BAGHDAD: Iraq is studying the possibility of building crude oil storage facilities in South Korea and Japan as part of a plan to increase sales to Asian clients, the head of the Iraqi state-oil marketer SOMO, Alaa al-Yasiri, said yesterday.
“SOMO’s new strategy is to form trade arms in Asian markets to maximise profits and boost crude shipments to Asian markets,” he told reporters in Baghdad.
SOMO received offers from Exxon Mobil, Total, Japan’s Sumitomo and China’s Unipec, to take part in marketing Iraqi crude, he said.
“We are studying building crude storages in South Korea and also Japan and we’re also studying options to have partnership between SOMO and companies which are ready to help with building the storages,” Yasiri said.
Iraq plans to stop loading crude from its southern port of Basra for three to four days in early April due to maintenance, he said.
During the halt of loading operations at Basra port, Iraq will divert production to storage depots in south. Once the maintenance work is done, it will pump at maximum capacity to make up the shortfall.
Opec’s second-largest producer, after Saudi Arabia, Iraq exports most of its crude from the Basra region, on the Gulf.
The Basra port loading capacity is estimated at around 1.8mn barrels per day (bpd). Iraq has 10mn barrels in oil storage capacity in the southern region, Yasiri said.
Iraq’s crude output should not exceed 4.360mn barrels per day in compliance with a deal between oil exporting nations to curb supply in order to lift prices, he also said.
March oil exports won’t exceed 3.426mn bpd, he said.
Canada contributes $15m for Iraqi Women
The Canadian Department of Foreign Affairs, Trade and Development (DFATD) has contributed CAD 20 million ($15 million) in support of...