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July 18, 2023[You must be registered and logged in to see this link.]
Baghdad / Obelisk Al-Hadath: The British Oil Price website said that Iraq intends to increase oil production to more than five million barrels per day, indicating that this could be a prelude to increasing oil production to 13 million barrels per day if it is dealt with properly, and this will make Iraq is the largest oil producer in the world.
According to the Energy Information Administration, it contains 145 billion barrels of proven crude oil reserves (nearly 18 percent of the total in the Middle East, and the fifth largest in the world). this planet).
The report added that the Iraqi Ministry of Oil raised its own figure for the country's proven reserves to 143 billion barrels, but at the same time it issued official reserves figures and stated that Iraq's undiscovered resources amounted to about 215 billion barrels.
Given the true size of Iraq's oil reserves - and the fact that the average cost of lifting per barrel of oil in the country is $1-2.
What kind of oil production can be reasonably expected?
In 2013 the Integrated National Energy Strategy (INES) was produced, which analyzed in detail three realistic profiles of oil production in Iraq and what each would entail. The best case scenario for INES was to increase crude oil production capacity to 13 million barrels per day in 2017, to reach Peaking at about that level until 2023, and then finally tapering back to around 10 mb/d for a long time after that.
The medium-term production scenario for Iraq was to reach 9 million barrels per day in 2020, and the worst case scenario for INES was for production to reach 6 million barrels per day in 2020, so the figure of 5 million barrels per day that was announced last week can be considered The first easily achievable starting point towards these numbers.
Iraq's oil minister, Hayan Abdul Ghani, said last week that the country's oil production capacity already stands above that level - at 5.4 million barrels per day - although it still only produces between 4.3 and 4.5 million barrels per day overall.
With such vast reserves and plans on how to convert them to up to 13 million barrels a day, why isn't Iraq already producing much more oil than it already has? But the reason is the ongoing rampant corruption that lies at the heart of Iraq's oil and gas industry.
Transparency International (TI) has shown in many of its publications its Corruption Perceptions Index that Iraq usually appears in the worst 10 countries out of 180 countries in terms of its size and scope.
According to Transparency International, massive embezzlement, procurement fraud, money laundering, oil smuggling, and pervasive bureaucratic bribery have led the country down international corruption rankings.
The report indicated that the sums of money lost by Iraq could have financed all the major projects needed to increase oil production by at least 7 or 8 million barrels per day to start with, especially the Joint Sea Water Supply Project (CSSP), of which Iraq lost 14 $448,146,000” from the beginning of 2011 to the end of 2014 as cash compensation payments to international oil companies and other entities.
Translated by Muhammad Al-Khafaji
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