* Exports had been scheduled to start Jan. 1
* Pipeline inspections not yet completed
* New moorings to boost export capacity by 2.7 million bpd
By Ahmed Rasheed
BAGHDAD, Jan 3 Iraq plans to start
shipping crude from the first of its three new offshore export
terminals in the Gulf at the start of February, a move that will
boost its export capacity by 900,000 barrels per day, oil
Increasing export capacity is a cornerstone of Iraq's
ambitious plans to revive its oil industry after years of war,
economic sanctions and neglect, and jump into the top ranks of
global producers and exporters.
Iraqi officials had expected to open the tap at the first of
three new single-point moorings (SPMs) on Jan. 1 but testing of
new export pipelines has not been completed.
Consultation between the oil ministry, the South Oil Company
and project manager Foster Wheeler last week produced
the new schedule, officials said.
"The final work of checking the new export pipelines and
other export facilities linked to the first floating terminal is
expected to be finished by the end of this month," Oil Ministry
spokesman Asim Jihad said.
Iraq's $1.3 billion export expansion project in the Gulf
includes the construction of two undersea pipelines and one
onshore pipeline, as well as four single-point moorings for
An engineer on the South Oil Company's export expansion
project said the construction of the twin 60-km pipelines that
will carry crude to the SPMs from shore had been completed but
at least two more weeks were needed to finish testing them.
"We were supposed to finish work on the project earlier but
we needed more time to do final checks for any possible leaks
and to complete the installation of pipeline valves," the
engineer told Reuters on condition of anonymity.
"We will definitely be ready to start exports at the first
single-point mooring by the end of this month," he said.
The other two moorings will be installed by the end of the
year, he said.
Iraq's current export infrastructure is outdated and lacks
the capacity to handle the expected large increases in
production from its southern oilfields.
The Baghdad government has awarded a series of massive
development contracts to foreign majors such as Shell, Exxon
Mobil and BP, targeting output capacity of 12 million bpd by
2017. However, most analysts see 6 million to 7 million bpd as a
more realistic goal.
Iraq is currently producing close to 3 million bpd while
exports averaged 2.165 million bpd last year, according to the
State Oil Market Organisation.
Exports are expected to average 2.5 million bpd this
Bringing the first three SPMs on line would boost Iraq's
export capacity in the Gulf by 2.7 million bpd, more than
doubling Basra's current capacity. Its two current Gulf
terminals can handle around 1.7 million bpd.
Iraq also has plans in place to build a third Gulf pipeline
and a fourth SPM, while a fifth SPM is on its wish
(Additional reporting by Aref Mohammed in Basra; editing by Jim