The oil minister, Abdul Karim al-Luaibi, has been busy in the few days since his appointment. Not only has he announced that exports from the northern Kurdistan region are to resume, but he has also promised that the focus will be on rebuilding the decayed oil infrastructure, according to the Arab Times.
Al-Luaibi, who has a lot of experience in the sector, has said that in addition to rebuilding infrastructure the priority will be to increase export capacity from the south to 4.5m barrels per day from around 1.6m bpd.
The increase is to be found in two fields: the Rumaila field, holding 17.8bn barrels of oil and being developed by BP and China’s CNPC, and the Zubair field, being developed by Italy’s Eni, the US’s Occidental Petroleum Corp and South Korea’s KOGAS.
However, Samuel Ciszuk of analysts IHS Global Insight is worried that improvements in infrastructure to transport and export oil cannot keep up with the rapid increase in production, due to a lack of financial resources and “infrastructural bottlenecks.”
(Source: Arab Times)