Basra's South Oil Company (SOC) are planning to develop a floating oil island based in the coastline off the al-Faw peninsula. The project aims to support oil export increases with the island having the potential to increase oil exports by up to 2 million barrels per day.
With OPEC approving production increases last month, Basra currently has five floating terminals, as well as two fixed offshore terminals - Khor al-Amiyah and al-Basra, which support approximately 80% of Iraq's oil exports.
Oil Ministry consultant, Hamzah al-Jawahiri revealed more details on the project which will include a spare parts warehouse to store equipment and pumps. The island will also house civil protection and technical services teams and provide modern accommodation for workers.
He also added that the island will prevent export delays which are caused by technical disruption to pumps. These delays have resulted in financial penalties for Iraq previously.
The island will additionally provide storage for black oil, oil derivatives and refinery waste, while tankers will be filled with oil on the island and can be anchored and launched, providing improved logistical solutions.
Jawahiri explained that the contract has been awarded to a Dutch company, with discussions continuing regarding the cost and time frame of completion. The contracts is expected to be signed in early 2019, with services to begin in late 2022.
Source: Al Monitor