Economic Update – Baghdad
The Basra Oil Company is on the verge of initiating significant projects aimed at enhancing the country’s energy export capacity, with plans to increase exports through Basra’s oil terminals to 4.5 million barrels.
Bassem Abdel Karim, the Director General of Basra Oil Company, highlighted in a recent statement that “major initiatives are currently under consideration that will bolster the country’s export capabilities via Basra oil ports, targeting an export goal exceeding 4.5 million barrels within the next three years.” He noted that “the current export rate from the Basra fields, along with those from Maysan and Dhi Qar, has reached approximately 3.3 million barrels per day as of February through the Basra oil ports, while also catering to domestic oil demand and refinery requirements.”
Moreover, he indicated that “the announcement of the winning contractor for the third marine pipeline project, with a capacity of 2.2 million barrels per day, is imminent,” and expressed anticipation for “project completion within two years, aligning with the specified contractual timelines after necessary approvals have been secured, to enhance Basra’s crude oil delivery capabilities, alongside the creek of the blind for an extended duration.”
Abdel Karim further elaborated on the “urgent preparations to initiate the construction of the fourth and fifth marine pipelines to compensate for the aging first and second pipelines, which are still operational and servicing the Basra port and its four offshore platforms.” He explained that “the third pipeline will extend from the FAO oil storage facilities beneath our waters to the ports and oil platforms located in our territorial waters in the Gulf.”
In line with these developments, Abdel Karim emphasized the federal government’s efforts to establish a major industrial zone within its territorial waters, which will position Iraq favorably among oil and gas-producing nations. Additionally, this initiative aims to expand fishing zones in international waters and integrate a vast marine pipeline infrastructure linked to the FAO storage facilities.”
Regarding the utilization of associated gas, Abdel Karim noted that “significant progress has been made in the accelerated project at the Artawi field, with the expectation of extracting over 50 million cubic feet of associated gas by the end of 2025.” This output is aimed at fulfilling the energy requirements of gas power generation stations and reducing the flaring of associated gas. He highlighted that “the development of the Artawi field and the gas integration project includes the establishment of a water treatment facility in Khor Al-Zubair, utilizing seawater with a capacity of 5 million cubic meters to be pumped into oil-producing fields in the southern governorates instead of relying on river water and fresh marshes. The contracts for the treated water pumping and transportation pipeline system, along with the construction of the station, are expected to be finalized by the end of this March.”
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