Iraqi crude output has been limited more by export capacity constraints than Opec+ cuts over the past year. Nevertheless, on 20 June the cabinet suspended work on a key project aimed at expanding export capacity, suspending an earlier award for Dutch firm Boskalis to build the long-delayed Sealine-3 (SL-3) offshore pipeline (see map, MEES, 30 June & MEES, 2 June).
The 48” pipeline will have a nameplate capacity of 2mn b/d, although pumping station constraints would likely restrict initial flows. Crude would be delivered from onshore storage facilities to the idled 600,000 b/d capacity Khor al-Amaya (KAAOT) and 900,000 b/d SPM4 facilities. The work is to be financed by a $518mn loan from Japan’s JICA. (CONTINUED - 306 WORDS)
