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Iraq eyes record oil production, exports in 2016
LONDON
Iraq, the second-largest Opec producer, is hoping to raise oil output further next year and sell record volumes of oil to customers from its southern terminal, a senior Iraqi oil source said.
Iraq has seen higher-than-expected production growth over the past year adding to the global oil glut which worsened after Opec leader Saudi Arabia decided against output cuts to fight for market share with higher cost non-Opec producers.
"Production will rise next year. Not as steep as this year but it will rise. There will be no cut," the source, who asked not to be identified by name, said.
The plan is a further indication leading members of the Organization of the Petroleum Exporting Countries are not wavering in their pursuit of market share, rather than limiting supplies to support prices.
The source said 2016 exports from southern Iraq were currently planned at 3.0-3.2 million barrels per day including 2.2-2.4 million bpd of Basrah Light crude and 850,000 bpd of Basrah Heavy.
"Some 60 per cent will go to Asia as (state oil marketing firm) Somo has to serve its term customers. But for the first time in many years the European market looks more interesting than the Asian market. So Middle Eastern producers are looking to take that opportunity," the source said.
Southern shipments jumped in June after Iraq's decision to split the crude stream into two grades, Basra Heavy and Basra Light, to resolve quality issues. This has allowed some companies working at Iraqi oilfields to increase production.
If the upper end of the source's target for southern exports is reached, Iraq would beat its record high of 3.064 million bpd reached in July.
From Iraq's north, Somo and the Kurdistan Regional Government also export crude via Ceyhan in Turkey.
Northern exports have increased this year, reaching 600,463 bpd in September according to the Kurdistan region, despite tension between the KRG and Baghdad over the Kurds reducing allocations to Somo to boost independent sales.-Reuters
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LONDON
Iraq, the second-largest Opec producer, is hoping to raise oil output further next year and sell record volumes of oil to customers from its southern terminal, a senior Iraqi oil source said.
Iraq has seen higher-than-expected production growth over the past year adding to the global oil glut which worsened after Opec leader Saudi Arabia decided against output cuts to fight for market share with higher cost non-Opec producers.
"Production will rise next year. Not as steep as this year but it will rise. There will be no cut," the source, who asked not to be identified by name, said.
The plan is a further indication leading members of the Organization of the Petroleum Exporting Countries are not wavering in their pursuit of market share, rather than limiting supplies to support prices.
The source said 2016 exports from southern Iraq were currently planned at 3.0-3.2 million barrels per day including 2.2-2.4 million bpd of Basrah Light crude and 850,000 bpd of Basrah Heavy.
"Some 60 per cent will go to Asia as (state oil marketing firm) Somo has to serve its term customers. But for the first time in many years the European market looks more interesting than the Asian market. So Middle Eastern producers are looking to take that opportunity," the source said.
Southern shipments jumped in June after Iraq's decision to split the crude stream into two grades, Basra Heavy and Basra Light, to resolve quality issues. This has allowed some companies working at Iraqi oilfields to increase production.
If the upper end of the source's target for southern exports is reached, Iraq would beat its record high of 3.064 million bpd reached in July.
From Iraq's north, Somo and the Kurdistan Regional Government also export crude via Ceyhan in Turkey.
Northern exports have increased this year, reaching 600,463 bpd in September according to the Kurdistan region, despite tension between the KRG and Baghdad over the Kurds reducing allocations to Somo to boost independent sales.-Reuters
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