Oil Ministry seeks to increase oil output to 2.8 million bpd soon

[Noosa]

Oil Ministry seeks to increase oil output to 2.8 million bpd soon

http://www.iraqdirectory.com/DisplayNews.aspx?id=1103

[JJLL]

Thanks for the link.

"Experts have estimated needed fund for renovation of the Iraqi oil sector at 35 billion dollars, he said, indicating that this sum is needed to increase the production to 5-6 million bpd by 2010."

So plans to more than double their current oil output in four years... not too bad.

[investindinar]

If the Iraqis are able to increase oil production to 5 million bpd, just imagine what it will do for the PV of their government revenues. The higher the PV, the higher the valuation of the dinar. I expecting at least a 100:1 exchange rate if the NID is still on a flexible exchange rate by 2010. If it is 'freely floated', then we're looking at a much higher valuation!

Go dinar!

Sincerely,

investindinar

[Hue Mi]

"Iraq is currently exporting some 2.6 million barrels of crude oil per day and aspires to boost the export of oil to 2.8 million bpd in the near future, a visiting Iraqi official said on Wednesday."

This thread agrees with IcarusII's post http://www.investorsiraq.com/179248-post4.html

For discussion, at a WAG of $50 / barrel profit.
At 2.6 mpd, NET annual income is over $47B.
At 2.8 mpd, NET annual income is $51B.

If Iraq's budget is $24B / year, the WAG estimated surplus is $23B or $27B per year.

Wow!

[investindinar]

If Iraq's budget is $24B / year, the WAG estimated surplus is $23B or $27B per year. Wow!

Wow is right. This year, 2006, is supposed to be the first year in many years that the GoI's budget is operating in the surplus.... Revenues minus Govt Transfers is greater than zero. That's another bullish sign for the NID! The next big hurdle is when GDP exceeds govt debt (2008). This is another reason why I anticipate a slow and gradual revaluation to begin this year (2006).

Sincerely,

investindinar