1
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Table of Contents List of Abbreviations............................................................................................................ 7 Preface.................................................................................................................................. 9
History and Context Rise and Fall of the Iraq Petroleum Company.................................................................! Iraq "ational #il Company $I"#C%.................................................................................... & "ationalisation of Iraqi #il Industry................................................................................' Impact of (ars and )anctions on Iraq............................................................................. * Iraq+s #il Industry post,&!!'............................................................................................. Iraqi embership of #P/C................................................................................................ & #il theft in Iraq................................................................................................................... && #il 0nions in Iraq............................................................................................................... &* Federal Iraq and the KRG Federalism1 Factionalism and Re2ional 3ifferences.......................................................&4 Revenue )harin2 Procedures in Iraq................................................................................&9 5R6 Contract 3isputes....................................................................................................... '! 5R6 /port 3isputes.......................................................................................................... '& Energy Industry Background Iraqi 8ydrocarbon Reserves and Production..................................................................' 3ependence on /tractives Revenues..............................................................................':he +/ner2y i+................................................................................................................ '9 Generic Oil and Gas Terms Resource Curse................................................................................................................... ' 3efinition of 8ydrocarbon Reserves................................................................................4 #il Field 3epletion.............................................................................................................. /nhanced #il Recovery $/#R%...........................................................................................9 Crude #il ;ualities............................................................................................................. *! "atural 6as......................................................................................................................... *' "atural 6as Flarin2............................................................................................................ ** Liquefied "atural 6as $L"6%..............................................................................................*4 Liquid Petroleum 6as $LP6%..............................................................................................*4 0nconventional /ner2y )ources...................................................................................... *Fuel )ubsidies..................................................................................................................... *9 #ilfield )ervices Industry.................................................................................................. 4& Regulatory Frameork #vervie< of Re2ulatory Frame
3
Iraq+s :hird Licensin2 Round $&!!%................................................................................ 7 Iraq+s Fourth Licensin2 Round $&!&%..............................................................................74
Regional !ynamics Iran,Iraq.............................................................................................................................. 79 )audi Arabia,Iraq............................................................................................................... -& 5u
P......................................................................................................................................... 9 Chevron Corporation......................................................................................................... 97 China "ational #ffshore #il Corporation $C"##C%.........................................................99 China "ational Petroleum Corporation $C"PC%............................................................! 3"# International............................................................................................................ ! 3ra2on #il......................................................................................................................... !4 /ni...................................................................................................................................... !7 /onobil....................................................................................................................... ! 6a?prom............................................................................................................................ 6enel /ner2y..................................................................................................................... 4 8erita2e #il....................................................................................................................... 9 8unt #il............................................................................................................................. &! Inpe................................................................................................................................. && @apan Petroleum /ploration Company $@ape%...........................................................&' 5a?unai6as $56%........................................................................................................ &* 5o2as $5orea 6as Corporation%....................................................................................... &4 5u
Iraqi Entities Ministry and its operating companies # inistry of #il.................................................................................................................. *7 )tate #il ar=etin2 #r2anisation $)##%.....................................................................*Petroleum Contracts and Licensin2 3irectorate $PCL3%..............................................*9 "orth #il Company $"#C%............................................................................................... 4!
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)outh #il Company $)#C%................................................................................................ 4 Iraq 3rillin2 Company $I3C%............................................................................................ 4& aysan #il Company $#C%............................................................................................ 4' #ther Iraqi /ntities.......................................................................................................... 4 Other Iraqi actors Iraqi inistry of Finance................................................................................................. 47 Central >an= of Iraq $C>I%............................................................................................... 4Iraqi Prime inister+s #ffice........................................................................................... 49 5urdistan Re2ional 6overnment $5R6%.........................................................................7!
