Q&A with Thamir Abbas Ghadhban

Abstract

Q&A What is Iraq's current oil production and reserves? Oil production in Iraq is currently about 2.25 million BOPD, with production capacity of 2.8 million BOPD. There has been a recent increase of some 300,000 BOPD because of the resumption of exports of oil in the north through Turkey after the government succeeded in securing the export pipeline. Exports are now about 1.85 million BOPD. Our production target for 2008 is 2.5 million BOPD. Iraq's oil reserves are between 112 and 115 billion bbl of proved reserves. What is the current status of the hydrocarbons law, which you helped to draft? Right now it is in Parliament, in the Council of Representatives. There has been a delay on this law for various reasons, some of which are administrative—the council was on holiday for a month in August, and there are other laws pending that require debate. But I expect discussion on the hydrocarbons law to begin soon. What are the main objections to the law by its opponents? There have been some differences between the federal government and the regional government of Kurdistan on some details, but they are not of a serious nature. It is not about ownership of the oil but about authority. The ownership question has been solved—oil and gas are the property of the whole nation of Iraq. There is some disagreement about the nature of contracts, particularly production sharing. But the main political parties in the government favor the law. If the law passes, what role will there be for international oil companies (IOCs) in Iraq? There is no doubt there will be a big role for IOCs because there is a recognition in Iraq that there is a great need for technology, managerial skills, and speedy development of oil and gas fields. There is agreement that IOCs will have a role. The disagreement is over what type of role or what form of contracts will be implemented. I would expect that in the coming years, and especially next year, there will be room for IOCs to start taking an active role in oilfield development and exploration. The country's major resources are oil and gas, and the revenue from oil exports constitutes more than 90% of the federal budget. The government is aware that oil and gas development and expansion are priorities for the country, and for speedy development of production capacity and export capacity, the involvement of IOCs is essential.