RUMAILA: Iraq expects its oil output to rise to 3 million barrels per day by the end of this year and sees it growing an additional 500,000 to 1 million bpd next year, Deputy Prime Minister Hussain Al-Shahristani said. Shahristani said Iraq's program to install new single point moorings or SPMs would help increase export capacity by an additional 1.8 million bpd by the end of this year. The OPEC member's current output is about 2.7 million to 2.8 million bpd. Iraq's oil exports in May averaged 2.225 million bpd. "Export terminals and pipelines will not be the obstacle," Shahristani, who is responsible for Iraq's energy affairs, told reporters during a visit to southern oilfields and export facilities. Meanwhile, Iraq finalized Sunday two gas deals with a pair of international consortiums to develop two promising gas fields to fuel its growing electricity demands. Iraqis have been struggling to rebuild their war-damaged electricity grid and improve power stations and lines, but blackouts are still common. Power shortages last summer spurred demonstrations that turned deadly when security forces fired into crowds. Turkey's TPAO-led consortium will develop the 4.6 trillion cubic feet Mansouriya field in eastern Iraq for $7 per barrel of oil equivalent. It plans to reach a peak production of at least 320 million cubic feet per day. State-run Kuwait Energy and Korea Gas Corp., KOGAS, are teaming up with TPAO. The second consortium that groups Kuwait Energy with TPAO will develop the 1.1 trillion cubic feet Siba field in the south. They will be paid $7.50 per barrel of oil equivalent to what they produce, with a peak production level estimated at 100 million cubic feet. "The ministry has drawn an ambitious plan to meet the needs for electricity, to meet the needs of gas-dependent industries and to make Iraq one of the leading countries that export gas," said Oil Minister Abdul-Karim Elaibi. Iraq is rebuilding its oil infrastructure after years of conflict and has signed deals with oil majors to reach a proposed production capacity of 12 million bpd by 2017. Most analysts see 6-7 million bpd as more realistic. Shahristani said he was satisfied with the pace of development at the country's giant Rumaila oilfield and added output there should reach 1.4 million to 1.5 million bpd by the end of this year. He put current output from the field at about 1.250 mln bpd. Rumaila, developed by BP and China's CNPC , produces almost half of the country's crude output. Output from another southern field, West Qurna Phase One, which is being developed by ExxonMobill and Royal Dutch Shell, was expected to reach 400,000 barrels per day by the end of this year, from current production of around 350,000 bpd, Shahristani said. "Generally, work in the field is moving well," he said after a briefing with officials from Exxon and Iraq's state South Oil Co. (SOC) at West Qurna Phase One oilfield.
