IRAQ/FILE: Iraq's oil output rises above 3 million barrels per day for the first time in decades and the country plans to increase exports

Record ID: 344128

  • Title: IRAQ/FILE: Iraq's oil output rises above 3 million barrels per day for the first time in decades and the country plans to increase exports
  • Date: 6th March 2012
  • Summary: (FILE) RUMAILA OILFIELDS, BASRA, IRAQ (FILE) (ORIGINALLY 4:3) (REUTERS) GV'S OF RUMAILA OIL INSTALLATIONS VARIOUS OF OIL EMPLOYEES WORKING IN OILFIELD
  • Embargoed: 21st March 2012 12:00
  • Keywords:
  • Location: Iraq
  • Country: Iraq
  • Topics: Business,Economy,Energy
  • Reuters ID: LVA1F1Q0U3LSQ4FUOHY2FKOERAT1
  • Story Text: Iraq's oil production has risen above 3 million barrels per day, and the country will begin long-awaited exports from its first off-shore floating oil terminal within three days, Deputy Prime Minister Hussein al-Shahristani said on Monday (March 5).
    "While I am talking to you today, the Iraqi oil production has exceeded 3 million barrels per day," Deputy Prime Minister Hussein al-Shahristani told a conference in Baghdad.
    "Loading crude from the first floating oil terminal will start during the next three days."
    Increasing export capacity is a cornerstone of Iraq's ambitious plans to revive its oil industry after years of war, economic sanctions and neglect, and jump into the top ranks of global producers and exporters.
    Oil executives involved in Iraq's oil development projects injected a note of caution. They see a gradual rise in Iraq's production, which ran just below 2.7 million bpd in 2011, to an average 3 million bpd this year.
    Shahristani's figures, if sustained, would signal a major increase in Iraqi output. Oil Minister Abdul-Kareem Luaibi called it the highest figure since 1979.
    Iraq's $1.3 billion export expansion project in the Gulf includes the construction of two undersea pipelines and one onshore pipeline, as well as four single-point moorings for loading tankers.
    Iraq's current export infrastructure is outdated and lacks the capacity to handle the expected large increases in production from its southern oilfields.
    The Baghdad government has awarded a series of massive development contracts to foreign majors such as Shell, Exxon Mobil and BP, targeting output capacity of 12 million bpd by 2017. However, most analysts see 6 million to 7 million bpd as a more realistic goal.
    Iraq is currently producing close to 3 million bpd while exports averaged 2.165 million bpd last year, according to the State Oil Market Organisation.
    Exports are expected to average 2.5 million bpd this year.
    Bringing the first three Single-point moorings (SPMs) on line would boost Iraq's export capacity in the Gulf by 2.7 million bpd, more than doubling Basra's current capacity. Its two current Gulf terminals can handle around 1.7 million bpd.
    Iraq also has plans in place to build a third Gulf pipeline and a fourth SPM, while a fifth SPM is on its wish list.
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