The Iraqi Oil Ministry and the Planning Ministry have prepared a five-year program of development of oil and gas sector in the country, Iraqi Oil Ministry spokesman Asym Jihad told Trend on Monday.

Under this plan, from 2013 to 2017, the country will vigorously develop the oil and gas sector, involving a large investment and foreign companies, Jihad said.

Thus, according to him, from the beginning of 2013 the country plans to increase oil production from 2.9 million barrels of oil per day to six million barrels by the end of 2017.

Thus, Iraq is going to get the total income (including income from oil sales) of $ 8 trillion by the end of 2013 at an average cost of an oil barrel of $85.

“By the end of 2017 Iraq intends to bring the income up to $ 12 trillion,” Jihad said.

According to BP, Iraq’s proven oil reserves as of early 2011 amounted to 115 billion barrels. The country ranks in third after Saudi Arabia and Iran.

The major oil fields of Iraq are Rumaila, Zubair, Nahr Umr, Majnoon and West Qurna in south of the country. Some 80 per cent of oil produced in the country is exported.

With regard to the development of gas production, Jihad said that under the five-year program Iraq aims to develop gas fields and by the end of 2017 the country intends to become a major supplier of gas in the region.

“We plan to introduce additional incentives for foreign companies intending to develop the gas sector in Iraq. We will create additional conditions for attracting investment in gas exploration and production. Under the five-year program the gas sector will be a
priority for Iraq,” Jihad said.

Jihad told Trend earlier that the country will increase production from the three existing fields: Akkaz in Anbar area (largest field), Siba in Basra, and Mansouriya in the province of Diyala.

Among the 13 companies which participated in the tender, the rights to develop deposits were issued to Kuwaiti Kuwait Energy, South Korean Kogas, Turkey’s TPAO. Among the participating companies were also Italy’s ENI, French TOTAL, Japan Oil, and others, he said.

Jihad said the reserves of these fields are estimated at 317 billion cubic meters of gas.

Jihad also said associated gas from oil fields will be used. Gas reserves are estimated at 20 million cubic meters per day (700 million cubic feet) and new fields have been developed.

According to BP, the proven gas reserves in Iraq at the beginning of 2011 amounted to 3.17 trillion cubic meters.

Source: Rigzone & Trend News Agency