Iraq's southern oil export capacity may rise to 3.35 mil b/d by September: SOMO

Iraq's southern oil export capacity may go up to 3.35 million b/d by September from around 3.3 million b/d now, as OPEC's second biggest producer pumps more crude in line with OPEC+ unwinding output cuts, deputy director general of state oil marketer SOMO said on July 21.

"For the time being, this (3.3 million b/d) is what we believe we can achieve, taking into account not only the limitations on export capacity, but also rehabilitation activities that may cause stoppages sometimes," Ali al-Shatari told S&P Global Commodity Insights in an interview.

"This number of course might go higher, but I'm a bit conservative until I see the plans of the export facilities development go forward."

SOMO expects Basrah Heavy exports to be around 1.1 million b/d in July and Basrah Medium 2.2 million b/d, Shatari said.

Iraq exported 1.120 million b/d of Basrah Heavy in June and 2.146 million b/d of Basrah Medium, with total southern oil exports reaching 3.266 million b/d, according to SOMO figures.

Both grades are exported from Iraq's southern terminals on the Persian Gulf, which have been under expansion work for months but have faced numerous delays.

OPEC+ meeting

Iraq's oil production rose 1% in June from a month earlier, figures from SOMO showed July 7, as the country pumped slightly above its OPEC+ quota.

Iraq's OPEC+ quota for July is 4.580 million b/d, up from 4.509 million b/d in June.

Total oil production, including flows from the semi-autonomous Kurdistan region, reached 4.515 million b/d in June, up from 4.470 million b/d in May, according to SOMO data.

Iraq has in previous months mostly pumped below its OPEC+ quota.

OPEC+ ministers on June 30 reaffirmed plans for a nominal 648,000 b/d production rise in August as questions continue to swirl about how much crude oil the group will be able and willing to pump in the months ahead.

Delegates told S&P Global at the time that ministers did not discuss any output targets beyond that, leaving that decision until their next meeting Aug. 3.