Iraqi Oil Minister Hussain al-Shahristani addresses the oil symposium.WSJ story on deals that signal rising oil output by Iraq is coming. Despite the lingering violence and political paralysis, the government seems doubly intent on moving forward with its big plans. Immense logistical challenges are described, and yet the foreign firms are already working on their blocs.
Two licensing auctions awarded 11 deals last year. If all proceed as planned, Iraq goes from a fraction of Saudi output to basically matching it in seven years. The foreign firms must cooperate on a massive water-injection system to be shared.
Meanwhile, BP and Sinopec are bragging that they’re increasing production at the massive Rumaila field already by 100bpd.
All this is important news, because nothing will encourage political cooperation in Baghdad more than increased revenue to be shared.