Iraq's oil production capacity could double in near term, says IHS
Posted: 23 April 2007
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There could potentially be another 100 billion barrels of oil in the Western Desert of Iraq, according to an atlas that will be released by data provider IHS on May 9.
The Iraq Atlas, which gives an overview of known prospects and fields in Iraq , estimates oil reserves at up to 116 billion barrels, ranking the country number three in the world.
A total of 435 undrilled prospects and non-commercial discoveries, and 81 producing fields and commercial discoveries are included in the report.
"In 2007, the Iraqi government is expected to launch a bid round for 65 exploration blocks and 78 fields are also to be offered for development," said Ron Mobed, president and chief operating officer of the energy segment of IHS. "The Iraq Atlas will help companies evaluate these blocks and fields quickly and accurately."
The Iraq Atlas estimate of up to another potential 100 billion barrels of oil reserves is largely based on the establishment of new play concepts in the Western Desert of Iraq, which have been generated from a recent study of the Western Arabian Platform.
The Western Desert of Iraq is widely regarded as being substantially under explored with only one commercial discovery in the region largely because Iraq has had a surplus of oil to date and little incentive for exploration.
"Most of Iraq 's oil production comes from the south of Iraq and is exported via the Persian Gulf because of repeated sabotage attacks on facilities in the north," said Mohamed Zine, IHS regional manager for the Middle East . "This has resulted in a current production capacity of two million barrels of oil per day. However, the Iraq Atlas estimates indicate that given a stable political and civil environment, Iraq has the potential to produce four million barrels a day in the near term if necessary investments are made in repairing and modernizing facilities."
Zine added: "The cost to produce oil in some Iraq fields is less than $2 per barrel according to our estimates and investments involved in developing the fields are minimal."
Prior to Iraq 's war with Iran in 1980, the country had a production capacity of 3.6 million barrels of oil per day. It was 3.2 million barrels per day before the first Gulf War in 1990 and 2.7 million barrels per day before the start of the most recent conflict. |
