- Title: IRAQ: Iraq opens new Gulf crude export outlet
- Date: 13th February 2012
- Summary: FAW, SOUTHERN IRAQ (FEBRUARY 12, 2012) (REUTERS-ACCESS ALL): WIDE OF INSTALLATIONS AT FAW OIL GULF DEPOT PIPELINES NETWORK AND OIL STORAGE SIGN READING " SOUTH OIL COMPANY, SEA EXPORT FACILITIES, AL-FAYDH SYSTEM" OIL FACILITIES AT BACKGROUND PRIME MINISTER NURI AL-MALIKI GETTING OFF VEHICLE WITH BASRA GOVERNOR KHALAF ABDUL SAMAD PRIME.MINISTER NURI AL-MALIKI WITH HEAD OF BASRA CITY COUNCIL SABAH AL-BAZOONI, DEPUTY PRIME MINISTER FOR ENERGY HUSSEIN AL-SHAHRISTANI AND MINISTER OF TRANSPORT HADI AL-AMIRI AND GROUP OF CHILDREN CARRYING FLOWERS/ MALIKI CUTTING RIBBON MALIKI STANDING WITH HEAD OF SOUTH OIL COMPANY OPENING TAP/ CLAPPING (SOUNDBITE) (Arbic) HEAD OF STATE-RUN SOUTH OIL COMPANY DHIYA JAAFAR, SAYING: "The inauguration of the project today is one of the important achievements of the ministry of oil and the Iraqi government in the current stage. Today we inaugurated the first stage of a project to increase Iraq's export capacity and God willing we hope we will start loading the first tanker in a week to 10 days. It is a promising project and it will lay the corner stone for a future Iraqi oil industry" SECURITY GUARDS STANDING GUARD AT FACILITIES OF OUTLET BASRA, IRAQ (FEBRUARY 12, 2012) (REUTERS-ACCESS ALL); (SOUNDBITE) (Arabic) DEPUTY PRIME MINISTER FOR ENERGY HUSSEIN AL-SHAHRISTANI, SAYING: "Actually we inaugurated tow outlets and two pipelines. The total export capacity of the two outlets is 1.7 million barrels. The second terminal, which is Basra oil terminal has a capacity of 1.7 (million barrels). By the opening of the two outlets, the export capacity of the southern area alone will be more than 3.4 million barrels a day." FAW, SOUTHERN IRAQ (FEBRUARY 12, 2012) (REUTERS-ACCESS ALL): BIG VALVE JOINING TWO PIPELINES BASRA, IRAQ (FEBRUARY 12, 2012) (REUTERS-ACCESS ALL); (SOUNDBITE) (Arabic) DEPUTY PRIME MINISTER FOR ENERGY HUSSEIN AL-SHAHRISTANI, SAYING: "We expect annual export rate to reach 3.25 million barrels a day or maybe more next year" FAW, SOUTHERN IRAQ (FEBRUARY 12, 2012) (REUTERS-ACCESS ALL): FACILITIES AT OUTLET RE-INJECTION PUMPS AT SITE PIPELINES AT SEA OUTLET SECURITY GUARDING FACILITIES PEOPLE WALKING PAST GIANT STORAGE DEPOTS
- Embargoed: 28th February 2012 12:00
- Location: Iraq, Iraq
- Country: Iraq
- Topics: Environment,Politics,Energy
- Reuters ID: LVA4TSJUNT0OKQBYLW6GH81RWB0J
- Story Text: Iraq expects to export an additional 300,000 barrels of oil per day after opening a new Gulf crude export outlet in Basra.
Iraq opened a new Gulf crude export outlet in the southern oil hub of Basra on Sunday (February 12), clearing the way for Baghdad to increase exports by around 300,000 barrels per day soon after crude begins loading.
Loading at the Single Point Mooring or SPM outlet for tankers in the Gulf, part of Iraq's large-scale export facility expansion plan, has already been delayed several times by bad weather and technical hitches.
Oil will be pumped through offshore pipelines in a last test procedure before tankers start loading in a week to 10 days, the head of state-run South Oil Company, Dhiya Jaffar, told Reuters at an opening ceremony for the SPM.
"The inauguration of the project today is one of the important achievements of the ministry of oil and the Iraqi government in the current stage. Today we inaugurated the first stage of a project to increase Iraq's export capacity," said Jaffar.
"We hope we will start loading the first tanker in a week to 10 days. It is a promising project and it will lay the corner stone for a future Iraqi oil industry," addedJaffar.
Jaffar said that if the project went according to plan, exports from Iraq's southern oilfields will rise to around 1.9 million bpd by March and bring Iraq's total shipments to 2.3 million bpd, the highest level since the 2003 invasion that ousted Saddam Hussein.
Iraqi officials have said they are targeting 2.6 million bpd by May for total exports.
That will require monthly increase of 100,000 bpd in the south through mid-year when maximum rates of 2.2 million bpd are reached and exports from Iraq's north steady at 400,000 bpd> The OPEC member has a $1.3 billion plan to expand its export facilities in the south, including two undersea pipelines, one offshore pipeline and four single-point mooring terminals.
Another SPM could be ready in three to four months, Jaffar said.
Iraq's infrastructure is outdated and lacks the capacity to handle increasing output from foreign companies such as Shell, Exxon and BP, who signed massive development contracts for its Rumaila, West Qurna-1 and Zubair oilfields.
Bringing three SPMs online by the end of the year would expand Iraq's export capacity in the Gulf by 2.7 million bpd, more than double Basra's current capacity. Its current Gulf terminals can handle around 1.7 million bpd.
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