Oil executives report
an average daily rate of 3.297 million barrels per day currently exported from
the southern region in Iraq despite ongoing tribal clashes and proving higher
than December’s average of exported oil.
The southern region of
Iraq produces the most oil for the country and most of the 3.215 million bpd is
from this region. Crude oil shipments from the south therefore account for all
of Iraq’s central governments oil sales since the Kurdish government in the
north attempted to financially distance itself from due to an escalating
dispute over oil export rights and budgetary issues.
South Oil Company’s
deputy director, general Salah Mahdi also says fields are running normally in Basra. "The security
situation is very good, I don't see any impact on our oil operations," he
This is partly due to
the country’s increased presence of the armoured army division and police
strike force in the Southern oil city of Basra to disarm and diffuse fighting
between Shi’ite Muslim tribes as it intensified, according to local officials.
However, Islamic state militants in the north and west have caused concern for
energy operations in the south.
operations in Basra are sending reassuring messages to international foreign
oil companies," Mahdi said.
South Oil Co. will
soon become Basra Oil company and will oversee exploration and production
operations as part of a nationwide initiative to create smaller provincial