Wed. Apr 17th, 2024

Iraq is set to bolster its crude oil export capabilities from southern ports with the construction of a new marine pipeline, boasting a capacity of two million barrels and a price tag exceeding $416 million.

Basem Abdul-Karim, Director General of the Basra Oil Company (BOC), disclosed to the government publication Al-Sabah on Sunday the country’s intentions to erect this strategic pipeline, marking the third of its kind within Iraqi ports in the Basra governorate. The initiative aims to fortify Iraq’s position in the global oil market by facilitating enhanced export capabilities.

The Oil Ministry is presently engaged in negotiations with the Dutch firm Boskalis to finalize the contractual arrangements for the execution of this pivotal project, spanning from Al-Faw warehouses to Al-Faw Port in Basra. This move underscores Iraq’s commitment to expanding and modernizing its infrastructure to accommodate the escalating demands of the oil sector.

Abdul-Karim emphasized that the forthcoming pipeline is slated to significantly amplify the export capacity of the port of Basra and the Al-Faw oil depots, with a targeted output of five million barrels per day anticipated by the culmination of 2025. This ambitious endeavor aligns with Iraq’s strategic vision to optimize its oil resources and elevate its prominence as a key player in the global energy landscape.

Furthermore, the Iraqi official elucidated that current crude oil export rates from southern ports remain steadfast, capped at 3.4 million barrels per day. This consistent output is attributed to the collaborative efforts of oil companies operating in the governorates of Basra, Maysan, and Dhi Qar.

The Basra governorate alone boasts crude oil production levels reaching 3.25 million barrels per day, underscoring the region’s pivotal role in Iraq’s oil economy. As the nation embarks on this transformative venture, stakeholders anticipate a paradigm shift in Iraq’s oil export dynamics, poised to bolster economic growth and reinforce its standing as a formidable force in the global energy arena.

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