Massive Oil Sector Losses Due to 'Bad Administration'

Iraq has lost a total of about US$493 billions in the period from 2003 and 2011, due to the hampering or postponement of projects, bad administration and planning, according to a report from Aswat al-Iraq.

Expert Nizar Haider of the Research Section in the US DTI Company for Energy Affairs said in a report that, “Iraq’s oil sector’s losses during the period from 2003 to 2011 has reached about US$439 billions (b), all due to bad administration, planning and hampering or postponement of projects, along with the loss of 8.5 million possible employment chances that could have raised the annual income-per-capita from US$3,500 TO US$18,000 per annum”.

“The Iraqi economy, in its current position, is prepared to receive US$20 billions to 30 billions (b), through government investments, apart from the production investments, especially the export ones, that have no limits and has no relationship with the size of economy, as much as its relationship with country’s current atmosphere, supporting profits and the reduction of the production costs,” Haider said.

He said that “five years have been wasted before (Prime Minister) Nouri al-Maliki’s government had reached the necessary step to achieve the necessary step to increase oil production to an average production between 3.1 million barrels per day (bpd) in 2011 to 3.7 million bpd by 2012.”

Haider has estimated Iraq’s financial losses, caused by the delay of oil production projects by “US$227 billions (b) between 2006-2011, and US#538 billions (b) between 2012-2016, in the event of keeping the oil prices on an average of 80 dollars per barrel.”

He pointed out that “Iraq’s economic losses, caused by the delay of natural gas projects is estimated to be US$52.9 billions (b) between 2006 and 2011, and US$147 billions (b) between 2012 and 2016.”

Expert Haider estimated Iraq’s total losses, caused by the waste of chances and postponement of projects had reached to US$5.3 trillions (t), making them close to Iraq’s economic losses due to wars it was involved in during Saddam Hussein’s regime, that reached US$7.8 trillions (t).

Expert Haider in conclusion suggests “in the event of the price of a barrel of oil exceeds 70 dollars and if Iraq’s oil exports exceeds the 1.5 million bpd, its total revenues, that would be considered exceeding the State’s budget the 1.5 million bpd, the expected revenues would be used in investment projects and the building of an infrastructure and service institutions, apart from the sectors of industry, agriculture and tourism.”

(Source: Aswat al-Iraq)

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