Iraq Crude Oil Production - Overtaking Iran

Iraq Crude Oil

By Grant Smith

Iraq overtook Iran in 2012 to become the second-largest producer in the Organization of Petroleum Exporting Countries. It would need to produce about another 6 million barrels a day to top Saudi Arabia.

Iraq is seeking to overcome the constraints on exports, Ghadhban, the prime minister’s adviser, said in an interview in Dubai. That includes adding a third mooring point at the southern Basra oil terminal by July, which will increase capacity by 900,000 barrels daily, he said. Companies have been shortlisted to build a pipeline to Jordan’s Aqaba port, the government said in April. Another link crossing Iraq from north to south is under construction, providing an alternative route for crude from northern fields.

Iraqi crude is still sought after because the country is offering 60-day credit terms, compared with the 30 days typically available from Middle Eastern suppliers, according to Namdeo of Hindustan Petroleum. (HPCL) The refiner is increasing purchases by 8 percent this year to 3.25 million metric tons.

Credit: Bloomberg.net