Iraq prepares to establish third offshore oil export pipeline, 11 MARCH

Iraq prepares to establish third offshore oil export pipeline

 Economy News _ Baghdad

The Oil Ministry plans to spend more than $416 million to implement the third offshore export pipeline project with a total capacity of 2 million barrels per day, at a time when the average export of crude through the Faw port has reached the range of three million and 400 thousand barrels per day.
The Director General of Basra Oil Company in the name of Abdul Karim Al-Shamkhani, said in an interview with Al-Sabah, followed by “Economy News”, that the Ministry of Oil intends to spend $416.9 million during the year 2024 – 2025 for the project of establishing the third offshore export pipeline, which has an operating capacity of two million barrels per day to export oil from FAO warehouses to the Faw oil port.

He explained that the company is in the process of contracting with the Dutch company Royal Boscales after finalizing the contract for the construction of the oil line, whose importance is to strengthen the export infrastructure, as it is able to increase the capacity of the crude oil pipeline between the Faw depots to the oil platforms and the Basra oil port at the end of 2025 to 5 million standard daily barrels.

 Al-Shamkhani pointed out that the company’s production capacity is three million and 250 thousand barrels per day, as the Rumaila field stands at the forefront of the fields currently produced with a capacity of one million and 400 thousand barrels per day.

He pointed out that the maximum level of production capacity is determined by the state, noting that the current rate of export capacity through the (Faw) oil port of international markets is about three million and 400 thousand barrels, and this amount represents the production of the companies of Basra, Maysan and Dhi Qar.

He pointed out that the oil companies of Basra, Maysan and Dhi Qar have reserve production capacities for crude, which represent the rate of difference between the maximum energy and their current production, explaining that reserve production has a greater role by covering expected increases in energy consumption in the country. Al-Shamkhani stressed that the company is committed to the voluntary oil reduction decided by the OPEC+ alliance as part of the precautionary efforts to support the stability and balance of oil markets.
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