Iraq continues to solidify its position as a major force in the global energy market with several significant crude oil projects. Below is a detailed look at the key projects and developments scheduled for the coming years.

Major Projects and Capacity Expansions:

1. Majnoon Field
2. Operator/Investor: Basra Oil Company
3. Additional Capacity: 200 thousand barrels per day (b/d)
4. Announced Start Date: End 2023
5. Notes: Shell exited field ownership in 2018.
6. West Qurna-1 Field
7. Operator/Investor: ExxonMobil and Basra Oil Company
8. Additional Capacity: 330 thousand b/d
9. Announced Start Date: 2028
10. Notes: Iraq awarded a drilling contract to Schlumberger, but delays are expected due to disputes and uncertainties.
11. Zubair Field
12. Operator/Investor: ENI
13. Additional Capacity: 50 thousand b/d
14. Announced Start Date: End 2024
15. Notes: Future expansions will require more water injection.
16. Ratawi Field
17. Operator/Investor: TotalEnergies
18. Additional Capacity: 130 thousand b/d
19. Announced Start Date: 2025
20. Notes: Field expansion is part of TotalEnergies' $27 billion deal with Iraq, finalized in July 2023.
21. Eridu Field
22. Operator/Investor: Lukoil
23. Additional Capacity: 250 thousand b/d
24. Announced Start Date: 2028
25. Notes: Pilot phase will produce 30,000 b/d from 2025 to 2028, with peak production target set for 250,000 b/d.
26. Fields in Dhi Qar Province
27. Operator/Investor: Dhi Qar Oil Company (DQOC)
28. Additional Capacity: 310 thousand b/d
29. Announced Start Date: 2028
30. Notes: Ongoing negotiations with Chevron for exploration and development. No progress as of September 2023.
31. West Qurna-2 Field
32. Operator/Investor: Lukoil
33. Additional Capacity: 330 thousand b/d
34. Announced Start Date: 2030
35. Notes: Capacity expansion includes Yamama reservoir. Pilot project began in 2021, producing 30,000 b/d as of October 2023.
36. Missan Cluster (Bazergan, Fakka, and Abu Gharb Fields)
37. Operator/Investor: China’s CNOOC
38. Additional Capacity: 100 thousand b/d
39. Announced Start Date: November 2022
40. Notes: CNOOC expanded the Missan Cluster’s capacity to 300,000 b/d in November 2022.
41. Faihaa Crude Oil Processing Facility
42. Operator/Investor: China’s United Energy Group
43. Additional Capacity: 100 thousand b/d
44. Announced Start Date: H2 2024
45. Notes: Located near the Iran border, plans include expanding Faihaa field capacity from 50,000 b/d to 130,000 b/d.

Economic Impact and Future Prospects

The planned expansions and developments in Iraq's oil fields underscore the country's critical role in the global energy market. These projects not only aim to increase production capacity but also address technological and logistical challenges, such as water injection requirements and the integration of advanced drilling techniques.

Challenges and Considerations

While these projects present significant opportunities, they also come with challenges, including political instability, regulatory delays, and the need for substantial infrastructure investments. The ongoing negotiations and potential delays highlight the complex landscape in which Iraq operates.

Conclusion

Iraq's ambitious plans to expand its crude oil production capacity reflect its commitment to maintaining and enhancing its position in the global energy market. By overcoming existing challenges and successfully executing these projects, Iraq can ensure sustained economic growth and stability, reinforcing its pivotal role in the global energy sector.

Sources

• Middle East Economic Survey
• FACTS Global Energy Services
• Rystad Energy
• Al Arabiya News
• Company Websites

Iraq stands as a pivotal player in the global energy market, underpinned by its vast oil reserves and significant production capabilities. With confirmed oil reserves ranking fifth globally at 145 billion barrels, Iraq's influence on global energy dynamics is substantial.

Major Oil Reserves and Production

Iraq is a key member of the Organization of the Petroleum Exporting Countries (OPEC), ranking second in crude oil production within the organization, only behind Saudi Arabia. On a global scale, Iraq stands sixth in the total production of petroleum liquids. The country's major oil fields are primarily located in regions such as Basra, Diyala, and Kirkuk, which are critical hubs for its oil extraction and export activities.

Economic Dependency on Oil Exports

The Iraqi economy is heavily reliant on oil exports, which constitute about 95% of its revenue. In 2022, Iraq's oil export revenue soared to $131 billion, up from $92 billion in the previous year. This significant increase underscores the centrality of oil to Iraq's economic health and its role in the global energy market.

Political and Legislative Landscape

Despite forming a consensus government after the parliamentary elections in 2021, Iraq faces challenges in the timely enactment of legislation and budget approvals. These delays can hinder major energy projects and impact the country's ability to fully leverage its oil resources for economic growth and stability.

Infrastructure and Development Needs

To maximize its energy potential, Iraq must address ongoing challenges in budget approvals and infrastructure development. Enhancing infrastructure is crucial for boosting production capacity and ensuring efficient export operations. Investments in infrastructure will also help Iraq better handle the technical and logistical demands of its vast oil industry.

Global Energy Influence

Iraq's substantial oil reserves, estimated at over 140 billion barrels, position it as a key global energy player. Its ability to influence global oil prices and supply dynamics is significant, given its production capacity and export volume. As the world's energy landscape continues to evolve, Iraq's role remains crucial in maintaining the balance and stability of global oil markets.

In conclusion, Iraq's vast oil reserves and its significant role in OPEC highlight its importance in the global energy market. However, to fully harness its potential, Iraq must address legislative delays and infrastructure challenges. By overcoming these obstacles, Iraq can ensure sustained economic growth and continue to be a major force in the global energy sector.

Sources

• U.S. Energy Information Administration (EIA)
• BP Statistical Review of World Energy