ZUG, Switzerland, Feb. 13 (UPI) -- A crude oil expansion project planned for Iraq would increase the country's export potential by almost 2 million barrels per day, Foster Wheeler announced.
Foster Wheeler, an engineering company with headquarters in Switzerland, announced it took a "significant" step with a crude oil export expansion project in Iraq.
The company said its project, a joint effort with the country's South Oil Co. and the Ministry of Oil, would increase the crude oil export capacity by 1.8 million barrels per day. The project, Foster Wheeler said, achieved its "first oil ready for start-up" milestone.
"Achievement of this milestone represents the start of the final commissioning activities leading to readiness of the facilities to load first oil cargo onto a tanker for export," the company added.
The International Energy Agency in December estimated crude oil production from Iraq is on pace to reach an average of 4.36 million bpd by 2016.
SOC Director General Dheyaa Jafaar Hyjam said Foster Wheeler's developments would position Iraq at "its rightful place as a world-class oil producer."
An IEA report, however, warns of growing political instability could dampen oil expectations in Iraq now that U.S. military forces have formally ended their mission there.
