Iraq Advances Southern Export Capacity Boost

18 Apr 2025 Issue: 68 / 16 By: Yesar Al-Maleki

Iraq has finally secured contractors for the key ‘Sealine-3’ project to boost its southern export capacity. Despite claimed ‘operating capacity’ of 2mn b/d, the new infrastructure will not be enough to resolve export constraints that cap southern output. And the project’s troubled history shows many things can go wrong before delivery in 2027.

Iraq’s oil ministry this week signed a contract with a consortium grouping Italy’s offshore oil and gas specialist Micoperi and Turkish, and Russia-focused, construction firm Esta to build the long-delayed Sealine-3 (SL-3) offshore pipeline. The project aims to upgrade the country’s dilapidated Gulf export infrastructure, which has been a key hurdle to increasing production and exports. The signature also puts an end to uncertainty following Dutch maritime services provider Boskalis’ withdrawal in mid-2024 after disagreements with Baghdad (MEES, 26 July 2024).

In a 14 April statement, the ministry says the 48” pipeline will have a “design capacity” of 2.4mn b/d, though oil minister Hayan Abdulghani gives expected “operating capacity” at a lower 2mn b/d, and even this could prove optimistic. (CONTINUED - 1054 WORDS)