Iraq, OPEC's second-largest oil producer, will be able to boost exports by as much as 250,000 barrels per day (bpd) from the second quarter after finishing the installation of pumping stations at its Gulf ports, an Iraqi oil source said.
The upgrade work explains why Iraq, which had long pumped above its OPEC production quota, has improved compliance with output targets over the past year, the source said. Upgrades would have prevented the country from pumping larger volumes.
Iraq's State Oil Marketing Organisation (SOMO) had exported as much as 3.7 million bpd from its southern ports in Basra, but the need to rehabilitate aging export infrastructure forced Iraq to reduce southern exports when upgrade work began from May 2020.
The pandemic-driven slump in oil prices and tight Iraqi regulations resulted in delays to the projects, which were run by state-owned Basra Oil Co (BOC).
Work to install new pumping stations to boost export capacity from Basra took place for most of 2021, said an Iraqi oil ministry source.
Their start-up will increase Basra's operational crude export capacity to 3.40 million-3.45 million bpd from 3.20 million bpd currently, with a target date of the second quarter, the source said.
