Iraq to Increase Crude Exports Capacity

Iraq will boost its oil export capacity to 850,000 bpd by the end of January, which will allow it to simultaneously increase production, the country's oil minister said. The increase comes as part of a program launched in 2007, which includes plans for the construction of five floating terminals in the Persian Gulf south of Iraq.

"The first of these terminals will be inaugurated on 25 January, and after a trial period of five to six days, tankers will be able to get supplies from it," Abdel Karim Luaibi told a news conference. The four other terminals, fed by 60-kilometer-long (37 miles) pipelines from the coastal town of Fao, near the port city of Basra, are expected to become operational by the end of 2013.

Iraq aims to export 5 million bpd in 2014, according to Iraq Oil Forum editor Ruba Husari. The country's output is currently 2.9 million bpd, out of which it exports between 1.6 and 1.7 million bpd. "After setting this system in motion we will be able to increase production of our oil fields," currently constrained due to limited exporting capacity, added the minister.

The program, which is being co-financed by international partners, has cost US$1.5 billion (1.17 billion euros) to date. "The ministry has prepared a plan to increased production capacity to 3.4 million bpd and raise exports to 2.6 million bpd in 2012," Luaibi said. Oil exports account for more than 90% of Iraq's government income two-thirds of gross domestic product.