Iraq, Opec’s second-largest producer, is in talks with the international oil majors operating in the country to help boost its crude production capacity by 60 per cent to about 8 million barrels per day, in the next six years, the country’s oil minister said on Wednesday.
Ihsan Ismail also said Baghdad considered oil trading between $75-$80 per barrel range as a “fair price for both producers and consumers”.
Eighty-five per cent of Iraq's revenue is dependent on hydrocarbons and it currently has a production capacity of 5 million bpd.
The country has three oil output scenarios: high, medium and low, and “we agreed in Iraq to go with the medium scenario, which speaks about 8 million bpd”, Mr Ismail told an online panel at the Energy Intelligence Forum.
Iraq is engaged in discussions with international oil companies including Shell, BP, Exxon Mobil, Lukoil and Italy's Eni that operate in the country to help it boost its crude output, he said.
“There is a new discussion with all our partner IOCs to optimise the production to about 8 million bpd by end-2027,” the minister said.
“I think we have completed about 90 per cent to 95 per cent of these discussions.”
Our target is to reach more than 6 million bpd by the end of 2024
Ihsan Ismail,
Iraq's oil minister
Brent, the benchmark under which more than half of the world’s oil trades, has rallied in the past week.
On Wednesday, it gave up earlier gains to trade 0.75 per cent lower to $81.94 a barrel at 4.23pm UAE time. West Texas Intermediate, the gauge that tracks US crude, fell 0.87 per cent and was trading at $78.24. Both benchmarks have gained about 60 per cent since the beginning of this year amid a strong economic rebound that has boosted demand for oil.
Iraq is also investing in new infrastructure to expand its export capacity, the minister said.
“Our target is to reach more than 6 million bpd by the end of 2024.”
The country, Mr Ismail said, was already in the process of bidding for a new offshore pipeline, which will help boost its export capacity from the current 4 million bpd.
In June, Iraq's oil ministry spokesman Aseem Jihad said the country planned to export its crude to global markets in “America, Asia and Europe”.
Higher oil prices and larger export volumes support oil producing economies of the region and lower their fiscal breakeven prices, according to the International Monetary Fund.
The fiscal breakeven price is the base price needed to balance the budgets of oil-exporting countries.
The fiscal breakeven price of Iraq has increased steadily since 2018, when it was $45.40 a barrel. Last year, it was $63.70, which is expected to hit $71.30 in 2021, before falling to $66.10 next year, according to the fund.
Iraq, which on Monday announced approval of talks with US energy company Chevron to develop four exploration blocks in the southern part of the country, expects to sign a deal with the energy major within the next few weeks, the minister said on Wednesday.
Technical talks for the development of exploration blocks in the southern province of Dhi Qar have already finished and Iraq National Oil Company is now engaged in commercial and partnership talks with the US firm, he said.
“Chevron is a very important partner for Iraq,” Mr Islamil said.
The planned project will be among the biggest in the country.
The state-controlled INOC will also be a 40 per cent partner with French oil major TotalEnergies, which signed a $27 billion deal with Baghdad for four oil and gas projects.
TotalEnergies will make an initial investment of $10bn in the country, with engineering investment in projects to start “immediately”, the company's chairman and chief executive Patrick Pouyanne said last month.
The company will invest in projects to recover gas being flared across three oilfields in Iraq and use the gas to generate power from a plant with 1.5 gigawatts capacity in the first phase. The move will help the country plug its power deficit and use its energy reserves more efficiently.
The deal with TotalEnergies is part of Iraq’s energy transition as it has renewable and gas capturing components, Mr Ismail said.
“This project is very important for our energy sector."
The minister said it would increase country’s “energy profile” and help it attain its goal of ultimately meeting all its power needs from locally produced gas, a vital step in energy transition.
Opec’s secretary general, Mohammad Barkindo, who spoke on the same panel, called on other energy producers to follow Iraq's lead and continue to invest in their oil and gas sectors to avert a potential supply crunch in the long term.
Crude will remain the biggest component of the international energy mix until 2045.
The world's population will rise and the global economy will more than double in size to $270 trillion, which will boost energy needs, Mr Barkindo said.
He, however, criticised economies campaigning to cut investments in oil and gas sector and said the conversation about energy transition and energy poverty had been “overtaken by hype”.
UAE currency: the story behind the money in your pockets
The years Ramadan fell in May
The 12 Syrian entities delisted by UK
Ministry of Interior
Ministry of Defence
General Intelligence Directorate
Air Force Intelligence Agency
Political Security Directorate
Syrian National Security Bureau
Military Intelligence Directorate
Army Supply Bureau
General Organisation of Radio and TV
Al Watan newspaper
Cham Press TV
Sama TV
More from Neighbourhood Watch:
GRAN%20TURISMO
%3Cp%3E%3Cstrong%3EDirector%3A%3C%2Fstrong%3E%20Neill%20Blomkamp%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EStars%3A%3C%2Fstrong%3E%20David%20Harbour%2C%20Orlando%20Bloom%2C%20Archie%20Madekwe%2C%20Darren%20Barnet%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3ERating%3A%3C%2Fstrong%3E%203%2F5%3C%2Fp%3E%0A
Which honey takes your fancy?
