Iraq Output Could Double To 4mbpd In 5 Yrs

Iraq Oil Output Could Double To 4M Barrels A Day In 5 Yrs - IHS

by Lananh Nguyen
Apr 18, 2007
LONDONxxx

Iraq's oil production could double to 4 million barrels a day in the next five years if the security situation stabilizes in key producing regions, data provider IHS Inc. (IHS) said Wednesday. xxx

"There is a very straightforward path to improving production capacity (in Iraq)," said Ron Mobed, president and chief operating officer of IHS's energy segment. xxx

Mobed said that pipeline repairs, better reservoir management and infrastructure investment could allow the country to double its oil and gas output, unless violent conflict there escalates further. xxx

"As for the investment required, the Iraqi Ministry has estimated that it could take $20 (billion)-$25 billion depending on the level of repair and modernization needed to double current production levels," Ed Mattix, IHS vice president of corporate communications, said in an e-mailed statement. xxx

In its new study of Iraq's oil reserves, IHS estimated that the country has 116 billion barrels of proven and probable oil reserves, the third highest in the world. Iraq's western desert potentially held an additional 100 billion barrels of oil reserves, IHS added. xxx Aside from the political and security risks, investment in Iraqi oil was appealing due to the country's geology and its commercial terms, Mobed said. xxx

This year, the Iraqi government is expected to launch a bid round for 65 exploration blocks, and 78 fields are also to be offered for development, according to IHS. xxx

Mohammed Zine, IHS regional manager for the Middle East, said: "The cost to produce oil in some Iraq fields is less than $2 per barrel according to our estimates and investments involved in developing the fields are minimal." xxx

Prior to Iraq's war with Iran in 1980, the country had a production capacity of 3.6 million barrels of oil a day. It was 3.2 million barrels a day before the first Gulf War in 1990 and 2.7 million barrels per day before the start of the most recent conflict. xxx

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