BAGHDAD (AP) — Iraq's newly appointed oil minister on Monday said the country's daily oil production has increased by about 100,000 barrels a day, exceeding 2.6 million barrels per day for the first time in 20 years.
Abdul-Karim Elaibi said Iraq's production of crude will continue to rise and will reach its planned, higher targets "sooner than expected."
"Today, our production exceeded 2.6 million barrels a day," Elaibi told reporters during a ceremony to formally put him in charge of Iraq's oil ministry after the country's new government was sworn in last week.
"We haven't reached this figure since 20 years ago," Elaibi said.
Last week, Elaibi also reported an increase by 100,000 barrels a day to 2.5 million barrels a day, saying it was a significant jump in a long while.
Iraq has awarded 15 oil and gas deals since 2008 to international companies in the first major investment drive in more than three decades aimed at strengthening the country's battered energy industry.
The crude-rich nation plans to raise its daily output to about 12 million barrels by 2017.
The increase in production is vital to bringing the war-torn country the sorely needed cash for reconstruction.
Oil revenues make up nearly 95 percent of Iraq's budget.
Falah al-Amiri, the head of the state oil marketing organization, SOMO, said the country's oil exports will be increased starting next month. They will exceed 2 million barrels a day from the nearly 1.9 million barrels a day, al-Amiri said.
Since the 2003 U.S.-led invasion that toppled Saddam Hussein's regime, Iraq — the holder of the world's fourth largest oil reserves of 143.1 billion barrels — has struggled to reach the level of about 3 million barrels it produced in late 1980s before it invaded neighboring Kuwait.
The industry has been hampered by heavy damage to oil facilities during Iraq's decades of wars and international sanctions following Iraq's 1990 invasion of Kuwait.
Copyright © 2010 The Associated Press. All rights reserved.
BUT WAIT...I seem to remember...............
FLASHBACK!!!!!!
Exxon, Dutch Shell Win Iraq Oil Contract
Third Development Deal in the Last Week between Iraq and a Foreign Oil Corsortium
(CBS/iStockphoto)
FAST FACTSIraqLearn about the people, economy and history.
The deal to develop the 8.6 million West Qurna Stage 1 field is the third such agreement in less than a week between a foreign oil consortium and Iraq, which sorely needs foreign company expertise and funding to revive an oil sector hammered by years of neglect, sanctions and, most recently sabotage.
Assem Jihad told The Associated Press the West Qurna deal will be initialed later in the day, and would then be forwarded to the Cabinet for approval.
Under the terms of the 20-year contract, the two companies are targeting a more than sevenfold increase in output in seven years - from the current 280,000 barrels per day to 2.1 million barrels per day. The companies will receive $1.9 for every barrel they produce, and the contract could be extended for another five years.
Although Iraq sits on the world's third-largest oil reserve, with at least 115 billion barrels, the country is producing and exporting far below its potential. Daily production has ranged between 2.3 million and 2.4 million barrels per day, with exports at slightly less than 2 million barrels per day.
Foreign companies are seen as key to reviving the sector and ramping up output, with the increase crucial for Iraq as the nation relies on oil exports for 95 percent of its foreign revenues.
The latest deal comes two days after Iraq finalized a deal with British oil giant BP PLC and China's CNPC to develop its biggest oil field, the 17.8 billion barrels Rumaila in the south.
BP and CNPC - who were the only winners in a much-touted, but ultimately disappointing oil licensing auction in June - will be paid $2 per barrel produced to raise production from the current 1 million barrels a day to 2.85 million barrels a day.
On Monday, a consortium led by Italy's Eni SpA signed an initial agreement to develop the 4.1 billion barrel Zubair oil field, which lies near West Quran and Rumaila.
Eni and its partners, the U.S.'s Occidental Petroleum Corp. and South Korea's KOGAS, aim to boost output to 1.1 million barrels per day within seven years, up from the current 200,000 barrels per day.
According to Iraqi Oil Minister Hussain al-Shahristani, the combined project output from Rumaila, West Qurna Stage I and Zubair will exceed 6 million barrels a day in six to seven years, with the companies expected to invest a total of about $100 billion in the projects.
Two other consortiums were bidding for the West Qurna Stage 1 project - one headed by Russia's Lukoil and U.S. giant ConocoPhillips and the other was headed by China's CNPC.
The field was among five oil and two gas fields left over from the June bidding round, Iraq's first such oil auction in more than 30 years.
Iraq is planning a second bidding round on Dec. 11-12. Forty-five international oil companies will compete for development right for 10 oil projects.
No comments:
Post a Comment