ConocoPhilips today became the first lifter to load Iraqi crude from the newly opened SPM (single point mooring) in the Mideast Gulf. The new loading facility is now officially open, offering up to 500,000 b/d of export capacity on top of the 1.8 million b/d available at Basrah Oil Terminal and Khor al-Amaya Terminal. That’s more than enough to absorb the idle production capacity currently available in southern Iraq. The incremental output from the southern oil fields, including those operated by South Oil Co and which saw their output reduced due to the lack of export capacity, will reach 300,000-350,000 b/d in 2012.
Although the new SPM has a nameplate capacity of 900,000 b/d, pumps capacity limitations in Fao as well as in the main pumping station (PS1) will only enable it to work at half capacity. Once the second SPM is up and running by this summer, it will also be loading at the same 50% capacity. However, the advantage of having two additional loading platforms is the additional flexibility especially in the aftermath of unplanned export delays and shut-in due to bad weather in the Mideast Gulf.
By the time Iraq’s crude exports are able to use up all the 1 mb/d capacity, Fao is expected to be at full swing offering four SPMs loading at full capacity of 900,000 b/d each with all pumps, storage tanks and pipelines in place. This will be by the end of 2013 at the earliest.
Iraq is planning to export 2.6 million b/d on average this year out of a planned output of 3.4 million b/d, according to its 2012 federal budget law enacted on Feb.23 by the Iraqi parliament.