Governing Oil & Gas Assets: A Call to Reconsider

[Noosa]

Governing Oil & Gas Assets: A Call to Reconsider

1. Constitutional Articles Governing Oil and Gas Assets

Article 108*1 states that “oil and gas are the property of the nation (people) of all the Regions and Governorates”.

Article109* states:

1st “The Federal government development will administer (manage) the production of oil and gas fields in cooperation (consultation) with the governments of the producing Regions or Governorates,” “provided that the revenues will be distributed in a manner compatible with the demographical distribution all over the country.”

Full article
http://www.iraqdirectory.com/DisplayNews.aspx?id=1464

[Lonestar]

Interesting reading and supports lots of money for many years to come. It also supports the fact that in the future they will run OPEC I think.

[tmorr37]

Iraq today has, on a global basis, the highest proven reserves or total oil resource reserves to production ratio (a measure of life expectancy) of 157 years and 452 years respectively (when adding the potential to the proven reserve). At a production rate of 5mn b/d it would still take 62 years and 180 years respectively. Couldn’t Iraq then hold on unnecessary long-term exploration production-sharing agreement (PSA) contracts for a few years or at least until stability prevails and big powers’ pressure subsided? In the meantime, the industry can concentrate its capital investment and limited human resources on production capacity growth to bring in the necessary revenue