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LONDON (Reuters) -- Iraq is offering a third batch of Kirkuk crude in a sales tender, but is considering longer term supply deals as confidence grows that Baghdad can sustain steady flows from its northern oilfields to world markets.
Shipments of Kirkuk crude resumed this week after sabotage along the vital pipeline to Turkey halted loadings for almost a year. Baghdad has already sold 7.6 million barrels of the crude, which is pumped to the Ceyhan terminal, through two tenders at the end of last month.
Its third sales tender for six million barrels, which closes on July 5, is for loading up to July 18, an official from Iraq's state oil marketer SOMO said on Saturday.
On Friday, SOMO awarded 3.6 million barrels in a second tender to Repsol, Royal Dutch Shell and Vitol's North Atlantic refining unit. Exxon Mobil and Turkey's Tupras bought 4 million barrels in the first tender.
As pumping along the 600-mile pipeline from Iraq's giant Kirkuk oilfield to Turkey grows steadier, Baghdad is hoping to secure long-term contracts for its northern crude from August.
"SOMO announces after the steady resumption of Kirkuk pumping to Ceyhan terminal, it is considering entering into crude oil term contracts for the sale of Kirkuk crude oil ex-Ceyhan starting on 1 August, 2006 until 31 December," a SOMO official said on Friday.
Iraq met only limited success in its previous attempt to sell Kirkuk via term contracts in 2004. It sold about 12 million barrels from September through December that year.
It has relied almost exclusively on exports of Basra Light from the country's southern Gulf terminal ever since, with exports running at about 1.5 million barrels per day. That volume is sold through six-month term contracts.
Prior to the U.S.-led war in 2003, Iraq was exporting steady Kirkuk volumes of at least 700,000 barrels per day (bpd).