Iraq's State Oil Marketing Organization (SOMO) announced June 11 the results of its tenders for the export of 9.5 million bbl of oil currently stored at Ceyhan, Turkey, the US Energy Information Administration reported. The tenders followed removal of 13-year-old sanctions by the United Nations Security Council on May 22 (OGJ June 2, 2003, p.17).
Oil well sabotaged by retreating Iraqi forces burns.
SOMO awarded 2 million bbl each to Total SA and ChevronTexaco Corp. for delivery to the US, and 5.5 million bbl for Europe to Repsol-YPF SA of Spain, CEPSA SA of Spain, ENI SPA of Italy, and a Turkish marketing firm Turpas. Loading is slated to continue through June 30. Most of Iraq's current production comes from the country's northern fields, which send oil for export to Ceyhan.
Meanwhile, the US Department of Energy has been assisting US and British forces in Iraq in restoring oil facilities damaged during the recent Iraq war in order for production to resume.
Press reports indicate that Iraq's South Oil Co., formerly Iraq's largest producer, suffered significant damage in postwar looting and destruction and currently is producing at only 10% of its capacity. Damaged pipelines and sabotaged wells were among the factors resulting in curtailment of output from Iraq's southern fields and the Basrah refinery.
