Splitting Basra Crude “Makes Sense”

By John Lee.

Reuters reports that Iraq’s plan to split its Basra crude into ‘heavy’ and ‘light’ grades from May should reduce quality issues dogging its exports, but adds that there will be challenges getting the price it wants and setting up the required infrastructure.

An official at the state-run South Oil Company (SOC), who declined to be named, said that Iraq was planning to ship an average of 350,000 bpd of Basra Heavy grade, equating to about 13 percent of the current export volume of 2.6-2.7 million bpd.

Most of the heavy crude would come from the Missan oilfields.

The State Oil Marketing Organization (SOMO) is expected to announce an official selling price (OSP) for Basra Heavy on Sunday when it releases May prices.

(Source: Reuters)

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