Turning around Iraq's oil sector

[Stillw8n]

Turning around Iraq's oil sector
Baghdad is seeking investors to build refineries and develop oilfields as part of measures to cut dependence on imported energy

By Aya Lowe, Staff ReporterPublished: 00:00 September 26, 2011
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Years of conflict have left Iraq's oil infrastructure crippled. However, as Iraq's approved $37 billion (Dh135.9 billion) programme to upgrade the country's infrastructure and security requirements starts rolling out, Iraq will become one of the biggest investment opportunities for companies in the energy sector.

Iraq sits on the third largest oil reserves in the world and pumps 2.75 million barrels per day (bpd) of crude. This figure is projected to reach 7 million bpd by 2017. However, because of its damaged infrastructure and security concerns, foreign companies find it difficult to set up shop and invest in the country. As a result, despite its huge oil reserves, Iraq imports about 10 million litres of petrol each day to meet domestic demand. According to US Energy Information Administration data, Iraq generates the majority of its revenue by exporting oil and importing about 30 per cent of the petrol it uses.

Iraq is now actively seeking foreign investment to build refineries and develop its oil and gas fields to avoid importing petrol and diesel.

"Projects would raise Iraq's capacity to transform crude into fuels by 900,000 barrels a day," said Abdul Kareem Luaibi, Iraq's deputy oil minister.


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