Iraq’s crude oil exports averaged 2.15 million barrels a day (b/d) in December, earning the country its highest revenue in four months, at more than $7bn, and increasing its total oil earnings by 60 per cent for 2011.

The country exported a total of 66.5 million barrels, up 3.7 per cent on November’s total of 64.1 million barrels, according to the latest data released by the Oil Ministry.

Although total exports have risen 13.8 per cent over the year, Iraq’s oil export revenue has leapt by almost 60 per cent to $82.98bn, compared with the $52.25bn earned in 2010. This is largely down to the sustained high oil prices, which averaged $105.02 a barrel during 2011. In 2010, Iraqi crude sold for only $75.06 a barrel.

Shipments from the Basra oil terminal in the south of Iraq rose to 53.7 million barrels, averaging 1.73 million b/d, up just 1.2 per cent from 1.71 million b/d shipped in November. At the end of 2010, the terminal exported only 47.4 million barrels at an average of 1.53 million b/d.

In 2011, Iraq has increased its average southern exports into the Gulf by 15 per cent, to 1.71 million b/d from 1.48 million b/d in 2010. 

Exports from the north of the country through a pipeline from Kirkuk to the Turkish port of Ceyhan were stable at 12.8 million barrels in December, averaging 410,000 b/d and bringing in $1.34bn in revenue.

Pipeline exports have fluctuated over the year, reaching a peak of 550,000 b/d in June and dropping as low as 340,000 b/d in September, resulting in a drop in the region’s oil production (MEED 24:10:11). This arose from a dispute between the Oil Ministry and the semi-autonomous Kurdistan Regional Government (KRG).

Baghdad plans to increase oil production capacity to 3.4 million b/d by the end of 2012. The Oil Ministry forecasts total exports will increase to 2.6 million b/d, up almost 20 per cent, through the commissioning of new single-point mooring systems (SPMs) near the Basra oil terminal. The first SPM will start pumping on 27 January, adding 850,000 b/d to Iraq’s export capacity and easing the current bottleneck on loading tankers. 

Baghdad’s planned production increase includes 150,000 b/d from the KRG, which contributed only 50,000 b/d to northern pipeline exports in 2011.