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Iraq will be able to raise its oil export capacity from southern terminals by 900,000 barrels a day when a new single point moorings, or SPM, is tested in a few days time, the country's oil minister said Wednesday, according to London Stock Exchange.
Luaiby said that the new floating terminal would increase Iraq's export capacity from southern oil fields to 2.7 million barrels a day.
Iraq has had to reduce its production from southern oil fields in recent months because it hasn't had enough export capacity. Operating the new SPM means Iraq would be able to increase its export from the southern oil field to reach some 2.2 million barrels a day this year from the current 1.8 million barrels a day.
Exports from northern Kirkuk crude are expected to remain steady at around 400,000 barrels a day, meaning Iraq's total export target this year would reach 2.6 million barrels a day, from roughly 2.2 million barrels a day last year.
Iraq is aiming to raise its production to 3.4 million barrels a day this year, Luaiby said. Iraq's current output stood at 2.9 million barrels a day. The increase in output would come from southern oil fields.
Iraq has signed some 11 oil deals with international oil companies over the last three years with the aim of bringing its output to at least 8 million barrels a day late this decade.
Iraq's South Oil Co., the largest state oil entity, along with international firms, has started since last year to dig sub-sea trenches to extend three new pipelines that would pump crude from new storage tanks in Iraq's southernmost Faw peninsula to five new SPMs in the Gulf.
The five SPMs and three pipelines were awarded to Leighton Offshore Private Ltd.--part of Leighton International. Italy's Saipem SpA was also awarded a project to build A control and measuring system in the sea. The total cost of the project is around $1.4 billion, Iraqi officials said.
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Luaiby said that the new floating terminal would increase Iraq's export capacity from southern oil fields to 2.7 million barrels a day.
Iraq has had to reduce its production from southern oil fields in recent months because it hasn't had enough export capacity. Operating the new SPM means Iraq would be able to increase its export from the southern oil field to reach some 2.2 million barrels a day this year from the current 1.8 million barrels a day.
Exports from northern Kirkuk crude are expected to remain steady at around 400,000 barrels a day, meaning Iraq's total export target this year would reach 2.6 million barrels a day, from roughly 2.2 million barrels a day last year.
Iraq is aiming to raise its production to 3.4 million barrels a day this year, Luaiby said. Iraq's current output stood at 2.9 million barrels a day. The increase in output would come from southern oil fields.
Iraq has signed some 11 oil deals with international oil companies over the last three years with the aim of bringing its output to at least 8 million barrels a day late this decade.
Iraq's South Oil Co., the largest state oil entity, along with international firms, has started since last year to dig sub-sea trenches to extend three new pipelines that would pump crude from new storage tanks in Iraq's southernmost Faw peninsula to five new SPMs in the Gulf.
The five SPMs and three pipelines were awarded to Leighton Offshore Private Ltd.--part of Leighton International. Italy's Saipem SpA was also awarded a project to build A control and measuring system in the sea. The total cost of the project is around $1.4 billion, Iraqi officials said.
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