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Iraq raises capacity of southern oil exports

Oil prices rally after Saudi Arabia's announcement on exportsBaghdad : The Iraqi Oil Ministry on Sunday announced it has increased the capacity to export oil from the southern port of Basra to 4.6 million barrels per day (bpd) after building a new floating terminal.

“The increase in export capacity to unprecedented levels was achieved after the completion of the fifth floating terminal, which added a new export capacity of 900,000 bpd,” Iraqi Oil Minister Jabbar Luaybi said in a statement, Xinhua reported.

According to him, “the oil exports capacity means that Iraq has the ability to export 4.6 million bpd, not necessary to mean that Iraq will export such quantities of oil”.

Iraq had plans to build five single-point mooring (SPM) with an export capacity of 850,000 to 900,000 bpd in an attempt to increase oil exports through the oil-hub of Basra.

The new terminal is one of five floating terminals with similar oil capacity the Iraqi oil ministry has been building to increase its oil export capacity via Basra port to more than 5 million bpd.

Iraq’s oil exports average was about 3.13 million bpd in the first 22 days of October from Basra. The country depends on oil revenues for nearly 95 percent of its budget.

In 2010, Iraq announced its proven oil reserves had increased to 143.1 billion barrels from the previous estimation of 115 billion barrels.

—IANS

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