By Ahmed Mousa Jiyad.
Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.
The New Oil Production Targets, New Terms and Implications
Most petroleum professionals, including myself, had expressed their serious doubt about the suitability, attainability and sustainability of oil production plateau targets for many oilfields that were concluded pursuant to bid rounds one and two of 2009 and 2010.
The Ministry of Oil-MoO and senior energy decision makers in government begun to rethink those production targets only after the findings of both the International Energy Agency IEA (2012) and the Booz&Co., Integrated Energy Strategy INES (2013) raised similar doubts on the likelihood of realizing the contracted plateau targets in volumes and on time; and both IEA and INES called for serious reduction on these contracted targets.
Recent information from various official, industry and specialized media sources tells that agreements between MoO and related IOCs have been concluded pertaining to Rumaila and Halfaya oilfields, while those for West Qurna 1 (WQ1), West Qurna 2 (WQ2), Majnoon, and Zubair giant oilfields were finalized earlier; and related contracts have already been amended.
Mr Jiyad is an independent development consultant, scholar and Associate with Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: [email protected], Skype ID: Ahmed Mousa Jiyad).