Iraq compete Saudi Arabia in the Asian oil market

“Iraq pledges to offer easier conditions for Asian buyers with its quest to increase its stake in the major Asian market to market its growing exports,” Sources in the oil industry said in statements reported by Reuters, briefed by “Shafaq News”.

Baghdad now is going a step further, offering to extend credit to oil buyers in Asia for a further 30 days - in effect providing two months of deferred payment, industry sources say. The main targets are energy hungry; India and China.

The senior executive oil official said that “probably, Iraq is strengthening its efforts to get a bigger share in the Asian market, but the extension of the payment period will be only if the buyer agrees to a significant increase in quantities”.

He pointed out that the race to attract Asian customers have already led to increase competition between Iraq and Saudi Arabia , the largest oil producers in “ OPEC “ with Baghdad’s challenge to Riyadh in prices early this year .

It is noteworthy that exports of Iraq has dropped to two million barrels per day in September , marking the lowest level in 19 months as reduced reforms and expansions business in the strategic southern oil port of Basra of Light crude shipments sharply.

Such shipments constitute most of the export earnings of Baghdad. Iraq has exported about 2.6 million barrels of oil per day in August.

Iraq has signed a series of service contracts with major international oil companies such as “ Shell “ , “BP” ,” Exxon Mobil “ and “ Total “ at the end of 2009 to develop oil fields , which have been neglected for decades because of wars and sanctions.

Baghdad expects an imminent return to growth and an increase of 300 thousand barrels per day , a large part of which comes from the giant Majnoon field, which is run by “ Royal Dutch Shell “.

The new southern oil will push Basra Light exports back to 2.3 million bpd, according to Iraqi oil officials.