CGES: Iraqi output target needs $28-43 billion

The Center for Global Energy Studies, London, in an Apr. 2 publication estimates that Iraq will need to invest $28-43 billion for raising its oil production capacity to 6 million b/d.

April 4, 2009

By OGJ editors
HOUSTON, Apr. 4 -- The Center for Global Energy Studies, London, in an Apr. 2 publication estimates that Iraq will need to invest $28-43 billion for raising its oil production capacity to 6 million b/d, a goal set during the regime of former President Saddam Hussein.

Besides the investment in fields, the estimate includes repair and refurbishment of pipelines, storage, and loading facilities to return capacity to 3.5-4 million b/d .

For the fields, CGES estimates that Iraq requires $9.6-13.6 billion for restoring production to the 3.8 million b/d produced before the 1980-88 Iran-Iraq war. Current production capacity is 2.7 million b/d.

To raise production to 6 million b/d would require an additional $18.6-26.9 billion, CGES says.