A “setback” in the export of Iraqi oil because of the old pumps
The second largest oil producer in the Organization of the Petroleum Exporting Countries aims to increase Basra's operating export capacity to 3.45 million barrels per day from 3.3 million barrels per day.
The delay means he could miss out on an additional 150,000 barrels of oil exports in the third quarter.
Although this is a relatively small level, the setback comes at a time of tight global oil supply, limited spare capacity from other OPEC+ producers, and little room to offset a major supply disruption.
Reuters reported, quoting an Iraqi oil representative, as saying that the delay in its original plan stems from a delay in obtaining the necessary approvals and in finalizing bids for modernization work.
The state-owned Basra Oil Company had planned to install new pumping stations in the Iraqi Gulf ports to reach an export capacity of 3.45 million barrels per day in the second quarter.
The Basra Oil Company now expects southern export capacity to increase to 3.35 million bpd in August and reach 3.45 million bpd by September.
"I am not sure if the Basra Oil Company can meet this deadline due to the delay in the pumping stations project," the source said, noting that without the upgrade work, Iraq's exports could remain at around 3.3 million barrels per day.
Iraq's crude oil exports from Basra averaged 3.27 million barrels per day in June and 3.24 million barrels per day in the second quarter, according to the Iraqi State Oil Marketing Organization (SOMO).
The limited export capacity may strain Iraq's ability to increase production at an accelerated pace, as the country's storage options are few.
Government figures show that the country's crude oil production has risen largely in line with its quota under the OPEC+ agreement among oil-producing countries, but its stocks have also increased every month this year.
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