Iraqi oil production will clash with the OPEC controls

[Stillw8n]

05/10/2011 18:45

Baghdad, October 5 / October (Rn) – Iraq seeks to raise its production of crude oil to about 12 million barrels per day by 2017 after it concluded contracts with international energy companies to develop 11 oil fields discovered untapped through three rounds of licenses.

Regardless of the access of production to the stated goal, the Iraqi experts in the field of oil development say that these plans will collide in the future actions of OPEC that is part of Iraq in its membership.

He says a member of the Transparency Initiative for Energy Jalal Yasiri Kurdistan News Agency (Rn) that “the lifting of oil production is the internal of Iraq determined by the political oil higher, but the export of more than 3 million barrels per day, will collide with the political OPEC and procedures in the discharge of crude oil to world markets.”

It is believed that “Iraq needs to set up a supreme committee comprising experts and technicians assigned by the ministry to review policy and routing oil to absorb the global market for crude oil of Iraq.”

Believes that “no fear of falling oil prices to below $ 90 a barrel because of the turmoil in the countries of the region, at least in the next six months.”

The current production of Iraq, about 2.7 to 2.8 million barrels per day of crude oil, and relies on imports to cover the financial budget by up to 95 per cent.

Iraq expects to increase its production to three million bpd by the end of this year and will add 500 thousand to a million additional barrels a day next year.

The director of the Iraqi Center for Studies of oil Jihad Silverline (Rn) that “Iraq is unable to reach production to 3 million barrels per day, even if they put stents in the port of al-Amaya export and export, which accommodate an additional 900 thousand barrels.”

He adds that “the development of the pillars of export is important in increasing oil exports, but will fail to provide a line carrier to Syria because the Syrian government’s preoccupation with internal political turmoil.”

It is expected to begin operation of Iraq and one of three new ports for the export of oil in the Gulf in the first January in the development of a major effort to build export capacity for the disposal of increased production from the southern oil fields.

He expected Iraq initially increase production capacity to 12 million barrels per day by 2017, but Oil Minister Abdul-Karim and coffee, said recently that the level of eight to 8.5 million barrels per day will be the appropriate target more, and that the period required to achieve this may extend to 13 or 14 years.

Silverline believes that “if the price of oil down to below $ 85 a barrel, it would be difficult to manage the 2012 budget deficit the government plans to increase the prices of processed oil.”

Government figures indicate that Iraq’s budget for next year will amount to 131 trillion Iraqi dinars (about $ 112 billion), up 36% from the current year budget and a deficit of 23.3 trillion Iraqi dinars (20 billion dollars).

The government says the deficit will be met from cash retained from the current year budget 2011 is internal and external borrowing and the rate of savings is expected to increase selling prices or increased oil production or borrowing from the IMF and World Bank.

He said Iraqi Deputy Prime Minister for Energy, Hussain al-Shahristani said on Wednesday that it would be “difficult” to accept the revelation of world oil prices from $ 90 a barrel, in a sign that the decline in prices began to cause concern to some members of OPEC.

He sees the former overalls oil and branch manager Rene Latte world’s oil in Baghdad Baha satisfied that “the Oil Ministry to coordinate on a daily basis with the Organization of Petroleum Exporting Countries and give its plan to raise production and exports to OPEC for information and does not have any threat to the inability of OPEC to sell issued by Iraq’s oil with the end of this year. “

He says (Rn) that “the political oil in Iraq goes well and faced any legal concerns or technical, but need constant review and development of the infrastructure of oil fields and provide safety for their workers, especially those entered into licensing rounds, three.”

The OPEC basket includes 12 types of crude oil is a mixture deserts of Algeria, Girassol Angolans and Iranian Heavy, Basra Light Iraqi crude export Kuwaiti Sidr Libya and Bonnie light Nigerian crude maritime country and Arab Light Saudi Murban UAE and Mary from Venezuela and Oriente from Ecuador.

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