile and was organized at the invitation of Iraq’s Oil Minister.
The Baniyas Pipeline — An Old Effort
The Syrian minister stressed the importance of restoring the oil pipeline between Iraq and Syria, saying:
“The old Kirkuk–Baniyas line has completely aged and needs a comprehensive technical review.”
Iraq’s Oil Minister, Hayyan Abdul Ghani, expressed interest in reactivating the Iraq–Syria crude pipeline. He proposed assigning a specialized consultant to assess the current condition of the line and explore the possibility of either restoring it or building a new one.
Abdul Ghani added that recent regional events — including the ongoing conflict between Israel and Iran, and the risk of maritime shipping disruptions — could impact Iraq’s oil exports, making alternative export routes a strategic necessity.
The idea of reviving the Kirkuk–Baniyas line first resurfaced in October 2023, when Bashar al-Assad was still in control of Syria. With Iranian backing, Iraq began to discuss reopening the line. At that time, the Iraqi Ministry of Oil even sent technical teams to rehabilitate parts of the Kirkuk–Baiji–Haditha route (about 300 km), with plans to negotiate with Syria to restore the remaining sections damaged by war and unrest.
Earlier reports suggested Iran was seeking to use this pipeline as an alternative export route to bypass U.S. sanctions, since the Kirkuk–Baniyas route passes through areas controlled by Iranian allies (Iraq’s Popular Mobilization Forces and the Assad regime). However, the political landscape has since changed: Syria remains under Iranian influence, but inside Iraq, the PMF faces heavy U.S. pressure.
Can the Baniyas Line Be Revived?
Ghiyath Diab, Syria’s Deputy Oil Minister for Affairs, said during the meeting:
“The pumping stations along the pipeline are near collapse and require full renovation — including replacing pipes, tanks, pumps, and electrical and mechanical infrastructure.”
He also mentioned a parallel project to lay a fiber-optic telecommunications cable along the same route, linking Syria to Lebanon.
The two ministers agreed to assign a joint technical and advisory team to assess the current situation and to form a high-level committee, chaired by Syria’s Oil Minister, to coordinate projects between the two countries.
The key question now is whether Iraq can simultaneously restart both the Iraq–Turkey (Ceyhan) line and the Iraq–Syria (Baniyas) line, especially as Baghdad seeks alternative export options beyond its southern ports.
Financial and Political Obstacles
According to Eco Iraq, a specialized economic think tank, rehabilitating the Kirkuk–Baniyas line could cost between $400–600 million. Both Iraq and Syria are financially strained and cannot afford such a project alone. The organization suggests the best solution is to build a new, higher-capacity line through a partnership with a third country that can provide both technical expertise and financing.
Economic expert Nabil Marsoumi, from oil-rich Basra province, is skeptical about the project. He notes Iraq’s poor history with oil pipelines: Syria shut this line in 1982; later, Saudi Arabia closed its pipeline; and more recently, Turkey shut the Ceyhan line. In all these cases, Iraq suffered major losses. Marsoumi warns that if Syria rebuilds the line now, there is no guarantee it won’t shut it again in the future.
In 2007, Iraq and Syria agreed to rebuild the Kirkuk–Baniyas line through a company affiliated with Russia’s Gazprom, but the agreement collapsed in 2009 due to rising costs and other disputes — a precedent that raises doubts about the current plan.
Strategic Leverage on Turkey
Some analysts see the Syrian minister’s visit and discussion of the Kirkuk–Baniyas revival as a way for Baghdad to pressure Turkey, especially as Ankara recently ended its crude export deal with Iraq via Ceyhan. Turkey has made it clear that it will only extend the pipeline’s lifespan if Iraq supplies it at full capacity — more than 1 million barrels per day.
This pipeline has been idle since March 25, 2023, when Turkey halted Kurdistan oil exports after an international arbitration ruling in favor of Baghdad. The Kurdistan Regional Government (KRG), relying on an “independent oil policy” since 2014, had been exporting its own crude through Ceyhan until the court case forced a halt.
Baghdad now appears determined that, if the KRG hands over its oil to Iraq’s SOMO, future exports will be routed through Kirkuk — whether via the Kirkuk–Ceyhan line or, in the longer term, through the Kirkuk–Baniyas line.
About the Kirkuk–Baniyas Line
The Kirkuk–Baniyas pipeline was one of Iraq’s most important oil export projects in the mid-20th century. Built in 1934 and stretching over 800 km, the first pipeline was 12 inches wide and could carry 85,000 barrels per day. Later expansions in the 1950s and 1970s increased capacity with additional 30- and 32-inch lines.
In 1982, Iraq stopped sending crude via Syria due to Damascus’s support for Iran during the Iran–Iran-Iraq War. The line connected Kirkuk’s oil fields to Syria’s Baniyas port on the Mediterranean, giving Iraq a strategic route to European markets.
Large sections of the pipeline inside Syria have been damaged due to the war. On the Iraqi side, the line from Kirkuk to Baiji (120 km) is still functional, capable of moving 600,000 bpd, but from Baiji to Haditha (200 km) it narrows to 30–32 inches, limiting capacity to 150,000 bpd. Experts say it would need to be upgraded to 40–42 inches to match the 600,000 bpd capacity.