- Title: IRAQ: Iraq to boost southern oil storage to 8.5 million barrels by end-2013
- Date: 15th January 2013
- Summary: BASRA, IRAQ (JANUARY 14, 2013) (REUTERS) STORAGE TANKS IN ZUBAIR 2 STORAGE FIELD CRANES NEAR STORAGE TANKS UNDER CONSTRUCTION IRAQI FLAG HANGING ON STORAGE TANK MORE OF IRAQI FLAG HANGING FROM OIL STORAGE TANK PIPES TRANSPORTING OIL TO TANKS SIGN OF OIL MINISTRY AT ENTRANCE TO OIL STORAGE AREA SIGN READING (Arabic): UNDER THE PATRONAGE OF THE MINISTER OF OIL, SOUTH OIL COMPANY COMMENCES FOUR STORAGE TANKS AT ZUBAIR 2 STORAGE FIELD HEAD OF THE STATE-RUN SOUTH OIL COMPANY DHIYA JAFFAR CUTTING RIBBON JAFFAR TURNING VALVE OIL WORKERS AT SITE (SOUNDBITE) (Arabic) HEAD OF THE STATE-RUN SOUTH OIL COMPANY, DHIYA JAFFAR, SAYING: "Today we have commenced four storage tanks of a total capacity of 58,000 cubic metres. Hence we added a storage capacity of up to one million barrels per day. This capacity constitutes 18 percent of the current storage capacity, which stands at 5.5 million barrels." VARIOUS OF OIL PIPES (SOUNDBITE) (Arabic) HEAD OF THE STATE-RUN SOUTH OIL COMPANY, DHIYA JAFFAR, SAYING: "Shutting down production, has a negative impact on oilfields' operations and is a source of tension with foreign oil firms, and in some cases it might also cost us compensation for losses incurred by these firms. Thus, the one million, storage capacity, which was added today, will help us surmount these problems and God willing we will add another one million barrels' capacity by the next month to reach a stability of export rate." VARIOUS OF OIL STORAGE TANKS
- Embargoed: 30th January 2013 12:00
- Keywords:
- Location: Iraq
- Country: Iraq
- Topics: Business,Industry
- Reuters ID: LVA3WXG7Z1MWKF929HCNOXOEPVOT
- Story Text: Iraq plans to increase its southern oil storage capacity to 8.5 million barrels by the end of 2013, to help cope with export bottlenecks caused by bad weather or technical problems, a senior Iraqi oil official said on Monday (January 14).
Speaking at the opening of four new oil storage tanks near the southern city of Basra, the head of the state-run South Oil Company said the new facility will add a capacity of one million barrels to the existing 5.5 million barrels available.
"Today we have commenced four storage tanks of a total capacity of 58,000 cubic metres. Hence we added a storage capacity of up to one million barrels per day. This capacity constitutes 18 percent of the current storage capacity, which stands at 5.5 million barrels," Dhiya Jaffar told Reuters.
Jaffar said the storage capacity increase will help Iraq to pump crude to export terminals at the Gulf for a period of more than a week to avoid export halts during rough weather or any other unexpected glitches at the southern oilfields.
"Shutting down production has a negative impact on oilfields' operations and is a source of tension with foreign oil firms, and in some cases it might also cost us compensation for losses incurred by these firms," Jaffar said.
"The one million storage capacity, which was added today, will help us surmount these problems and God willing we will add another one million barrels' capacity by the next month to reach a stability of export rate,'' he added.
Export infrastructure, rather than production, is the main hurdle to the OPEC-member keeping exports steady.
Iraq's oil exports fell to 2.34 million barrels per day (bpd) in December from 2.62 million bpd in November due to rough weather and technical problems with a single point mooring terminal in the Gulf.
Iraq is expected to be the world's biggest source of new oil supplies over the next few years. It plans to open up more rounds for oil and gas blocks for auction.
A handful of international companies won bids last May at Iraq's fourth energy auction, which had a poor showing because of tough contract terms drawn up by Baghdad.
Iraq has offered foreign companies less attractive service agreements, in which they receive a fee rather than the Kurdistan's production-sharing deals, which allow them to profit jointly from the output. - Copyright Holder: REUTERS
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