Despite of growth in oil production since 2009, water constraints, midstream infrastructure woes, contract terms and other aboveground factors have hindered Iraq’s ability to hit production targets.
Ian Thom, principal analyst of upstream MENA for Wood Mackenzie, wrote, “Collectively, Iraq’s southern technical service contracts (TSCs) have added 2.3 million [barrels per day] of oil production since 2009—a remarkable achievement given the challenges.”
He noted that 70% of the added barrels are growth, while the rest are offsetting baseline decline.
But Iraq is producing 4.7 MMbbl/d below its 8 MMbbl/d plateau production target (PPT), Thom said, adding it has “only achieved one-third of the incremental production required to meet the PPT,” excluding baseline production.
Data from OPEC’s latest monthly oil market report showed Iraq produced about 4.37 MMbbl/d in April, down from about 4.41 MMbbl/d in March.
Efforts to grow production come as the global oil and gas industry continues to rebound from a prolonged downturn.
Iraq makes 90% of its revenue through oil. It has awarded development rights to some of the world’s biggest oil companies, it has been challenged by commercial, technical, political and security issues.
Updated 06 Jun 2017 | | By S.Seal