Floating Oil Island will increase Iraqi Oil Exports: Oil Ministry

The SOC (Basra based South Oil Co.) will build a floating oil island off the coast of Al-Faw Peninsula to enhance its capacity of export by more than 2 million barrels per day. The company has announced the project in the prospect of a growth the exports of Iraqi oil to reach more than 5 million barrels a day. Point to be noted that OPEC approved on 23rd June an increase in crude oil production to fulfill the increasing demand. The consultant of Iraqi Oil Ministry, Hamzah Al-Jawahri said that 5 floating terminals of Basra province are paying no attention to the Arab Gulf for commercial work. 2 fixed terminals at Basra and Khor Al-Amiyah are specific to loading at least 80% of Iraqi exports of crude oil. He added that all these terminals need administrative and technical staff. The Iraqi Oil Ministry pointed out the need for more flexibility in order to enhance the work in near future with an increase in crude oil.

Iraqi Oil Ministry

Al-Jawahri also indicated that the island will add a spare-parts warehouse for entire pieces of equipment and pumps. He added that there is a need for civil protection of technical services teams including modern and comfortable accommodations for entire staff. The floating will save time for oil export and avoid any emergency crisis due to disturbance from any of the pumps. It is important that Iraq has recently paid delay penalties of at least 252,300 U.S dollars (300 million Iraqi dinars). The island will also give storage capacity for oil-products, including refinery waste and black oil. The island will be linked to docks and it will offer a rapid alternative in the event of the failure from any of the 7 terminals. This project will give other services such as docking and launch oil tankers by ensuring their logistical and technical support. The oil tankers will be filled with a significant amount of quantities stored on the island. Al-Jawahri added that the contract regarding island project has been awarded to a Dutch company with an initial agreement. The major contract is expected to be signed at the start of 2019.

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