Iraqi Navy takes over security for coastal areas, oil terminals

Dubai (Platts)--7Oct2004

Iraq's navy has started to protect the country's territorial waters and oil
terminals after the US Navy handed over limited responsibilities, a US-led
coalition spokesman said from Basra Thursday."They were fully operational from
Oct 1," the spokesman said. "They will have support from the US/UK fleets to
help protect the oil platforms." The handover ceremony took place at the Iraqi
port of Umm Qasr, located near Basra. The Iraqi naval forces will mainly
protect the coastal areas and the Basra and Khor al-Amaya oil terminals, the
spokesman said. "They are limited from going out in to the Gulf," the
spokesman added, because of the size and capacity of their fleet. The
360-member Iraqi Navy has around 15 speed boats equipped with light machine
guns and seven larger vessels. Port and shipping agents are watching how the
Iraqi navy protects the oil terminals. "We are waiting to see what kind of job
they do protecting the terminals," a port agent said. "Security has been
improved since the April attacks."

Iraq's southern exports were halted in April 2004 after an unprecedented three
suicide boat attacks against the terminals. The US Navy, at the time
responsible for protecting the terminals, tried to intercept one of three
boats heading for the terminals. Meanwhile, Iraq's southern exports have
increased to some 80,000 bbl/hour, or about 1.92-mil b/d Thursday, hitting
sustained levels not seen since April 2004, port agents said. "The flow rate
is 80,000 bbl/hour, plus or minus 5,000 bbl," a port agent said. "We have not
seen this level since the April attacks." In April, Iraq exported almost all
of its crude from the two southern terminals as it struggled to protect the
key 900,000 b/d capacity export pipeline. Iraq has successfully started to
move Kirkuk crude north to the Turkish Mediterranean port of Ceyhan at a
current level of some 200,000 b/d.

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