IRAQ TO START OIL SHIPPING IN MARCH

**Shilo** Wed Jan 13, 2010 2:21 pm

Iraq to start oil shipping in March

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Head of Iraq's State Oil Marketing Organization, Falah Alamri, said that the country plans to start crude oil shipping operations in March and prepares to export larger volumes of crude in the future, Reuters reported.

Iraq last year awarded contracts to foreign oil firms that would boost its output capacity to 12 million barrels per day (bpd) from 2.5m bpd in 2017. Pumping and exporting the anticipated rise in output presents huge logistical challenges for the Country, Alamri said.

He added that Iraq would revive the Iraqi Oil Tanker Company (IOTC). The Company would lease a Tanker and start crude deliveries in March or soon after. The IOTC, controlled by the Oil Ministry, was set up in 1972 and at one time had about 20 tankers.

Alamri also said that Iraq plans a joint venture company to handle the shipping, but declined to give further details on possible partners for IOTC.

Iraq recently offered a rare spot crude cargo of Basra oil on a delivered basis to Asian clients. It would be the first cargo to be delivered under the revived shipping operation, Alamri said.

http://www.menafn.com/qn_news_story_s.asp?StoryId=1093295160