Al Ghaf Honey
The Al Ghaf tree is a local desert tree which bears the harsh summers with drought and high temperatures. From the rich flowers, bees that pollinate this tree can produce delicious red colour honey in June and July each year
Sidr Honey
The Sidr tree is an evergreen tree with long and strong forked branches. The blossom from this tree is called Yabyab, which provides rich food for bees to produce honey in October and November. This honey is the most expensive, but tastiest
Samar Honey
The Samar tree trunk, leaves and blossom contains Barm which is the secret of healing. You can enjoy the best types of honey from this tree every year in May and June. It is an historical witness to the life of the Emirati nation which represents the harsh desert and mountain environments
Dust and sand storms compared
Sand storm
- Particle size: Larger, heavier sand grains
- Visibility: Often dramatic with thick "walls" of sand
- Duration: Short-lived, typically localised
- Travel distance: Limited
- Source: Open desert areas with strong winds
Dust storm
- Particle size: Much finer, lightweight particles
- Visibility: Hazy skies but less intense
- Duration: Can linger for days
- Travel distance: Long-range, up to thousands of kilometres
- Source: Can be carried from distant regions
EMILY%20IN%20PARIS%3A%20SEASON%203
%3Cp%3ECreated%20by%3A%20Darren%20Star%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Lily%20Collins%2C%20Philippine%20Leroy-Beaulieu%2C%20Ashley%20Park%3C%2Fp%3E%0A%3Cp%3ERating%3A%202.75%2F5%3C%2Fp%3E%0A
SQUADS
South Africa:
JP Duminy (capt), Hashim Amla, Farhaan Behardien, Quinton de Kock (wkt), AB de Villiers, Robbie Frylinck, Beuran Hendricks, David Miller, Mangaliso Mosehle (wkt), Dane Paterson, Aaron Phangiso, Andile Phehlukwayo, Dwaine Pretorius, Tabraiz Shamsi
Bangladesh
Shakib Al Hasan (capt), Imrul Kayes, Liton Das (wkt), Mahmudullah, Mehidy Hasan, Mohammad Saifuddin, Mominul Haque, Mushfiqur Rahim (wkt), Nasir Hossain, Rubel Hossain, Sabbir Rahman, Shafiul Islam, Soumya Sarkar, Taskin Ahmed
Fixtures
Oct 26: Bloemfontein
Oct 29: Potchefstroom
Hotel Silence
Auður Ava Ólafsdóttir
Pushkin Press
The specs
Engine: 4.0-litre V8 twin-turbocharged and three electric motors
Power: Combined output 920hp
Torque: 730Nm at 4,000-7,000rpm
Transmission: 8-speed dual-clutch automatic
Fuel consumption: 11.2L/100km
On sale: Now, deliveries expected later in 2025
Price: expected to start at Dh1,432,000
UAE currency: the story behind the money in your pockets
BMW M5 specs
Engine: 4.4-litre twin-turbo V-8 petrol enging with additional electric motor
Power: 727hp
Torque: 1,000Nm
Transmission: 8-speed auto
Fuel consumption: 10.6L/100km
On sale: Now
Price: From Dh650,000
If you go
The flights
Emirates flies from Dubai to Seattle from Dh5,555 return, including taxes. Portland is a 260 km drive from Seattle and Emirates offers codeshare flights to Portland with its partner Alaska Airlines.
The car
Hertz (www.hertz.ae) offers compact car rental from about $300 per week, including taxes. Emirates Skywards members can earn points on their car hire through Hertz.
Parks and accommodation
For information on Crater Lake National Park, visit www.nps.gov/crla/index.htm . Because of the altitude, large parts of the park are closed in winter due to snow. While the park’s summer season is May 22-October 31, typically, the full loop of the Rim Drive is only possible from late July until the end of October. Entry costs $25 per car for a day. For accommodation, see www.travelcraterlake.com. For information on Umpqua Hot Springs, see www.fs.usda.gov and https://soakoregon.com/umpqua-hot-springs/. For Bend, see https://www.visitbend.com/.
Dark Souls: Remastered
Developer: From Software (remaster by QLOC)
Publisher: Namco Bandai
Price: Dh199
The years Ramadan fell in May
Killing of Qassem Suleimani
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
More on animal trafficking
RESULTS
6.30pm: Maiden Dh165,000 (Dirt) 1,200
Winner: Miqyaas, Adrie de Vries (jockey), Rashed Bouresly (trainer).
7.05pm: Handicap Dh165,000 (D) 1,600m
Winner: Untold Secret, Xavier Ziani, Salem bin Ghadayer.
7.40pm: Maiden Dh165,000 (D) 1,600m
Winner: Shanty Star, Fabrice Veron, Rashed Bouresly.
8.15pm: Handicap Dh190,000 (D) 1,600m
Winner: Alkaamel, Antonio Fresu, Musabah Al Muhairi.
8.50pm: Handicap Dh175,000 (D) 1,400m
Winner: Speedy Move, Richard Mullen, Satish Seemar.
9.25pm: Handicap Dh175,000 (D) 2,000m
Winner: Quartier Francois, Fernando Jara, Ali Rashid Al Raihe.
What sanctions would be reimposed?
Under ‘snapback’, measures imposed on Iran by the UN Security Council in six resolutions would be restored, including:
- An arms embargo
- A ban on uranium enrichment and reprocessing
- A ban on launches and other activities with ballistic missiles capable of delivering nuclear weapons, as well as ballistic missile technology transfer and technical assistance
- A targeted global asset freeze and travel ban on Iranian individuals and entities
- Authorisation for countries to inspect Iran Air Cargo and Islamic Republic of Iran Shipping Lines cargoes for banned goods
