Iraq's offshore oil export pipelines are vulnerable to environmental disaster

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[size=52]Iraq's offshore oil export pipelines are vulnerable to environmental disaster[/size]

[size=45]Iraq's crude oil production has stagnated in recent months, despite a quota increase under the OPEC+ agreement, which is largely constrained by its inability to export more volumes through its southern port on the Persian Gulf.[/size]
[size=45]According to S&P Global Commodity Insights, near-term prospects for increased loading volumes at its old Gulf facility in Basra are bleak, Iraqi officials acknowledge, preventing any meaningful production gains that would allow the struggling country Financial distress by taking advantage of high oil prices.[/size]
[size=45]The deteriorating pipelines connecting the terminal to the loading docks pose a significant risk of catastrophic environmental disaster.[/size]
[size=45]Iraq produced 4.38 million barrels per day of crude oil in June, including from the Kurdistan Region, slightly higher than the March production level of 4.34 million barrels per day.[/size]
[size=45]Also, production did not keep pace with Iraq's share, which rose from 4.37 million barrels per day in March to 4.509 million barrels per day in June and is scheduled to increase to 4.651 million barrels per day in August.[/size]
[size=45]Figures indicate that until the restoration of southern Iraq's exports to this April 2020 level will still require the country to keep production below its quota in OPEC +, as storage facilities in Basra are full, and local refineries and power stations are limited in what they can consume, port data showed. Crude oil stocks in the southern reservoirs have reached about 6.8 million barrels, about 72% of their total capacity of 9.5 million barrels.[/size]
[size=45]Flows in the port of Basra are hindered by the deterioration of two marine lines feeding the berths from the station, and sources familiar with the matter said that bulges have appeared at the end of these lines in recent months, and are feared that they will explode and cause a major oil spill into the Gulf.[/size]
[size=45]This has forced the Basra Oil Company to cut berth pumping rates by more than 25%, to about 54,000 b/h from previous levels of 70,000 b/h.[/size]
[size=45]The cruise lines were built in the late 1970s and were due to be replaced decades ago, but were never implemented due to funding problems, political turmoil and other delays.[/size]
[size=45]Iraqi officials aim to increase southern export capacity to 3.35 million barrels per day by September, said the deputy director of the state oil marketing company SOMO.[/size]
[size=45]“At the moment, this is what we believe we can achieve, taking into account not only the restrictions on export capacity, but also rehabilitation activities that may sometimes cause halts,” Ali Al Shatari said.[/size]
[size=45]"That number could go up, of course, but I'm a bit conservative until I see plans to develop export facilities move forward."[/size]
[size=45]Of this volume, SOMO expects Basra Heavy to average 1.1 million bpd in July and Basra Medium, 2.2 million bpd, Shatari said.[/size]
[size=45]The current high price environment represents an opportunity for Iraq to raise the necessary funding to replace its aging sea lines, which will likely take about two years to complete from the signing of the contract.[/size]
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