New Iraq cabinet to focus on oil laws

[k98nights]

New Iraq cabinet to foucs on oil laws

Iraq's new government will prioritise work on new hydrocarbon legislation to reassure international oil companies and integrate oil contracts signed in Kurdistan, a government spokesman said today.

29 November 2010 12:46 GMT

"Among the next government's priorities will be to approve legislation of long-awaited oil and gas law through parliament," Reuters quoted Ali al-Dabbagh as telling a news conference in London.

"This will provide a legal environment that reassures international oil companies (IOCs). Such legislation should also bring oil contracts signed by the Kurdistan region in line with the central government process."

Separately, former Iraq Iraqi Oil Minister Thamir Ghadhban said the country could more than triple oil output by 2017, effectively cutting previous estimates but giving a figure which would nevertheless make Iraq one of the world's top producers.

Iraq has signed deals with international oil companies following auctions last year that could in theory take capacity to 12 million bpd by 2017 - a figure that most analysts view as unrealistic.

"I expect we will reach a capacity of 8 million barrels per day within the next six-seven years," Reuters quoted Ghadhban as saying today.

Analysts have cited undeveloped infrastructure and security concerns as the key obstacles preventing Iraq from reaching output of 12 million bpd - which would make it the world's largest oil nation or put it at par with current leader Saudi Arabia.

The country, which sits on some of the world's largest oil reserves, has struggled in the past years to push its output even close to 3 million bpd it saw in late 1980 before it invaded Kuwait and saw a US military retaliation.

A Reuters poll showed last month Iraq's crude oil output would rise to 2.8 million barrels per day by 2011 from roughly 2.5 million bpd now and reach only 4.6 million bpd by 2015.

Oil Minister Hussain al-Shahristani's has said he expects 4 million bpd in three years' time and that there is no need for Iraq - for now the only Opec member exempt from its system of output curbs - to have a production target until then.

Published: 29 November 2010 12:46 GMT | Last updated: 29 November 2010 12:53 GMT

http://www.upstreamonline.com/live/article237964.ece

[lechesuerte]

Great ...thanks for the post Woody! Come on guys let's focus in and knock it out of the park! GO RV in 2010!!!

[rick_jb]

Thanks for the post. GO RV