Iraq to Boost Oil Export Capacity to Grab Bigger Share of Asian Market
From The Daily Star
By Meeyoung Cho, Jane Chung
Iraq is set to boost its oil export capacity significantly by the end of the first quarter next year, stepping up competition with top exporter Saudi Arabia to grab a bigger share of the growing Asian market.
Iraq is wooing Asian customers by offering easier payment terms to secure buyers as it ramps up oil output after years of war, but inadequate infrastructure and security issues this year have hampered the Middle Eastern nations’ efforts to maintain steady output and exports.
The country is planning to raise its total export capacity to 4 million barrels per day (bpd), deputy prime minister for energy Hussain Al-Shahristani said on Wednesday.
“In total, we will be having capacity of 4 million barrels (per day) next year,” he said on the sidelines of the World Energy Congress in South Korea. “By the end of the first quarter we should have them.”
Iraq’s current oil output is now back up to 3.3 million bpd of crude, and may touch 3.5 million bpd by year-end. The Middle Eastern nation is exporting 2.5 million bpd of its output, with 60 percent going to Asia, 20 percent to the American market and the rest to Europe, he said.
But Iraq may not use the country’s export capacity to its full potential and may instead work on upgrading some of the older export facilities, the minister said.
By posting your comment, you agree to abide by our Posting rules