* Little, if any, oil export growth up to June
* Pipeline pump problem at export facilities in south
* Competitive pricing lures buyers
By Peg Mackey
LONDON, April 11 (Reuters) - Pipeline bottlenecks at Iraq'ssouthern ports are preventing OPEC's second-biggest producerfrom increasing oil exports, even while it offers competitivepricing that is attracting rising demand.
Regional rivals including OPEC heavyweight Saudi Arabia wereunnerved in December when Baghdad announced a 2013 export targetof 2.9 million barrels per day (bpd), up 500,000 bpd from lastyear.
But the gains have yet to materialise.
Bad weather was blamed at the start of the year, but nowlogistical issues are likely to keep exports close to 2.4million bpd - the average for 2012 - through the first half ofthis year, Iraqi and Western oil industry sources say.
"Material growth will not happen quickly," said a seniorWestern oil executive from a company operating in southern Iraq.
Iraq is increasingly concentrating on selling its crude oilto Asia, undercutting its regional competitors.
Buyers of Basra Light crude, which accounts for nearly 90percent of Iraq's exports, asked for 2.8 million bpd in May -the highest ever level, a senior Iraqi oil official said,although only 2 million bpd has been allocated.
"The main problem is with logistics. There are limitationson the pumping capacity to the southern export facilities. Butthis will be resolved," the official said.
"There is huge demand for our oil. Some customers are tryingto avoid Iran and buy from us instead."
Asian buyers of Iran's crude have cut back sharply as toughWestern sanctions on Tehran over its nuclear programme make itincreasingly difficult to pay for and ship the oil.
FAST GROWING
After stagnating for decades due to wars and sanctions,Iraq's oil output and exports began to rise in earnest in 2010after Baghdad secured service contracts with companies such asBP, Royal Dutch Shell, Eni and ExxonMobil.
Swift gains at Iraq's giant southern oilfields increasedsupply by 600,000 bpd over the past two years, making Iraq theworld's fastest growing oil exporter.
Work continues apace. Initial flows at Majnoon, operated byShell, are expected to hit 100,000 bpd next month, but Westernoil executives say Iraq's lofty export goal of 2.9 million bpdmay not be met until the fourth quarter.
Production in the first quarter was just above 3 millionbpd, allowing for exports of 2.4 million bpd, which generatedmore than $20 billion.
To facilitate its rising supply, Iraq expanded exportcapacity in the Gulf last year by installing two offshorefloating terminals. But it's still fitting subsea pipelines andloading pumps for optimal use of the capacity.
Storage is also a constraint: there is only space for 6.5million barrels of crude.
Furthermore, Kirkuk crude from Iraq's northern oilfieldsaccounted for about 300,000 bpd of the export total. Theautonomous Kurdistan Regional Government (KRG) is due tocontribute 250,000 bpd to Iraq's overall exports.
But a payment dispute between the KRG and Baghdad has keptshipments of over 100,000 bpd on hold since December. The halt,if prolonged, will frustrate Iraq's plan to increase exports.
These hurdles suggest Iraq's production and exports arelikely to grow by an average 200,000 to 300,000 bpd this year,Western and Iraqi oil experts say.