Iraq's oil minister stresses commitment to OPEC production cut

Iraqi Oil TankerIraq 'committed to OPEC production cuts.' (Image source: Ibrahimuo/Commons)Iraq remains committed to OPEC production cuts while standing ready to satisfy global demand growth when the stock overhang disappears, said HE Jabar Ali Al-Luaibi, Iraq’s Minister for Oil, at a recent conference in London

However he urged that the country’s leading role in the fight against Isis, which has taken a devastating toll on the Iraqi economy, should be “taken into consideration when assessing Iraq’s oil and gas industry and policies for current and future development.”

The Minister highlighted Iraq’s ambitious plans to develop the gas sector, with aim of producing 5,000 bcm per day dry gas, 20,000 tonnes per day LPG and 15,000 bpd condensate and other liquids by 2040. Iraq has concluded contracts with international companies to modernise the industry and reduce gas flaring, and is proceeding with new NGL, LPG and LNG plants, he said.

Consultants are advising on the revision of the terms of current contracts, and the World Bank is carrying out an analysis of Iraq’s gas industry. Iraq is also looking to conclude a contract with Kuwait for the export of raw gas, starting with 50 Mmcf a day, with the potential to eventually reach 500 Mmcf a day, he said.

The Minister also outlined plans to improve capacity building, restructure the oil and gas sector and conclude joint ventures in areas such as pipeline and tanker development. He added that Iraq is “opening the doors wide for investment” to increase refining capacity, and is tendering five new refineries on an investment basis in addition to upgrading existing refineries. 

He stressed the country’s dependence on the energy sector, with oil and gas revenues accounting for between 83-85 per cent of total revenues. “Though this sector we hope our country will emerge as a strong, prosperous and united Iraq,” the Minister concluded. 

 

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