Page 12 - MEOG Week 06 2023

MEOG NEWS IN BRIEF MEOG

sanctions are lifted and would continue
purchases from Russia if prices “continue to
be good”.
REUTERS
Basra Sky completes

historic export of VGO from
Iraq

Basra Sky Oil & Gas Service made history by
removal of barriers to commercialization, Kurdistan has resumed oil export to Turkey, being the first company to export VGO from
provision of work clothes, implementation of suspended due to powerful earthquakes that Iraq. Maziar Rajabi, the company’s board
data transmission projects in the pipeline bed hit the country earlier this week, Rudaw tv member and regional manager for the MENA,
(PLT), safety netting operation system (PSD) reported on Tuesday, citing the ministry’s states on December 28, 2022, that the Basra
and localization of tools. statement. Sky production facility in Khor al Zubair,
SHANA According to the report, the flow of oil southern Iraq, successfully shipped 6000 tons
through the Kurdistan-Turkey pipeline of VGO (vacuum gas oil) to Al Hamriya Port
resumed on Tuesday evening. in the UAE.
OIL On Monday, a massive 7.8 magnitude The vessel that Basra Sky chartered was
earthquake with several powerful aftershocks, called MT Dania and was loaded with 6000
Turkey suspends operations followed by another earthquake, rattled parts tons of VGO (vacuum gas oil) at Khor al
of Turkey, toppling thousands of homes
Zubair port, which is directly connected to
at Ceyhan and killing over 5,500 and injuring more the Basra Sky facility. After cargo arrived at Al
than 34,500 people. Following devastating
Hamriya Port, they were stored in the Basra
Operations at Ceyhan, a major oil export earthquakes, the ministry announced the Sky Storage facility in Hamriya Free Zone.
terminal on Turkey’s Mediterranean coast, suspension of oil exports to Turkey due to Maziar stated that this VGO shipment
were on February 6 suspended amid a security reasons. marked the introduction of a new product to
declared national state of emergency as a SPUTNIK the UAE market, adding that the new supply
precaution as the country came to terms flow from Iraq to Gulf countries would make
with the two huge, deadly earthquakes that Benchmarks extend gains; Basra Sky’s product unique.
struck its southeast earlier in the day leaving The company has ambitious plans to
thousands dead. Iraq, Qatar set March OSPs increase exports up to 25,000 tons by Q2 2023
Ceyhan receives crude from two major and to establish a prominent position in the
cross-border pipelines, namely the Baku- Middle East crude benchmarks Oman, Dubai petroleum market.
Tbilisi-Ceyhan (BTC) pipeline that carries oil and Murban continued to rise on Wednesday, India is also a target market, with Dubai
from Azerbaijan across Georgia to Turkey’s supported by expectations of a demand revival serving as a hub for petroleum trading and a
Mediterranean coast and the Kirkuk-Ceyhan in China and a supply disruption at Turkey’s prime location to engage with international
pipeline that transports oil from northern Ceyhan oil terminal. market.
Iraq. Turkish pipeline operator Botas said While Iraqi crude flows and exports Basra Sky has achieved a historic feat, and
neither pipeline has been damaged. have resumed, exports of Azeri crude were it is expected that this accomplishment will
The Ceyhan terminal exported just over still stopped. The Azeri BTC pipeline was, pave the way for further success in Iraq’s oil
1mn b/d of crude in January, according to however, still working and sending oil to industry. Basra Sky is well-positioned to take
Vortexa, as cited by Argus. This included storage in Ceyhan, two sources said. the lead in global energy exports thanks to its
around 665,000 b/d of Azerbaijani crude Iraq sets March Basrah Medium crude high standards, state-of-the-art infrastructure,
through the BTC and 395,000 b/d of Iraq’s price to Asia at minus $1.10 a barrel versus and enthusiastic workforce.
Kirkuk blend through the Kirkuk-Ceyhan. the Oman/Dubai average, up 30 cents from In addition, other countries in the region
Operations at Turkey’s port of Dortyol, a month ago, according to the Iraqi State have expressed interest in acquiring these
located across the Bay of Iskenderun from Organization for Marketing of Oil (SOMO). same raw materials.
Ceyhan, were also suspended until further Qatar sets the official selling prices (OSPs) This could open up another potential
notice. Around 1.9mn tonnes of oil products, for March Marine crude at plus $0.40 a barrel channel of international trade for Basra Sky.
LPG and biofuels were exported from the against the Oman/Dubai average, and for With well-established relationships with
port last year, while almost 3mn tonnes were Land crude at plus $1.10 a barrel against the customers around the world, Basra Sky could
imported, according to the Vortexa data. Oman/Dubai average, according to a pricing soon become one of the most prominent
BNE document issued by Qatar Petroleum. exporter of VGO Iraq. Basra Sky may keep
February OSPs for Qatar Marine and setting the bar high in the Iraqi petroleum
Kurdistan resumes halted Qatar Land were set at $0.75 a barrel over market and beyond if it works hard, innovates,
and has ambition.
the Oman/Dubai average and $2.10 a barrel,
oil exports to Turkey respectively. BASRA SKY
The minister also said India will consider
The Ministry of Natural Resources of Iraqi buying oil from Iran and Venezuela if

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