Iraq is aiming to export between 1.88 million and 1.95 million barrels a day of Basra light crude and Kirkuk crude oil in the second half of 2009, the head of the country's State Oil Marketing Organization told Dow Jones Newswires in an interview late Tuesday.


That compares with an average of 1.946 million barrels a day during the first five months of 2009, according to figures released by SOMO.

Falah Alamri said 1.430 million to 1.450 million barrels a day are expected to be sold via the southern Basra export terminal in the Arabian Gulf, while the remaining 450,000 to 500,000 barrels a day will be exported via the Turkish Mediterranean port of Ceyhan.

"We have signed term contracts with companies to sell around 2.35 million barrels a day for the second half of 2009," he said, adding that the difference between the signed term contracts and how much Iraq is expected to sell is down to the fact some companies might not buy all the quantities they ask for.

Alamri said fresh crude oil exports from Kurdish oil fields were behind the expected increase in oil sales. The Kurdistan region Monday started exporting 100,000 barrels a day from Kurdish oil fields for the first time after foreign companies developed two big oil fields, Tawke and Taq Taq.

European countries will buy around 37% of Iraqi crude oil exports during the second half of the year, Asian countries 33% and the U.S. 30%, he said.

He also said Iraq will continue to supply neighboring Jordan with 10,000 barrels a day for the rest of the year. Iraq is selling Jordan the crude under a concession price of dated Brent minus $18 a barrel in accordance with an agreement reached by the two countries last year.

Revenue from the sale of Iraqi crude oil during the first five months of 2009 has reached $12.5 billion, Alamri said. Total revenue this year is expected to be less than the $60 billion Baghdad earned from oil sales in 2008 because of lower oil prices.

Iraq, whose primary source of revenue comes from oil, needs major investment to boost oil output after years of sanctions and war. The Iraqi Oil Ministry is planning to hold a bidding session at the end of this month to award eight new oil and gas deals. The country, which has the world's third-largest oil reserves, has also announced a second bidding round to develop 11 other oil and gas fields.

Last year, the Oil Ministry signed a $3-billion contract with China National Petroleum Corp. to develop the Al Ahdab field in Wasit Province, 150 kilometers south of Baghdad. The field is expected to produce up to 125,000 barrels a day when it is developed. Iraq has also signed a preliminary agreement with Royal Dutch Shell PLC (RDSA) to develop the gas infrastructure in the south of the country.