US agency: Weak deterioration of Basra port docks weakens oil revenues

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[size=52]US agency: Weak deterioration of Basra port docks weakens oil revenues[/size]

[size=45]Translation: Hamed Ahmed[/size]
[size=45]A US agency reported that the weak carrying capacity of the Basra Port's loading docks and the deterioration of pipelines prevent Iraq from earning more money by exporting oil in conjunction with the increase in its prices, and bulges that appeared in recent months at the ends of the lines revealed fears of their explosion and causing an environmental disaster at sea.[/size]
[size=45]A report by the US Energy Agency (Platts) quoted Iraqi officials as saying that "the chances of increasing the quantities of crude oil pumped into the facilities of platforms loading platforms at the port of Basra in the near term appear bleak."[/size]
[size=45]The report added, "This prevents any benefit gained for the country from increasing production amid the escalation of oil prices."[/size]
[size=45]He pointed out, "The old, dilapidated pumping pipes that connect the station and the loading docks pose a great risk of an environmental disaster."[/size]
[size=45]The report confirmed, “The (Platts) agency index of the movement of goods in the global market and the quantities of oil shipments from the oil-producing member countries of the Organization of the Petroleum Exporting Countries, showed that the quantities of crude oil produced by Iraq in the month of June amounted to an average of 4.38 million barrels per day, including the quantities of oil produced from fields Kurdistan Region”.[/size]
[size=45]He pointed out, "This quantity is slightly more than the quantities of oil produced for the month of March, which amounted to 4.34 million barrels per day."[/size]
[size=45]The report stressed that "the southern port of Iraq for the export of oil was often seen as a narrow and obstructive outlet that is not commensurate with the large quantities of crude oil that the country produces." And he reported, "The information of the Iraqi Oil Ministry confirmed that oil exports from Basra port for the period from March to June amounted to an average of 3.231 million barrels per day."[/size]
[size=45]The report noted, "This quantity is almost equal to the oil export rates for April 2020, which amounted to 3.351 million barrels per day, when (OPEC) and its allies abandoned the ceilings of production quotas for a limited period due to a disagreement over the production strategy amid the outbreak of the Corona pandemic and allowing producing countries to pump the amount that they you want it.” And he went on to say that "the flow of oil at the port of Basra is being hindered due to the poor condition of two marine lines feeding the pumping docks at the station."[/size]
[size=45]In addition, sources familiar with the situation said, "Swellings have appeared in recent months at the ends of these lines, and there are fears that they may explode and cause an environmental disaster by spilling oil into the sea."[/size]
[size=45]The report continues, “The data of the agency (Platts) indicator of the daily movement of freight says that this matter forced the Basra Oil Company to reduce the pumping rates of the loading docks by 25%, i.e. at a rate of 54,000 barrels per hour, compared to the previous pumping rates, which were around 70,000 barrels per hour.” .[/size]
[size=45]And he added, "The marine pumping pipelines were installed in the late 1970s and were hoping to be replaced decades ago, despite that, no replacement or maintenance work was carried out due to financing and political problems, as well as other obstacles."[/size]
[size=45]The report spoke of “the addition of four mono-berths to support and supplement these marine lines, which increased the flow of oil in them, compensating for the decline in the pumping stations by a small percentage.”[/size]
[size=45]For his part, the deputy director of SOMO Oil Marketing Company, Ali Al-Shatri, says, "Iraqi officials hope that the oil export capacity from the Basra port will reach 3.35 million barrels per day by September."[/size]
[size=45]Al-Shatri added, "With regard to the present time, taking into account not only the limitations of export capacity but also the activities of rehabilitation operations that may cause interruptions at times, this is what we expect that we can achieve."[/size]
[size=45]Al-Shatri indicated, "The possibility of achieving a higher number than that, but I have some reservations about this possibility until I see plans to develop export facilities in full swing."[/size]
[size=45]Al-Shatti added that "SOMO expects that the quantity of shipments of the Basra Heavy crude category will be 1.1 million barrels per day in July, and Basra Medium crude will be 2.2 million barrels per day."[/size]
[size=45]The report stated, "The analyzes of the agency (Platts) indicate that the quantities of exported oil will be limited at that maximum rate for the rest of the months of the year, with production quantities remaining at 4.54 million barrels per day."[/size]
[size=45]He pointed out, "There are fears of low quantities of equipment resulting from maintenance and rehabilitation work for pumping facilities or for reasons related to security and political instability."[/size]
[size=45]The report continues, "The current environment of high oil prices is an opportunity for Iraq to ensure the allocation of funds required to replace dilapidated marine shipping pipes, which may take two years to replace from the date of signing the contract, according to people who studied the project to develop and rehabilitate the pumping station."[/size]
[size=45]And the report went on, "This would increase the capacity of the Basra port terminal for export by 700 thousand to two million barrels per day, in addition to 4 single berths for loading with a capacity of 2.2 million barrels per day."[/size]
[size=45]For: Platts Agency[/size]
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