Iraq has been devastated by severe conflict for several years. However, rebuilding Iraq will prove to be one of the biggest global investment opportunities for companies involved in the energy sector.
According to a recent article in The National newspaper, Iraq sits on the third largest oil reserves in the world and pumps 2.75 million barrels per day (bpd) of crude. This figure is projected to reach 7 million bpd by 2017 and eventually to 12 million bpd. That would involve drilling 800 to 1,200 new wells a year, estimates Erin Miller Rankin, a construction and project lawyer in Dubai at Freshfields Bruckhaus Deringer. She also stated Iraq has great potential for a boom if its infrastructure obstacles are overcome.
As reported by Bloomberg, Deputy Oil Minister Ahmed Al-Shamma stated that Iraq imports about 10 million liters of gasoline each day to meet domestic demand. Consequently, the nation is seeking an investment of about US$30 billion to add enough fuel-processing capacity to stop depending on gasoline and diesel imports.
Iraq is also in desperate need of electricity – as per Iraqi Prime Minster Nuri Al-Maliki, only 7,000 Megawatts (MW) is currently being generated when the nation’s electricity demand is twice as much. Prime Minister Al-Maliki continues to emphasize that Iraq needs quick solutions to its power woes.
Sidharth Mehta, Senior Project Manager, The Energy Exchange, said: “Iraq is at a point where the government is committed to rebuilding the entire economy and raise living standards. Iraq 2011: Future Energy is the ideal platform for investors, specifically those involved in the energy industry, to network and stay well informed about the overwhelming potential the energy industry of Iraq has to offer.
“Participants of Iraq 2011: Future Energy will be provided with an in-depth and comprehensive look into the oil and gas, power, electricity and infrastructure sectors. Speakers will explore the opportunities available to investors and how they can capitalize on them. In addition, they will highlight the potential drawbacks and provide solutions on how the country and companies can overcome these obstacles. Furthermore, one day will be dedicated to the Kurdistan region to demonstrate how it can be an extremely lucrative region for investors.”
In a recent article in the Financial Times, Ashti Hawrami, Natural Resources Minister, Kurdistan Regional Government (KRG), states that Kurdistan has an estimated 45 billion barrels of oil and between 100,000 – 200,000 billion cubic feet of gas, making it an attractive province for oil companies to profit. The Kurdistan region is also expected to export 200,000 bpd of oil, a rise from the current 175,000 bpd by the end of the year.
Opportunities in Iraq with regards to the oil and gas, power, electricity and infrastructure sectors have significant financial potential. Iraq 2011: Future Energy will be the ideal place to network with some of the leading figures in the energy industry to build strategic relationships and begin Iraq’s quest to reach economic prosperity.
Held in Istanbul Turkey, Iraq 2011: Future Energy will take place from 26 – 29 September 2011 at the Elite World Istanbul Hotel.
Please click here to download the Arabic version of this announcement.