Technical problems in al-Baker port threaten to obstruct Iraqi exports
Iraq, Economics, 7/16/1999

An oil source at the UN announced on Tuesday night that technical problems in al-Baker port may obstruct Iraqi oil exports, despite the recent increase in oil production.

The source added that the cost of maintenance which exceeds US $500,000 is very necessary for the oil pipeline offloading area, noting that the solution to this problem is through opening a new offloading area near al-Baker port, at Khour al-Amya.

Iraq currently exports some 2.2 million barrels of oil per day out of a total production of 2.6 million barrels. Iraqi Oil Minister Amer Rashid has announced that his country intends to raise its production capacity of oil to three million barrels everyday as of December 1999 and to 3.5 billion barrels daily before the end of next year.

The source stated that these expectations can be met but under the conditions of continued arrival of spare parts needed to repair the infrastructure.

So far Iraq has received spare parts at a cost of US $44 million out of spare parts as a cost of US $300 million approved by the UN Security Council.

Meanwhile, sources at the UN Security Council reported that the UN sanctions committee is obstructing approval of spare parts contracts valued at US $100 million.

The UN has allowed Iraq the import of oil valued at US $5.2 billion every six months. The US resolutions state that half of the crude oil to goes through Turkish pipelines and the second half is to flow through al-Baker port on the Gulf.

Previous Stories:
  Morocco endeavors to settle Iraqi debt entailed by Gulf War   (7/14/1999)
  Annan calls for quick approval of spare parts for Iraq   (7/9/1999)
  Iraqi - Egyptian discussions for increasing the commercial exchange   (7/7/1999)

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