Iraq Oil Report

Iraqi oil production has risen to its highest level since the 2003 invasion on the back of improved security across the country, according to a new US government report.

Iraq pumped an average of 2.43m bpd between April and June, according to the Special Inspector General for Iraq Reconstruction, writes Demetri Sevastopulo for The Financial Times.

The report by the Special Inspector General for Iraq Reconstruction (SIGIR) said the combination of record production and high global oil prices would likely provide a windfall to the Iraqi government, which previously forecast that 2008 oil revenues would be $35bn

A new CNN/Opinion Research Corp. poll released Thursday indicates that about two-thirds of Americans believe that U.S. oil companies and foreign countries that produce oil are major causes of higher gas prices.

Just over half say that the Bush administration and the war in Iraq are major causes of high fuel prices. Just as many cite the ban on additional offshore drilling.

Iraq plans a ‘Gas City’ in Kurdistan region in a bid to spur foreign investment of over USD 40 million and create job opportunities, the Iranian Press TV reported.

Gas City is a joint venture between Emirati companies Dana Gas and Crescent Petroleum. It will be built on a 461 million square feet site (nearly 43 million square meters) assigned by the Kurdistan Regional Government.

“The Kurdistan Gas City is an enormous step as we work towards strengthening the Iraqi economy and bettering the livelihoods of the Iraqi people,” the executive chairman of Dana Gas, Hamid Jafar stated.

Royal Dutch Shell admitted making little progress in agreeing short-term oil service contracts in Iraq in recent weeks but said it was hoping for “entrepreneurial” natural gas deals.

Iraq had hoped to sign one to two year deals, under which Western oil majors are paid a fee to help boost oil output, early this year, but nothing has yet been agreed despite the passing of a June 30 deadline, writes Tom Bergin for Reuters.

A political turf war is threatening the stability of Iraq’s biggest cash cow: the embattled but so-far dependable South Oil Co.

After chasing gunmen off the streets of the southern oil city of Basra this year, Iraq’s central government is trying to reassert control over South Oil, the state-owned oil company based there. In May, Baghdad said it was reassigning the company’s top executive, Jabber el-Leaby, to an advisory position at the Oil Ministry — a move many observers see as a demotion, writes Gina Chon for The Wall Street Journal.

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