View Full Version : Iraq to Invest $130 Billion in Upstream Oil Sector Over 5 Years

03-16-2013, 03:23 PM
By Kadhim Ajrash - Mar 16, 2013 2:50 AM PT

Iraq (http://topics.bloomberg.com/iraq/) plans to spend $130 billion on the country’s upstream sector over the next five years to help raise production capacity to 9 million barrels a day, Oil Minister Abdul Kareem al-Luaibi said.
The country will allocate $18 billion to raise natural gas output and $25 billion to expand refinery capacity, al-Luaibi said at a conference in Basrah today. Iraq forecasts $600 billion in revenue from the oil expansion, he said.
Iraq, the Organization of the Petroleum Exporting Countries’ second-largest producer, is boosting output and upgrading energy facilities hobbled by decades of war and economic sanctions. Production swelled by 24 percent last year, and Iraq overtook Iran (http://topics.bloomberg.com/iran/) in June to become the biggest producer after Saudi Arabia in OPEC.

Iraqi output rose 6 percent to 3.14 million barrels a day in February, up from 2.97 million barrels the previous month, according to the the Paris-based International Energy Agency. This was the first time in two months that it exceeded 3 million barrels a day, mostly as a result of increased tanker exports from Basrah in southern Iraq, the agency said.
The nation’s oil exports in February reached 2.54 million barrels a day, al-Luaibi said. Production from Iraq’s Majnoon oilfield will reach 100,000 barrels a day in May and 200,000 daily by the end of the year, he said.
Iraq holds the world’s fifth-biggest crude reserves, according to BP Plc (BP/) (http://www.bloomberg.com/quote/BP/:LN) statistics that include Canada (http://topics.bloomberg.com/canada/)’s oil sands.