Iraq Oil Report

Iraq said it was resuming exploration of its immense oil reserves after a break of nearly 20 years due to crippling UN sanctions, saying it hopes to double its proven deposits of crude.

“Today the Iraqi oil ministry celebrates a return to work by Iraqi oil exploration teams after 20 years of interruption,” ministry spokesman Assim Jihad told AFP.

Iraq and China are set to revive a US$1.2 billion oil deal that was canceled after the 2003 U.S.-led invasion, the Iraq’s oil ministry said.

An initial agreement with China is expected to be signed at the end of August to develop the billion-barrel Ahdab oil field south of Baghdad, the ministry said in a statement.

“Iraq and China are keen to show their cooperation by finalizing an agreement on developing the Ahdab oil field,” the AP reported.

Italy’s biggest oil and gas group Eni and top officials from the Iraqi Oil Ministry met in Baghdad to discuss future cooperation in the oil and gas business, Eni said.

“The meeting was focused on “potential cooperation on specific projects in the upstream, refining, drilling and oil and gas transportation sectors in Iraq”, Eni said in a statement carried by Reuters.

Ministry of Oil announced that Iraq exported about 410 million barrels of oil in the first 7 months of the current year, with a value of 43 billion dollars. Oil Ministry spokesman Issam Jihad affirmed that it the things carried on as they are, Iraq income would exceed 70 billion dollars this year.

On the other hand, Ministry of Oil announced that an oil team started works in Al Gharaf field in Al Nassiriah province inaugurating oil exploring operations after a 20 years stop, the Iraqi daily, al-Sumaria said.

Iraq’s oil industry is currently passing through a critical phase caused by political disputes. As such, it becomes impossible to determine which side is truly in charge of this vital sector.

The federal ministry of oil is supposed to elaborate policies as well as negotiate and conclude contracts with international oil companies. Meanwhile, the national oil company and its subsidiaries are supposed to run and monitor approved projects. In reality, however, the current situation differs completely, says Walid Khadduri for al-Hayat.