Iraqi Oil Minister Abdul Karim Luaibi said, "Iraq is confident of its ability to export all projected increases in production this year."
Since 2010, Iraq has signed many contracts with international companies to develop a number of oil fields, and has previously announced its intent to produce 6 million barrels of oil per day by 2017. These contracts have pushed the Iraqi Oil Ministry to implement a plan aimed at increasing the country's export capabilities. The first stages of this plan involve projects to build new pump tanks at the coastal warehouse in Faw, and to extend two pipelines including 20 km [12 miles] on land and 120 km [75 miles] under water. Once these pipelines have been completed, they will be linked to three offshore rigs.
In October 2011, the state-owned South Oil Co. signed billion dollar contracts with two companies — one Australian and the other Italian — to install two offshore rigs, lay an underwater oil transport pipeline, and erect a platform for valves and meters. These contracts came in light of an expected increased in Iraq's export potential through the Gulf to 6 million barrels a day after three years.
The parliamentary Energy Committee believes that the amount of oil the country exports is still less than the upper limit set by OPEC, and that Iraq is capable of increasing its exports in the future.
Susan Saad, a member of this committee, said, "Iraq has not reached the upper limit for export set by OPEC, which is designed to balance supply and demand in world markets."
She added that Iraq could receive special exceptions to raise export capacity as it deems appropriate, given the country's need for oil revenue.
Omar al-Shaher is a contributor to Al-Monitor’s Iraq Pulse. His writing has appeared in a wide range of publications including France’s LeMonde, the Iraqi Alesbuyia magazine, Egypt’s Al-Ahaly and the Elaph website. He previously worked for Al-Mada covering political and security affairs and as a correspondent for the Kuwaiti Awan newspaper in Baghdad in 2008-10.
Illusions and more illusions.
In the last month we have read about a pipeline to Akaba, another pipeline to the Mediterranean together with Iran via Syria (!), yesterday of one more pipeline to Turkey. All those pipelines in just few days and considering the project management skills of Baghdad they must be a joke or April 1st news.
On top of that, major disturbances with kurds, Anbar and Dijala. In the West we learnt of "Baghdad Ali" or whatever was his name who kept on telling the victorious progress of the war and the achievements of Saddam whilst the truth was very different.
This new from the Oil Ministery is just one more of those stories.
Sir, increasing output of crude oil and selling in very cheap revenue because 1US$=1100+ Dinar! And people of Iraq remains poor!Tiny Kuwait's Dinar value is 1$=3+KD! Very rich people in Kuwait, why not in Iraq! Please consider and encourage authority to improve currency value, thanks, Ameer.