Iraq Slashes Oil Output Targets

By John Lee.

Reuters reports that Iraq has again reduced its oil production targets.

Speaking at a conference in London, Falah Alamri, head of the State Oil Marketing Organization (SOMO), said Iraq now planned to produce 5.5-6.0 million bpd by 2020, down from the previously target of 8.4-9.0 million bpd.

This would represent an increase of roughly 60 percent from current levels.

Gati al-Jebouri, senior vice president from Lukoil Overseas, commented:

I was pleasantly surprised… We believe it is a more realistic target.

“In any case, to maintain the current level of production a minimum of $10 billion needs to be invested over the next four and a half years. To achieve a target of 9 million bpd would need more than $100 billion of investment over the next four to five years.”

(Source: Reuters)

(Picture: SOMO HQ)

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