Iraq crude oil exports rise in May 2014

Iraq crude oil exports increased slightly in May despite a militant attack in March that had kept a crucial oil pipeline inactive.

The Iraq Oil Ministry said in a report that exports of oil averaged 2.582 million barrels a day in May, based on an average price of $100.08 per barrel, compared to 2.510 million barrels per day in the previous month.

Sales have also seen an upward trend. Total sales from oil grossed $8.68 billion in May, up from $7.582 billion in April.

Iraq has the world’s fourth-largest oil reserves. Approximately there are 143.1 billion barrels of oil in the country. Oil contributes a significant portion to the overall revenue for the government. Currently it makes up about 95% of the country’s total budget.

The increase in oil export is a triumph because the crucial pipeline to Turkey’s Mediterranean port of Ceyhan was destroyed in a militancy attack in March 2014. A noteworthy portion of the country’s oil was exported through this pipeline on the Persian Gulf. The pipeline is yet to be fixed. The pipeline pumps between 300,000 to 400,000 barrels a day when it operates in full swing.

Iraq has been struggling to develop its oil and gas sectors since the 2003 U.S. led invasion. The worsening security condition frightened many investors away. At the moment, Iraq faces obstacles such as insurgent attacks and infrastructure bottlenecks. Exports have also been limited by a dispute between the central government and the autonomous northern Kurdish region. Despite these obstacles, the export has seen positive figures over the past few months.

Authorities are seeking to noticeably raise the oil export to fund much-needed reconstruction of the country’s conflict-battered economy and weak infrastructure.