Iraq Oil and Gas Industry

June 29, 2010Oil and Gas Industryby EconomyWatch

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As per latest reports on Iraq oil and gas industry Videsh Limited, which is international investment division of Oil and Natural Gas Corporation, biggest oil producer of India, would be placing bids for certain exploration blocks that have been put up for auction by Iraq.

There would be a couple of rounds of bidding. Second round had been opened by Iraq oil and gas industry on 31st December, 2008. In this particular bid 11 oil and gas exploration blocks would be auctioned.

When Iraq had initiated auctions prices of Iraq oil and gas industry products had gone down by 70 percent. Some other major oil and gas companies like ExxonMobil, Chevron Corporation, Royal Dutch Shell, Sinopec and British Petroleum.

As of 2009 maximum capacity of oil reserves of Iraq oil and gas industry is 115 billion barrels. A significant amount of this capacity is being produced after Saddam Hussein, deceased former Iraqi prime minister, had done away with oil contracts almost 10 years ago.

At present Iraq oil and gas industry is looking to open its oil fields again and create more revenue that would ultimately assist in rebuilding national infrastructure that has been reduced to shambles by war.

Iraq oil and gas industry occupies a dominant position in Iraq’s economy. According to Business Monitor International, oil and gas industry of Iraq by 2012 would be responsible for nearly 8.25% of total oil demand for Middle East Asian countries and would account for 10.89% of total oil supply. Special Inspector General for Iraq Reconstruction (SIGIR) in 2007 made a detailed study of oil and gas industry in Iraq on procurement, transportation and storage of crude as well as refined oil. Studies of oil and gas industry at Iraq were also conducted on issues such as oil pricing, improvement of budget allocation, and combating corruption and smuggling.

Oil and Gas Journal stated that total oil reserve of Iraq oil and gas industry stood at 115 billion barrels as per estimates of 2001. However further studies by geologists in southern and western regions have gauged an additional reserve of 45 to 100 billion barrels of crude oil. Seventy to eighty per cent of entire oil reserves of Iraq oil and gas industry are concentrated in its southeastern region. Rumailla North and South, Al-Zubair, West Qurna, Missan, Luhais and Majnoon are predominant oilfields in this region, while Kirkuk, Bal Hassan, Jambur and Khabbaz are important oilfields of North Iraq. According to their reserves, Iraq oilfields are also classified into ‘super-giant’, which have an aggregate reserve of 5 billion billion barrels or more, and ‘giant’ oilfields, which have total reserves ranging from 1 billion billion and 5 billion barrels. As per this categorization Iraq oil and gas industry has 9 super giant and 22 giant oilfields.

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