Key In"rastructure #vervie< of Infrastructure in Iraq................................................................................. 7' Refineries >aiDi Refinery.................................................................................................................... 7* >asra Refinery.................................................................................................................. 74 3aura Refinery................................................................................................................. 77 /rbil Refinery................................................................................................................... 7Terminals 5hor al,Amaya #il :erminal $5AA#:%...........................................................................79 >asra #il :erminal $A>#:%..............................................................................................79 Pipelines 5ir=u=,>anias Pipeline $IPC%........................................................................................... -! Iraq Pipeline throu2h )audi Arabia $IP)A%....................................................................-
:aq :aq,5hurmala #il Pipeline.......................................................................................-' 5ir=u=,Ceyhan #il Pipeline............................................................................................. -' )trate2ic Pipeline............................................................................................................. - Islamic 6as Pipeline.........................................................................................................-* /rbil,3ohu= 2as pipeline................................................................................................. -* Other infrastructure projects )outh 6as 0tilisation ProDect..........................................................................................-4 /nvironmental Impacts of Iraq+s #il and 6as Industry................................................--
Oil and Gas Fields Fields awarded y central go!ernment Ahdab #il Field................................................................................................................. 9& A==as 6as Field................................................................................................................. 9' >adra #il Field.................................................................................................................. 9* >ai 8assan #il Field.......................................................................................................... 94 +/astern Fields+................................................................................................................. 97 /ast >a2hdad #il Field.....................................................................................................96arraf #il Field................................................................................................................. 99 8alfaya #il Field............................................................................................................... &!! aDnoon #il Field............................................................................................................. &! ansuriyah 6as Field...................................................................................................... &!' aysan #il Fields............................................................................................................. &! iddle Furat #il Fields.................................................................................................... &!* "ahr >in 0mar #il Field.................................................................................................. &!4
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"aDmah #il Field............................................................................................................... &!7 "asiriyah #il Field............................................................................................................ &!;ayara #il Field................................................................................................................ &!9 Rumaila #il Field.............................................................................................................. &! )iba 6as Field.................................................................................................................... && (est ;urna Field $Phase %............................................................................................. &' (est ;urna Field $Phase &%............................................................................................. &* Eubair #il Field................................................................................................................. &4 Fields awarded y "RG :aq :aq#il #ilField................................................................................................................. Field.............................................................................................................. &7 :a<=e &9 #isputed fields 5ir=u= #il Field................................................................................................................ &9
Resource Trans#arency O##ortunities :ransparency of Contracts..............................................................................................&&' "atural Resource Charter $"RC%.....................................................................................&& /tractive Industries :ransparency Initiative $/I:I%....................................................&&4 Publish (hat ou Pay $P(P%........................................................................................ &'' Revenue (atch Institute $R(I%...................................................................................... &' 6lobal (itness.................................................................................................................. &'4 :ransparency International............................................................................................ &'7 !irectories Iraq of Listin2s................................................................................................. Contacts............................................................................................... & Iraq 3irectory #il Industry &*
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List of Abbreviations ABOT
al-Basra Oil Terminal
boe
barrelsofoilequivalent
BOR
BaijiOilRefinery
bp !B"
barrelsperay !entralBan#of"raq
!O
%$"raqi!ommitteeof$inan&ial%'perts
!(A
!oalition(rovisionalAut)ority
*$"
*evelopment$unfor"raq
%"A
+,%nery"nformationAministration
%"T"
%'tra&tive"nustriesTransparen&y"nitiative
$O.!
$eeralOilan.as!oun&il
$T(
$inal Tener (roto&ol
.+O%
.eneral+nionofOil%mployees
"%A
"nternational%neryAen&y
"$O+
"raqi$eerationofOil+nions
"/$
"nternational/onetary$un
"0O!
"raq0ationalOil!ompany
"O!
"nternationaloil&ompany
"OT!
"raqiOilTan#ers!ompany
"(!
"raq(etroleum!ompany
"T( AAOT
"nitial Tener (roto&ol )oral-AmayaOilTerminal
R.
uristanReional.overnment
0.
iquefie0atural.as
(.
iqui(etroleum.as
/R!
/ilanRefineries!ompany
0.!
0ort).as!ompany
0O!
0ort)Oil!ompany
0R!
0aturalResour&e!)arter
O%!
"raqiOil%'ploration!ompany
O(%!
Oranisationof(etroleum%'portin!ountries
(!*
(etroleum!ontra&tsani&ensin*ire&torate
(
uristanor#ers(artyTur#ey7
(R*!
(etroleumResear&)8*evelopment!enter
(,A
(rou&tion,)arinAreement
(,!
(rou&tion,)arin!ontra&t
(+
(atrioti&+nionofuristan
(9(
(ublis))at9ou(ay
R"
Revenueat&)"nstitute
,!O(
,tate!ompanyofOil(roje&ts
,.!
,out).as!ompany
,O/O
,tateOil/ar#etinOranisation
,(/
,inlepointmoorin
,R!
,out)Refineries!ompany
t&f
trillion&ubi&feet
t&m
trillion&ubi&metres
T"
Transparen&y"nternational
T,!
