London-listed oil and gas services company Petrofac said Wednesday it secured a $160 million contract to help overhaul a southern Iraqi oil port.

The company said it secured the contract from Basra Oil Co., known previously as South Oil Co., for an expansion project from a terminal about 40 miles off the southern coast that's responsible for nearly all of what Iraq exports.

The contract involves infrastructure that facilitates crude oil tankers waiting to load oil, more than 180 miles of new pipelines and a mile of associated hose infrastructure. To date, the company said it's facilitated the export of more than 2.2 billion barrels of oil for Iraq.

Petrofrac secured a $70 million contract from the Iraqi company early this year. The scope of that arrangement expanded on a six-year agreement to provide support for the offshore international crude oil export expansion production facility in the country's south.

That contract, awarded in April, followed a declaration of new investment opportunities for refineries in Basra.

A similar contract was awarded to Petrofac in December 2016. At the start of this December, the Iraqi Oil Ministry said the southern port at Basra recently sent out an average of 3.9 million barrels of oil per day, the highest capacity ever reached there.

Oil Minister Jabar al-Luaibi said southern exports were supported by improved market conditions as the price of oil holds above $60 per barrel.

Iraq is party to the multilateral effort led by the Organization of Petroleum Exporting Countries to balance an oversupplied crude oil market with coordinated production declines, but has historically been one of the least compliant. The agreement, recently extended to the end of 2018, is credited with setting a floor under the price of oil at $50 per barrel.

A survey of OPEC results from commodity pricing group S&P Global Platts said Iraq averaged 4.38 million barrels per day in oil production in October, a decline of 120,000 barrels per day. In terms of compliance, Platts found in an emailed report that Iraq, one of the largest producers in OPEC, was over its allocation by about 80,000 barrels per day.

Tweet

Investors turn against fossil fuels at Paris climate summit
Paris (AFP) Dec 12, 2017
Major investors vowed Tuesday to move away from Earth-warming fossil fuels as world leaders met in Paris seeking to unlock new cash to save humanity from climate "doom". Two years to the day since 195 nations sealed the Paris Agreement to avert worst-case climate change, banks and companies announced billions of dollars of intended divestments from coal, oil and natural gas at a finance-them ... read more

Related Links
All About Oil and Gas News at OilGasDaily.com

Thanks for being here; We need your help. The SpaceDaily news network continues to grow but revenues have never been harder to maintain. With the rise of Ad Blockers, and Facebook - our traditional revenue sources via quality network advertising continues to decline. And unlike so many other news sites, we don't have a paywall - with those annoying usernames and passwords. Our news coverage takes time and effort to publish 365 days a year. If you find our news sites informative and useful then please consider becoming a regular supporter or for now make a one off contribution.
SpaceDaily Contributor $5 Billed Once credit card or paypal		SpaceDaily Monthly Supporter $5 Billed Monthly paypal only