The production capacity of Iraqi oil in 2005 will primarily depend on political developments in the country after the Jan. 30 elections and the possibility of forming a harmonious government, according to Iraqi Oil Minister Thamir al-Ghadban.
In an interview with the Arabic Al-Hayat newspaper, Ghadban added that the ministry's investment budget for 2005 totals around $3 billion, most of which will be dedicated to raising production capacity to 2.2 million b/d in the southern oil fields and to 700,000 b/d in the north.
Al-Ghadban said the amount allocated for the Oil Ministry in the investment budget is additional to the amount allocated in the regular budget—about $2.4 billion—for the import of oil products.
The oil minister noted that 246 oil installations, including five oil wells and 51 export pipelines, were blown up in 2004, compared with 77 sabotage operations in 2003.
These operations cost the Iraqi treasury about $6 billion in 2004.
He said a plan would be implemented this year to protect the northern network of pipelines against sabotage.
"The plan includes using modern technology in observation and warning and deploying the army between Kirkuk and the area of Al-Fathah first, and then in the north between Mosul and the Turkish border, and finally between Beiji and Baghdad," he said.
If this plan succeeds, he expects Iraq to be able to export 300,000 b/d from the north via the Turkish port of Ceyhan. The plan also includes securing the southern network from the acts of sabotage carried out by gangs of smugglers. A tender for setting up a modern electronic system for protecting oil pipelines was announced on Jan. 17.
Al-Ghadban noted that planned projects will include developing four small oil fields in the north and the south (Hamrayn, Chamchamal, Al-Sabbah, and Luhays), providing cables and power generators for oil installations, boosting water injection, constructing tanks, drilling wells, and securing spare parts.
This is in addition to completing refinery construction in Al-Samawah, Al-Nasiriyah, Basra, and Beiji to increase the country's refining capacity to about 600,000 b/d.