.Iraq says oil exports at high as army guards pipe
ABU DHABI, July 4 (Reuters) - Iraq is exporting up to 1.9 million barrels per day of crude oil, its highest level since the war, after the army took over security of the vital northern pipeline to Turkey, the oil minister said on Tuesday.
"Crude oil exports from Turkey's Ceyhan terminal have begun and the oil ministry has repaired the pipeline and is providing round-the-clock security through the Iraqi army," Hussain al-Shahristani told reporters in Abu Dhabi.
"Iraq's production now stands at 2.5 million bpd and exports now range between 1.8 and 1.9 million bpd," he added.
The pipeline's security had previously been assigned to a special force, distinct from the army and police, and frequent attacks continued to devastate oil infrastructure in the northern area surrounding the giant Kirkuk oilfields.
The sabotage-plagued line had been mostly idle since the 2003 U.S.-led invasion and Iraq had been relying almost solely on southern exports of Basra Light crude, sales from which are running at about 1.5 million bpd.
The minister did not say when the army had taken on the security role.
Exports in June rose to their highest level since October 2004 as crude from Iraq's giant Kirkuk oilfields began flowing to Ceyhan port after a break of almost a year, shippers said.
State oil marketer SOMO is aiming to secure long term supply deals as it grows more confident that it can maintain the flow of Kirkuk crude. Oil sales provide revenue to rebuild the economy and oil sector after years of sanctions and war.
Shahristani said he expected Iraq's oil production capacity to hit 4.3 million bpd within the next four years and to reach between 6 million and 8 million bpd by 2015.
Since the invasion, output had been stuck at 2 million bpd, with exports of 1.5 million bpd, compared with pre-war output of just under 3 million bpd and exports of around 2 million.
"Only 80 fields are now being utilised out of a total of 500 oil and gas fields," Shahristani said. "When all these fields are exploited, Iraq will have the world's biggest oil reserves."
He also said Iraq's new government would provide adequate supplies of refined products to the domestic market and end the smuggling of products to neighbouring countries.
Iraq has eight refineries, none of which were damaged during the invasion, but they are operating at only 50-75 percent of capacity, forcing Baghdad to import most of its fuel.
The oil minister is accompanying Iraqi Prime Minister Nuri al-Maliki on a tour of some Gulf states which has already taken him to Saudi Arabia. The delegation is expected to visit Kuwait after the United Arab Emirates.
Reuters
"Crude oil exports from Turkey's Ceyhan terminal have begun and the oil ministry has repaired the pipeline and is providing round-the-clock security through the Iraqi army," Hussain al-Shahristani told reporters in Abu Dhabi.
"Iraq's production now stands at 2.5 million bpd and exports now range between 1.8 and 1.9 million bpd," he added.
The pipeline's security had previously been assigned to a special force, distinct from the army and police, and frequent attacks continued to devastate oil infrastructure in the northern area surrounding the giant Kirkuk oilfields.
The sabotage-plagued line had been mostly idle since the 2003 U.S.-led invasion and Iraq had been relying almost solely on southern exports of Basra Light crude, sales from which are running at about 1.5 million bpd.
The minister did not say when the army had taken on the security role.
Exports in June rose to their highest level since October 2004 as crude from Iraq's giant Kirkuk oilfields began flowing to Ceyhan port after a break of almost a year, shippers said.
State oil marketer SOMO is aiming to secure long term supply deals as it grows more confident that it can maintain the flow of Kirkuk crude. Oil sales provide revenue to rebuild the economy and oil sector after years of sanctions and war.
Shahristani said he expected Iraq's oil production capacity to hit 4.3 million bpd within the next four years and to reach between 6 million and 8 million bpd by 2015.
Since the invasion, output had been stuck at 2 million bpd, with exports of 1.5 million bpd, compared with pre-war output of just under 3 million bpd and exports of around 2 million.
"Only 80 fields are now being utilised out of a total of 500 oil and gas fields," Shahristani said. "When all these fields are exploited, Iraq will have the world's biggest oil reserves."
He also said Iraq's new government would provide adequate supplies of refined products to the domestic market and end the smuggling of products to neighbouring countries.
Iraq has eight refineries, none of which were damaged during the invasion, but they are operating at only 50-75 percent of capacity, forcing Baghdad to import most of its fuel.
The oil minister is accompanying Iraqi Prime Minister Nuri al-Maliki on a tour of some Gulf states which has already taken him to Saudi Arabia. The delegation is expected to visit Kuwait after the United Arab Emirates.
Reuters
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