Sinopec has doubled its purchases of Iraqi oil in 2013
12/04/2012 8:23 am
Economic / news agency Buratha: Trade sources said on Monday that Sinopec, the largest oil refiner in Asia will double the size of its purchases from Iraq in fixed-term contracts next year to have almost doubled to reach 270 thousand barrels per day as it seeks to provide alternative supplies of Iranian oil.
However, the sources told Reuters that other refining companies will reduce their purchases, which will make China's total purchases from Iraq in one year contracts only rise 8.2 percent next year to reach 568 thousand barrels per day.
And forced Chinese Sinopec, the largest buyer of Iranian crude to reduce its imports for an exemption from the sanctions imposed by the United States on Tehran over its nuclear program.
Iraq is the first country in the world in terms of the pace of growth of oil exports has been a major source of supply in stable amid uncertainty over Iranian oil.
Read More Link on Right
A source familiar with the Iraqi oil contract "the existence of a stable supply of crude oil is vital for a company as large as Sinopec refining and Iraq has enormous potential for the production of oil."
The source, who asked not to be named because he was not authorized to speak to the media, "It is a precious opportunity for Sinopec."
And according to customs data, China's largest buyer of Iranian oil and the largest trading partner of Tehran reduced its imports from Iran increased by 22.2 percent in the period between January and October to 424 thousand barrels per day.
And beyond Iraq's production of crude oil, three million barrels per day for the first time in three decades, as major oil companies investing in the world billions of dollars to develop Iraqi oil fields.
However, most Chinese companies will keep their purchases of Iraqi crude to the same size or less, next year, as difficult to resell because of high crude prices and loading delays and the lack of buyers in Asia.
The Chinese companies have agreed to buy 525 thousand barrels per day of Iraqi oil this year, but customs data show that imports from Iraq amounted to 298 thousand barrels per day, just in the first ten months of the year.
The trade sources said that Sinochem Corp Chinese brand will keep its contract with Iraq the same size while cutting both snook and Zhenhua Oil
The sources added that China Oil trading arm of PetroChina abandons its contract with Iraq because it will get more crude in return for its investment in Iraqi oil fields.
PetroChina is developing Rumaila and Halfaya and Humpback in Iraq.
But the sources said that PetroChina has sold almost all its stake of Iraq's oil production in the market this year instead of moving cargo to China because the company's refineries can not handle Iraqi crude.