Iraq’s main oil export terminal, off the southern city of Basra, that loads 1.8mb/d of oil, will stop operations for 24 hours, because of work to install a new pipeline feeding the facility, Reuters reported.
According to the South Oil Company, offshore loading, which takes place at three single-point moorings, will not be affected by the temporary suspension of Basra operations, Oil Price informed.
Iraq has been the main cause of worry for energy investors ever since OPEC agreed to cut its production in November 2016 to stimulate an increase in oil prices. The cartel’s second-largest producer insisted it should be exempted from the agreement because of its dependence on oil revenues in the context of its fight against the Islamic State, but eventually agreed to a cut of 200,000b/d.
Many expected Iraq to cheat on the deal, and these expectations were heightened after the country reported a record high export rate of 3.51mb/d from the Basra terminal in December. Still, Oil Minister, Jabar al-Luaibi, said at the time he announced the export figure that Iraq is committed to cutting production as per the OPEC deal.