Iraqi Government May Export Petrol

Press, Volume XCVIII, Issue 29004, 19 September 1959, Page 10

Iraqi Government May Export Petrol

(From a Reuter Correspondent)

BEIRUT The Government of Iraq is expected soon to go into the petrol export business, according to reports reaching here. A trade pact signed with North Vietnam on July 8 listed oil products among the goods which Iraq will trade in return for North Vietnamese rice, sugar and timber. This is the first time that Iraq has made a deal involving oil products. It is understood that the Moscow-minded Dr. Ibrahim Kubba, who signed the trade pact as Economics Minister, had a clause inserted in the agreement with the Iraq Petroleum Company allowing Iraq to export oil products such as motor fuel.

Dr. Kubba became acting-Minis-ter for Oil Affairs, as well as Land Reform Minister, in the cabinet reshuffle on July 13. Major-General Abdul Karim Kassem, the Prime Minister, can draw on a refinery . production capacity of 750,000 tons a year at comparatively short notice if he decides to increase the national income by exporting petrol or lubricants. The Government owns a sprawling 30-acre refinery at Daura, near Bagdad, which is now turning out 1,250,000 tons of refined products a year for domestic consumption. With modifications, the refinery could increase its output to 2,000,000 tons and pump the surplus down an existing pipeline to the Persian Gulf port of Basra. There are smaller refineries at Khanaqin and Basra. The last of 153 British and United States technicians are reported to have left Daura a few weeks before the Vietnamese pact was signed. They had all resigned since the 1958 revolution. Iraqis have moved into neat company houses left empty by the westerners—and so, the reports state, have 15 Soviet technicians and their families. They arrived last March on a year’s contract which, according to a statement made by an official of the Iraqi Government Oil Refineries Administration, it is not intended to renew. Saving On Salaries "We had some friends among the Western technicians, but under the present arrangements we are saving 1,000,000 dinars (equivalent to sterling) a year on salaries,” the official is reported to have explained. “Hie Soviet technicians are paid a total of 50,000 dinars a year. Not only do they cost less as a group, but they accept less individually than the westerners.” According to these figures, the Soviet oilmen are earning an average of about £3300 a year. About 1500 Iraqis work at Daura, where oil flows continually day and night through tall silver-painted refining units and overhead pipes. Crude oil reaches Daura through a 12-inch pipeline from wells 180 miles to the north, near Kirkuk. It is turned into motor and aviation spirit, diesel oil, gas oil and • kerosene. Additional plant opened in 1957 produces 70 types of high-grade lubricants.

Refined products are pumped through another pipeline to Bagdad. The capital takes about 40 per cent, of Daura’s output. General Kassem mentioned an increase in oil exports in his speech on Revolution Day, July 14. “Since the revolution, we

have decided on our oil policy,” he said. “This policy aims at the increase of production and export to ensure the necessary wealth for this country. We are still adhering to this policy. “We are conducting negotiations with the petroleum companies and our position will be decided later according to the results of the negotiations.” Iraq received oil revenues of 83,800.000 dinars in 1958 based on an output for the year of 35,492,000 tons. This was much more than in the previous year, when the Government received 48,900,000 dinars on 21,704,000 tons. Under its- agreement with the Iraq Petroleum Company, the Iraqi Government receives oneeight of the crude oil produced in addition to the cash payment.