June 7, 2003	Saturday	Rabi-us-Sani 6, 1424

NICOSIA, June 6: Regular Iraqi oil exports are not expected to restart until early July at the earliest, the Middle East Economic Survey (MEES) reports in its Monday edition.

“Moreover, due to ongoing security problems at oil fields, it is still unclear what production levels Iraq will be able to sustain once exports resume,” the industry newsletter said.

The Cyprus-based specialist newsletter said there were “some question marks over the exact volumes of Basra Light crude available in storage in the south of the country, with the security and telecommunications problems again making it difficult for oil officials to get an accurate picture.

“The looting of oil facilities is being carried out on a systematic, not sporadic basis, with the aim of undermining efforts to restore the sector to productivity,” MEES said.

Iraq’s State Oil Marketing Organization (SOMO) on Thursday tendered eight million barrels of crude oil which have been held in storage at Ceyhan in Turkey and two million barrels of Basra Light crude held in storage in southern Iraq since the US-led war launched March 20 halted exports.

MEES, citing SOMO’s tender, reported that both grades were of “normal export quality” and were to be lifted June 17-30, payment would be made in US dollars, and the Kirkuk volumes in Ceyhan would be sold in eight one-million barrel parcels.

On the ground, the newsletter quoted a senior oil ministry official in Baghdad as saying that plans would be announced soon for bringing production capacity to the pre-March 2003 level of three million bpd.

“By the end of June we plan to reach 1.5 million bpd or more,” the official said.

A spokesman for the Iraqi occupation administration said Tuesday that Iraqi exports were “imminent ... It is really just a question of nailing down contracts.”—AFP