Iraq promises oil export growth
BBC NEWS | Business | Iraq promises oil export growth
Iraq is on course for a 20% rise in its oil exports by the start of 2006, the head of its energy council says.
Ahmad Chalabi said output for export should hit 1.8 million barrels a day by January, when elections take place and a new administration takes power.
Talking to Reuters, he backed the idea that US and UK oil firms should have priority in Iraq's oil sector.
Mr Chalabi, once a US favourite to lead Iraq before falling out with Washington DC, is now a key government figure.
Security fears
Previous optimistic forecasts of growth in oil production and export have frequently proved over-optimistic.
The shortfalls are the product of problems with equipment after years of neglect, and the impact of an insurgency which frequently targets both oil installations and the industry's workers.
Oil firms continue to be concerned about the security situation.
Ahmad Chalabi is riding high in the Iraqi government
But Mr Chalabi insisted that an increase from the current 1.5 million barrels a day shipped overseas was realistic.
"We are looking at substantial increases after the January elections, when parliament will act on oil production through some form of association with international companies."
And the US and UK should head the list of potential partners, he said, "because (they) committed to the liberation of Iraq" - although he acknowledged that this was a personal view rather than a government policy.
New constitution
Whether or not oil majors are ready to take up such an offer remains in doubt, however.
Some observers fear Iraq's new post-January power structures - following the election under the country's recently-minted new constitution - could prove difficult for outsiders to negotiate with.
The constitution, which goes to a referendum later on 15 October, takes some control of oil resources out of the hands of the government in Baghdad and transfers it to the provinces.
This was a factor in the refusal of many representatives of Iraq's Sunni Muslim minority to back the document.
They argued it would take oil wealth away from the national treasury and put it largely in the hands of the Shia majority and the autonomous Kurdish provinces in the north of the country.
Iraq is on course for a 20% rise in its oil exports by the start of 2006, the head of its energy council says.
Ahmad Chalabi said output for export should hit 1.8 million barrels a day by January, when elections take place and a new administration takes power.
Talking to Reuters, he backed the idea that US and UK oil firms should have priority in Iraq's oil sector.
Mr Chalabi, once a US favourite to lead Iraq before falling out with Washington DC, is now a key government figure.
Security fears
Previous optimistic forecasts of growth in oil production and export have frequently proved over-optimistic.
The shortfalls are the product of problems with equipment after years of neglect, and the impact of an insurgency which frequently targets both oil installations and the industry's workers.
Oil firms continue to be concerned about the security situation.
Ahmad Chalabi is riding high in the Iraqi government
But Mr Chalabi insisted that an increase from the current 1.5 million barrels a day shipped overseas was realistic.
"We are looking at substantial increases after the January elections, when parliament will act on oil production through some form of association with international companies."
And the US and UK should head the list of potential partners, he said, "because (they) committed to the liberation of Iraq" - although he acknowledged that this was a personal view rather than a government policy.
New constitution
Whether or not oil majors are ready to take up such an offer remains in doubt, however.
Some observers fear Iraq's new post-January power structures - following the election under the country's recently-minted new constitution - could prove difficult for outsiders to negotiate with.
The constitution, which goes to a referendum later on 15 October, takes some control of oil resources out of the hands of the government in Baghdad and transfers it to the provinces.
This was a factor in the refusal of many representatives of Iraq's Sunni Muslim minority to back the document.
They argued it would take oil wealth away from the national treasury and put it largely in the hands of the Shia majority and the autonomous Kurdish provinces in the north of the country.
posted by Marcel at 7:17 AM
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