Concerns of the oil industry in Iraq
And Walid Khadduri *,
Concerns of the oil industry in Iraq



25-08-2013 01:20 PM Free -


Iraq has available a huge oil reserves, with oil reserves estimated at 143 billion barrels and natural gas reserves estimated at 3.2 trillion cubic meters. But despite these precautions huge put Iraq in the ranks of the top five countries of petroleum globally, the level of production relatively limited and far less than allowed by the precautions.

and suggested expectations official that the rate of oil production of the country in 2013 about 3.7 million barrels a day, and exports of crude oil about 2.9 million barrels per day, including about 250 thousand barrels per day from the Kurdistan region, the highest levels of production and export since three decades, in the event of achieving these rates actually.

are evident now difficult to achieve projected rates of production and export in the schedule.

Despite the fact that the rate of Iraqi oil production has risen to about 3.4 million barrels per day, an increase of about one million barrels per day from the level prevailing before contracting with international companies,

it is clear that there are difficulties faced by these companies in their work are delaying their programs, or it unsealed its contracts with the oil ministry federal , to contract instead with the Kurdistan Regional Government for their preference contracts this on those.

and companies face great difficulties in dealing with the bureaucracy of Iraq regarding the delay and obstruction at the level of customs formalities for the import of equipment for the development of the fields In regard to the difficulty of obtaining visas for foreign employees.

Thus, delayed the company «Shell» in the development of the Majnoon field to produce about 100 thousand barrels per day, and true the same thing on the Rumaila field, which is operated by «BBC» British and produce him about 1.35 million barrels per day and presumably add 100 thousand barrels per day this year,

as delayed Inc. «Malaysia's Petronas to start production of about 50 thousand barrels per day from the Gharraf field which has a production capacity of about 230 thousand barrels per day.


, will mean a lower level of Iraqi oil production is expected this year to get the federal budget deficit for 2013 of about $ 19 billion.

In addition to the obstacles mentioned, there is a security concern, for example, but not exclusively, blow up the pipeline Kirkuk - Ceyhan 30 times during 2013 and worn-line result of the bombings repeated and forced the government to construct a substitute font,

and the southern provinces where the most important oil fields, began considering contracting with companies private security to protect oil installations.

The problem is not confined to impede the development of the oil industry They also include a way use of petroleum quarter and excessive dependence on oil without the other sectors of the economy and the prevalence of a culture of corruption.

aimed at Iraqi oil drawn plans to increase crude oil production to about 12 million barrels per day in 2017.

The Oil Ministry signed a technical service agreements federal long-term (25 years old) with major international oil companies to reach this record level of production, and signed the Kurdistan Regional Government and international oil companies production sharing agreements.

But a clear and build on what has been achieved so far, that the level of production would range around six and nine million barrels of oil per day, which, although the form of a high rate of Iraq, still without ambitions, which ruled contracted to develop giant fields with international companies during a relatively short period.

sector suffers Iraqi oil concerns and many obstacles impede growth in natural form, such as the failure of the system of government in the order of things, the country knowingly and wisdom, and engage and failure to maintain security,

and increased the fear factor when political officials of terrorism, especially with the threat of the organization «base» to launch an attack on the Green Zone , similar to Balhjomin the prisons of Abu Ghraib and Taji.

The oil sector is suffering like other sectors, lack of understanding on the federal system and conflicts of interest, what Shell's work in the country.

The lack of understanding of this to prevent the enactment of the oil and gas since February 2007 until the present day, has also led to the emergence of two industries Petrolitin متنازعتين in the country, governed by conflicts and harassment and interests between senior officials, in the absence of any attempt to reach a common concepts to work.

resulted dispute between the two industries not to establish a national oil company will support the ministries of the federal and regional oil together, but the availability of a minimum requirement of understanding between the ruling political forces about the nature of federalism.

It is noteworthy that the long-term service agreements between Baghdad and international companies require joint committees of companies and the Iraqi side, supposed to represent the national oil company.

He also states that the role of the national oil company also includes the coordination of work and supervision of the national companies («SoC» and «the North Oil Company»).


This caused controversy in the strange case of its kind since developed international oil companies contracting with the Kurdistan region on a blacklist preventing them work in the rest of Iraq.

This is expected to escalate the dispute with the completion of the construction of a separate pipeline from the field 'Taq' to nearby Fushhabour of the Turkish border and is expected for completion end of 2013.

فالخط would mean that the Government of the Territory of Iraqi oil will be issued separately from the Iraqi government in violation of the Constitution, which stipulates that the government is only responsible for the export of oil.

The production capacity of the Kurdistan region about 300 thousand barrels per day currently, based on discoveries achieved, according to statements by officials petroleum in the Kurdistan Regional Government, is expected to increase production capacity to about one million barrels per day in 2015 and about two million barrels per day by 2019. * Adviser to the bulletin « Mays »oil.

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