It海角吃瓜网檚 a bold claim to make: that you are now the world海角吃瓜网檚 second largest holder of conventional oil reserves.
But it海角吃瓜网檚 one that Iraq made late last year when it announced that it had increased the size of its proven oil reserves to 143.1 billion barrels of oil 海角吃瓜网� a figure that pushes the war-torn nation past Iran to become the world海角吃瓜网檚 second largest holder of conventional oil reserves.
If Baghdad海角吃瓜网檚 projections are to be believed, Iraq could match Saudi Arabia海角吃瓜网檚 daily crude output of 10 million to 12 million barrels within the next seven years, up from just 2.5 million today. What海角吃瓜网檚 more, following the successful tender for new oil exploration work in December, the country海角吃瓜网檚 oil minister, Hussain al-Shahristani, made it clear that Iraq will ramp up production regardless of any restraints agreed upon by OPEC.
Yet unlike the other oil producing giants, Iraq faces an uphill battle to overcome many challenges if it is to stand alongside Saudi and Iran. The country is still plagued by its war-torn backdrop and all the issues that come with that: a wealth of security problems, an under-developed infrastructure of limited capacity, a poor regulatory framework, limited availability of trained personnel and ongoing political instability.
This, however, hasn海角吃瓜网檛 been enough to deter international oil companies (IOCs) such as BP, Shell and the National China Petroleum Company, major players who have been keen to assert their presence in any of the 16 mammoth fields that Iraq opened up to international oil companies in 2009.
According to Gavin Jones, founding partner of Upper Quartile, a business specialising in post conflict economic reconstruction, Iraq has little option but to open the country up to foreign investment. 海角吃瓜网淏y enlisting the help of IOCs, they can provide the necessary expertise, technology and training that Iraq海角吃瓜网檚 oil sector so desperately needs.海角吃瓜网�
But, Jones admits, it isn海角吃瓜网檛 going to be easy. 海角吃瓜网淲hat you海角吃瓜网檝e got in Iraq is basically 30 years worth of sanctions followed by six years of war. And in any environment like that it海角吃瓜网檚 going to be difficult, especially when you海角吃瓜网檝e got a huge array of very big, very sophisticated, very slick international companies piling over the parapet, trying to work with a government that has been isolated for 30 years.海角吃瓜网�
Iraq海角吃瓜网檚 ports, for example, have started to buckle under the demand of the arriving oil majors, their service companies and the vast amounts of equipment they海角吃瓜网檙e bringing with them. 海角吃瓜网淭he cranes aren海角吃瓜网檛 big enough, the gate out of the port isn海角吃瓜网檛 big enough to take the volume of lorries, there海角吃瓜网檚 nowhere to leave the stuff when you get it outside the port, and the free zone on the other side has been talked about for years, but there海角吃瓜网檚 just no infrastructure.海角吃瓜网�
On the export side, there海角吃瓜网檚 also the issue of pipelines. Iraq海角吃瓜网檚 ageing pipeline network will need major upgrades, particularly the southern export pipelines, which send 80% of Iraq海角吃瓜网檚 total oil exports to the global market. Experts have said that these pipelines can handle no more than 1.6 million bpd without risk of rupturing. 海角吃瓜网淭he pipelines need to be refurbished to a level where they can transport the anticipated short-term increase, and that海角吃瓜网檚 about 10 to 15%. And there certainly needs to be a metering system put in place,海角吃瓜网� says Jones.
Security is another pressing issue for companies keen to address a presence in certain areas of Iraq. One solution to this is the 海角吃瓜网榲illage of business海角吃瓜网� that an Iraqi firm is planning to build next to Baghdad airport. The mini city will provide a secure environment in which business people can live and work in a safe environment. The US$ 250 million complex is due for completion in three to five years and will be home to apartments, hotels, offices, restaurants, cafes, shops and parks.
They aren海角吃瓜网檛, says Jones, insurmountable challenges. 海角吃瓜网淚OCs will overcome them, because they海角吃瓜网檝e done it before in Nigeria, in Pakistan, they海角吃瓜网檝e done it everywhere else, and they海角吃瓜网檒l complain about it and they海角吃瓜网檒l try and leverage stuff out and the contracts will be changed and adapted and manipulated. But the pipelines are almost there. The port is going to be a shambles for a number of years to come, but people will manage to get stuff through. Not at the right times, but it will sort of work海角吃瓜网＝浅怨贤鴿
It海角吃瓜网檚 an issue that will no doubt be on the agenda at the , which takes place at Raffles, Dubai from 12-14 May. This closed-door summit, hosted by GDS International, features some of the leading voices in MENA海角吃瓜网檚 oil and gas sector, including Faisal Al Thani, Acting Manager Director Qatar of Maersk Oil; Rasha El Waraky, CIO of BP, John Roper, Head of Middle East and GM of E.ON; Otto Garringer, GM of OMV Iraq and Wadda M. Ali Shareef, Director General of Iraq海角吃瓜网檚 Ministry of Oil.
Along with information security, other key topics for discussion include Iraq海角吃瓜网檚 transformation, compliance in the oil and gas sector, cutting edge communications and optimum exploration techniques.
is an exclusive C-level event reserved for 100 participants that includes expert workshops, facilitated roundtables, peer-to-peer networks and coordinated meetings.