Those who expect a doubling of Iraqi oil production to 6 mb/d by 2020 should pray for enduring peace and social justice in this war-torn country. Iraq’s overdue integration into OPEC’s quota system will also present challenges in the context of geo-political rivalries between Saudi Arabia, Iraq and Iran.
(Reuters) – Iraq’s Sunni insurgents are targeting its main northern oil pipeline, undoing plans for a massive increase in exports as violence reaches levels unseen since the darkest days of civil war.
“At least 400 angry protesters breached the main gate and broke into West Qurna oilfield,” an official at West Qurna Phase 2 told Reuters. “Most of the foreign and local staff left the field as a safety measure and work was significantly affected.”
- Rumaila in the South is nearing the 50% depletion mark
- Kirkuk in the North is beyond the half way mark at 62%
- Both these fields have produced around 80% of the cumulative total so far
- Production growth therefore solely depends on new fields like West Qurna and Majnoon
(Reuters) – Exxon Mobil has allocated $1.65 billion to develop Iraq’s West Qurna 1 oilfield in 2013, up from $1.6 billion last year, the head of the joint management committee for the field said.
“The Chinese are the biggest beneficiary of this post-Saddam oil boom in Iraq … They need energy, and they want to get into the market.”