Iraqi Oil Attributes the Reluctance to Develop Oil Fields in Diyala to the Deterioration of Security
|October 25, 2011||Filled under Iraq Daily News|
Baghdad, (Rn) – The Ministry attributed the reason for the reluctance of Iraq’s oil development of oil fields located in Diyala, northeast of Baghdad to the unwillingness of the investment companies to enter the province because of security problems in it.
And emphasizes the local government in Diyala incurred losses amounting to more than one billion dollars annually due to the delay and the disruption of oil investment in the province.
Officials say that their province of Diyala oil wells in the oil box in the district of Khanaqin, but produces only about 4 thousand barrels per day after that was producing 20 thousand barrels per day before the outbreak of the Iran-Iraq war in the eighties of the last century.
Attribute many of them tied to invest in Diyala oil fields to the limitations of the Iraqi Oil Ministry for the reasons may be due to political differences and the occurrence of most of the fields and oil resources in the north of the province and which fall within the disputed areas between the KRG and the Iraqi government.
A spokesman Assem Jihad, oil ministry, told the Kurdish news agency (Rn) that “The oil ministry has offered field Mansourieh in the first round of licensing, but the deteriorating security situation at the time, cause not to enter the international companies to invest in it.”
He added that “The oil ministry is reluctant to support investment projects in the province’s oil, but work hard to attract international companies to develop oil and gas sites in the province.”
The Advisor to the Governor of Diyala for Reconstruction and Investment Rasim Ismail Aqidi revealed (Rn) in the earlier receipt of the province to more than 10 offers from foreign companies to invest in oil fields and increase production to more than 20 thousand barrels per day and the establishment of oil refineries and use for development purposes.
He said the oil ministry rejected all offers of foreign companies for reasons not understood, despite the significant stabilization of the security situation in the general areas of the province.
The Khanaqin district in Diyala areas rich in oil and oil fields where the check and Pique, but the extraction of oil wells is limited to only four out of 42 wells.
The oil extracted from oil fields in the check of the finest types of oil in the world, because the density of low quality as well as the lack of sulfur and asphalt located in it.
Spokesman of the Ministry of Oil, “The Ministry did not obstruct any oil project in the province which is agreed with a consortium of Turkish companies, which won in the development field Mansourieh gas to support the economic reality of the province, through the operation of the workforce and the granting of subcontracting as well as to the issue of fiscal revenue for projects petrodollars.”
The giant international companies in the field of energy has won contracts through three rounds of licenses to develop 11 oil fields discovered untapped.
Although the Iraqi government expected the arrival of crude oil production to about 12 million barrels per day over the next five years, but experts have questioned the access to the production of that goal, and they said that seven million barrels a day was a reasonable figure.
Iraq has the OPEC member’s fourth largest oil reserves in the world and oil imports are about 95 per cent of the budget of state finances.
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