Iraq Eyes Higher Crude Exports Through Pipelines, Syria Route

Iraq’s cabinet approved a plan to raise crude pipeline exports to 770,000 bpd while expanding tanker truck shipments and opening new export handling routes through Syria’s Mediterranean ports.

(P&GJ) — Iraq’s Council of Ministers has approved recommendations from the country’s Oil Ministry aimed at expanding crude oil export capacity, including a plan to raise pipeline exports from 220,000 barrels per day to 770,000 barrels per day.

According to a cabinet statement published by the Iraqi News Agency, the expansion would be carried out in two phases over about two and a half months. The plan also calls for increasing crude exports by tanker truck to neighboring countries to 420,000 barrels per day in three phases.

The cabinet said the recommendations followed a May 20 meeting between the prime minister and senior Oil Ministry leadership. The Council of Ministers also granted Iraq’s oil minister additional financial and contracting authority tied to the export expansion plan.

The State Oil Marketing Organization, known as SOMO, was directed to begin contracting procedures for the additional crude volumes.

Iraq’s cabinet also approved Oil Ministry contracting with Syria for the transportation, storage and handling of Basra Light, Basra Medium and Basra Heavy crude through the Mediterranean ports of Baniyas and Tartus. The cabinet also approved opening an Oil Ministry representative office to manage export operations through that route.

The statement said the government is seeking to maximize crude export capacity as Iraq expands use of pipeline and regional export routes.