Amman (Platts)--9Apr2008

The substantial increase in the average daily production rate from Iraq's
northern oilfields, including the giant Kirkuk field, climbed to a post-war
high of 619,000 b/d in March, up 180,000 b/d from the previous month, Iraqi
ministry of oil figures obtained by Platts showed.
The figure is the highest level achieved since the end of the US-led war
of March 2003 but still substantially below the pre-war average of 870,000
b/d.
Production from northern fields has been climbing steadily since
September 2007, when attacks against the northern pipeline export system
subsided and Iraq was able to export larger volumes of Kirkuk crude through
the Turkish port of Ceyhan.
However, Iraq's total production from northern and southern fields fell
because of a decline in production from the south.
The official figures also showed that production from southern fields
fell to 1.796 million b/d in March from 1.905 million b/d during February.
This fall is attributed to the two-day shutdown of southern fields as a
precautionary measure after a sabotage attack on one of the transportation
lines March 25 during fighting in the port city of Basra between Iraqi
government forces and Shi'ite Muslim militias. It is also due to the stoppage
of production at the 100,000 Meissan oil field due the attack and technical
faults in the main pumping station.
That makes total Iraqi production in March 2.415 million b/d, down
from 2.506 million b/d in February.
The March figures showed that Iraq exported 1.918 million b/d, down from
1.936 million b/d in February.
Exports from the north averaged 320,000 b/d in March, 74,000 b/d lower
than February, and 1.598 million b/d from southern Gulf terminals, 56,000 b/d
higher than in February.
Exports from Ceyhan totaled 9.926 million barrels in March, lifted by 13
crude oil tankers; and 49.54 million barrels were loaded on to 34 tankers from
the southern terminals.
Internal supply rates to local refineries and power stations during March
totaled 447,000 b/d in March, compared with 505,000 b/d in February. Northern
fields supplied 214,000 b/d in March, down from 222,000 b/d in February; and
the southern fields supplied 233,000 b/d, down from 283,000 b/d in February.
The rise in supply from southern fields came despite the continued
shutdown of a 70,000 b/d processing line at the Basra refinery following a
fire in January.
The unaccounted for oil in the south during March, obtained by
subtracting total export and internal rates from total production and
adjusting for the decrease in domestic stock levels, was calculated by Platts
to be zero, with the figures balanced for the first time in months.
The presence of thousands of barrels of unaccounted for oil in previous
months fueled accusations and allegations of widespread corruption and
smuggling within the Iraqi oil industry and have been the subject of numerous
reports by various Iraqi and US monitoring agencies and news reports.
--Faleh al-Khayat, newsdesk@platts.com