Iraq's southern crude export loadings remain at 40,000 bbl/hour

Iraq's southern crude export loadings remain at 40,000 bbl/hour

Dubai (Platts)--16Aug2004


Iraq's southern crude export loading rates continued at 40,000 bbl/hour, or
960,000 b/d, after being halved following threats made by Medhi Army against
South Oil Co facilities, an Iraqi oil official and port agent said Monday.
"The crude flow rate is still at 40,000 bbl/hour," the port agent said. "There
has also been no information provided on when the flow rate will increase back
to normal levels." 

The port agent with offices in Basra said the SOC has also provided no
information on when the 48-inch pipeline running from oilfields to crude
storage tanks would become operational again. "Crude is moving through one of
42-inch pipeline," the official added. After the Medhi Army threats, Iraq has
been able to move crude through only its 42-inch pipeline to storage tanks,
forcing Iraq to draw on stocks to meet its export commitments. Stocks were
reported at 3.5-mil bbl last week. Prior to the threats, Iraq had exported an
average of 1.57-mil b/d from the Persian Gulf Basra and Khor al-Amaya loading
terminals.

In the latest developments, militiamen loyal to radical Iraqi Shi'ite leader
Moqtada Sadr have set fire to an oilfield in Amara in southern Iraq as
fighting continued in Baghdad, the office of the interim prime minister said
in a statement. The attack occurred at the Buzurgan oilfield located along the
Iranian border, the oil official said. "It produces a heavy crude we mix with
Basrah Light for export from the south," the official said without providing
details on the total production of the oilfield. 

The Buzurgan field produces crude with a 26 API. Amara has witnessed clashes
between the Medhi Army and British troops. Before the US-led war which ousted
Saddam Hussein, PetroVietnam had won a contract to develop the small Amara
oilfield. Meanwhile, clashes between US forces and the Medhi Army continued in
the Shiite stronghold of Sadr City in Baghdad, located east of the State Oil
Marketing Organization and the oil ministry building.

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