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Sinochem Corp to become one of Baghdad's top oil buyers in 2014
Published: 2013/11/9
Baghdad (Forat) -Sinochem Corp will become one of Baghdad's top oil buyers next year when the Chinese state company starts its first wholly-owned refinery, the latest example of Iraq beating Middle Eastern rivals in the competition for new market in Asia.
A report by Reuters reviwed by Alforat News Agency cited "Iraq's output has increased rapidly after years of unrest and China is the most important battleground for exporters looking for new market. China overtook the U.S. as the world's largest net oil importer in September and has driven global fuel demand growth for a decade."
"Iraq said China is seeking to increase purchases of its crude by more than two-thirds next year. To boost sales it has offered sweeter payment terms to buyers than competitors," the report added.
"Sinochem plans to use Iraqi crude for 40 percent of the capacity of the new refinery, replacing a preliminary agreement to use more expensive oil from Kuwait," Chinese traders said according to the report.
"Sinochem's 240,000-barrels-per-day Quanzhou plant on China's southeast coast is expected to process about 100,000 bpd of Iraqi crude after completing test runs due to start in December," the trading sources said.
"The volume will grow, and by not a small rate," said a trading official who was familiar with Sinopec's crude purchases but declined to give a more specific estimate.
"Iraq expects China to seek 70 percent more crude - or a total of 850,000 bpd - in 2014 versus current contract levels," Deputy Prime Minister for Energy Hussain al-Shahristani said earlier this month.
Total exports are now running about 2.5 million bpd, but in the first quarter of 2014 Iraq expects its export capacity to rise to 4 million bpd," Shahristani concluded.
It is worth mentioning that Iraq expects its oil output to hit 3.5 million bpd by the end of the year, as it counters infrastructure and security issues that have this year hampered its efforts to maintain steady output and exports. /End/
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Published: 2013/11/9
Baghdad (Forat) -Sinochem Corp will become one of Baghdad's top oil buyers next year when the Chinese state company starts its first wholly-owned refinery, the latest example of Iraq beating Middle Eastern rivals in the competition for new market in Asia.
A report by Reuters reviwed by Alforat News Agency cited "Iraq's output has increased rapidly after years of unrest and China is the most important battleground for exporters looking for new market. China overtook the U.S. as the world's largest net oil importer in September and has driven global fuel demand growth for a decade."
"Iraq said China is seeking to increase purchases of its crude by more than two-thirds next year. To boost sales it has offered sweeter payment terms to buyers than competitors," the report added.
"Sinochem plans to use Iraqi crude for 40 percent of the capacity of the new refinery, replacing a preliminary agreement to use more expensive oil from Kuwait," Chinese traders said according to the report.
"Sinochem's 240,000-barrels-per-day Quanzhou plant on China's southeast coast is expected to process about 100,000 bpd of Iraqi crude after completing test runs due to start in December," the trading sources said.
"The volume will grow, and by not a small rate," said a trading official who was familiar with Sinopec's crude purchases but declined to give a more specific estimate.
"Iraq expects China to seek 70 percent more crude - or a total of 850,000 bpd - in 2014 versus current contract levels," Deputy Prime Minister for Energy Hussain al-Shahristani said earlier this month.
Total exports are now running about 2.5 million bpd, but in the first quarter of 2014 Iraq expects its export capacity to rise to 4 million bpd," Shahristani concluded.
It is worth mentioning that Iraq expects its oil output to hit 3.5 million bpd by the end of the year, as it counters infrastructure and security issues that have this year hampered its efforts to maintain steady output and exports. /End/
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