Iraq crude exports climb to 12-month high on stable conditions

Iraq crude exports climb to 12-month high on stable conditions

Dubai (Platts)--3May2006

Iraq's average crude export level climbed to 1.619 million b/d as good
weather and tanker availability allowed for a steady flow of crude from the
Basra and Khor Al-Amaya oil terminals, industry and shipping agents said
Wednesday.

The export figure represents the highest level for total exports over the
last 12 months and the second highest level for southern exports since the
US-led coalition toppled Saddam Hussein in March 2003.

In March 2004, southern exports climbed as high as 1.624 million b/d
while total exports, including Kirkuk pumping to Ceyhan, hit 1.83 million b/d,
ministry figures showed.

Over the last two months, the highest crude export level was 1.61 million
b/d in September 2005.

"Well, last month, exports were above 1.6 million b/d, which is a record
since a long time again." an oil industry source said. "They were lucky
because they had a continuous availability of tankers. There was no bad
weather."

Iraq's southern crude exports have regularly been disrupted by rough
weather conditions, leading to loading delays and demurrage costs for the
State Oil Marketing Organization.

SOMO has rolled over from month to month crude oil term-contracts because
of the delays caused by poor weather conditions.

"Only a few ships have crossed over into May," the shipping source said.
"There should be one or two ships crossing over. We are hoping that it will be
the same this month."

In the north, Iraq was able to pump around 200,000 barrels of crude to
Ceyhan, bringing storage levels to two million barrels, a Ceyhan-based
shipping agent said. "There is about 2 million barrels," the agent said.
"There is not enough even for a tender."

Ali Hashem al-Hashemi said in Doha April 21 that Iraq targeted oil
production of 2.5 million b/d by the end of the year from around 2.1 million
b/d currently and exports of 2-million b/d.

He also told reporters that Iraq hoped to resume exports form the north
within weeks after implementing new security measures around pipelines.
Insurgent attacks against the northern pipeline system since the end of the
US-led war of March 2003, preventing regular exports of Kirkuk crude through
the Turkish port of Ceyhan.

But industry sources have cast doubt on the ministry's plans to resume
exports to Ceyhan, pointing to the ongoing attacks against the pipeline
network and the insurgency.

"I would not talk about that for the foreseeable future," the industry
source said.

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