Te&)ni&alservi&e&ontra&t
TT,$
Trainin:Te&)noloyan,&)olars)ip$un
+0
+nite 0ations
;
<
Rise and Fall of the Iraq Petroleum Company T)e "raq (etroleum !orporation "(!7 =as a &onsortium of major estern oil &ompanies =)i&) )el a monopoly on all "raqi prou&tion from t)e beinnins of t)e inustry until 1<62: an &ontinue to ominate prou&tion until nationalisation in t)e early 1<>s?1
Foundation T)e &ompany =as foune in 1<12 as t)e Tur#is) (etroleum !ompany T(!7: so &alle be&ause alt)ou) it =as forme to prospe&t for oil insie "raq: "raq =as t)en a provin&e of t)e Ottoman Tur#is) empire?2 T)e larest s)are)oler in t)e &ompany =as t)e Anlo-(ersian Oil !ompany: an ante&eent of toays B(: at t)e time &ontrolle ire&tly by t)e Britis) overnment? 3 Ot)er major s)are)olers on its &reation =ere ,)ell an Armenian oil manate !alouste .ulben#ian: =)o o=ne 5 per&ent of t)e s)ares? T)e &ompany re&eive a &on&ession from t)e Ottoman aut)orities but t)en t)e $irst orl ar bro#e out: &easin all e'plora tion a&tivity? "t =oul be 15 years before any oil at all =as is&overe in "raq:4 but t)at i not prevent t)e "(! from bein t)e subje&t of fier&e politi&al battles? T)e Allies realise t)e importan&e of oil urin t)e orl ar? T)e status an o=ners)ip of t)e &ompany =as a prominent issue at t)e ,an Remo !onferen&e of 1<2>: =)i&) is&usse t)e fate of non-Tur#is) parts of t)e Ottoman %mpire?2
Discovery of oil "n 1<25 t)e Britis) overnment: by no= rulin "raq as a ire&t manate after t)e &ollapse of t)e Ottoman %mpire: rante a fres) &on&ession to t)e T(!? A&&orin to Re' @ealis of t)e +niversity of Tulsa: t)e moern )istory of oil an as in "raq beins =it) t)is areement?5 T)is &on&ession &overe t)e =)ole of t)e /osul an Ba)a provin&es: &onstitutin most of "raq but e'&luin t)e sout)ern Basra provin&e? At t)e time t)e s)are)olers in t)e T(! =ere t)e Anlo-(ersian Oil !ompany =it) 45 per1 "raqs Oil ,e&tor (ast: (resent an $uture: James Baker Institute for Public Policy: /ar&) 2>> 2 T)e Tur#is) (etroleum !ompany: US Library of Congress: retrieve 4 anuary 2>13? 3 $rom Anlo-(ersian Oil to B( Amo&o: BBC: 11 Auust 1<<;? 4 "raq (etroleum !ompany Ar&)ive: Archives Hub: retrieve 13 anuary 2>12? 5 @ealis: Re' T)e eal *imensions of Oil an .as in "raq: Cambridge University Press: 0ovember 2>>
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&ent: Royal *ut&)-,)ell =it) 22?5 per&ent: t)e !ompanie $ran&aise es (etroles =it) 25 per&ent: an !alouste .ulbe#ian =it) 5 per&ent? "n 1<2 oil =as stru&# at Baba .urur: just outsie ir#u#: transformin "raq into one of t)e most valuable &on&essionary areas in t)e =orl ?6 By t)e en of 1<3> t=enty prou&in =ells )a been &omplete? "n uly 1<2; t)e Ameri&ans: uner t)e 0ear %ast *evelopment !orporation: =ere allo=e into t)e &on&ession: ta#in some of Anlo-(ersians s)are to )ol a 23?5 per&ent sta#e:6 an in 1<2< t)e T(! reoranise itself as t)e "raq (etroleum !ompany "(!7? A&&orin to o)n Blairs boo# !ontrol of Oil: t)e +, an +-base &ompanies in t)e T(! &onsortium eliberately )el o=n prou&tion in t)eir "raq &on&essions in orer to ma'imise t)eir =orl=ie profits: urin an era in =)i&) t)e .reat *epression )a resulte in a lobal lut of oil an lo= pri&es? T)ese elayin ta&ti&s =ere employe in rillin an evelopment a&tivities: as =ell as neotiations over pipelines an e'port routes? Alt)ou) t)e 1<25 &on&ession &overe most of "raq: t)e "(! limite its prou&tion to fiels &onstitutin only one-)alf of 1 per&ent of t)e &ountrys total area? By 1<5> t)e only fiel bein evelope =as ir#u# an only t)en i &ommer&ial prou&tion in substantial quantities bein until t)is year: ei)teen years after t)e first e'ploration of t)e area?; "n 1<6>: t)e same year in =)i&) t)e Oranisation of (etroleum %'portin !ountries O(%!7 =as establis)e in Ba)a: t)e "raqi overnment revo#e t)e "(!s &on&ession for << per&ent of "raqi territory: limitin t)eir &on&ession area to plots in operation at t)e time?<
Creation of the Iraq National Oil Company T)e "raq 0ational Oil !ompany "0O! 7 =as &reate in 1<64: leavin t)e &ountry in t)e unusual situation of )avin t=o prou&tion tra&#s =)i&) =ere in &ompetition =it) ea&) ot)er? At t)e time t)e "(! an its subsiiaries t)e /osul (etroleum !ompany an t)e Basra (etroleum !ompany =ere still responsible for t)e vast majority of "raqi prou&tion:< =)i&) by t)e 1<6>s =as rea&)in 1 million barrels per ay bp7? "n t)e late 1<6>s: "raq sine a series of eals =it) ot)er forein &ompanies: notably %ntreprise es Re&)er&)es et es A&tivites (etrolieres %RA(7: for offs)ore areas in sout)ern "raq: an t)e ,oviet +nion uner t)e "raq-,oviet pa&t of 1<6 =)i&) eventually le to t)e evelopment of t)e Rumaila fiel1>? /ean=)ile relations bet=een t)e overnment an t)e "(! &ontinue to eteriorate? )en ,yria raise transit fees on t)e Banias pipeline in 1<66: t)e "(! refuse to pay: 6 Bamber: ames T)e Cistory of t)e Britis) (etroleum !ompany Dolume 2: Cambridge University Press: 1<<4? @ealis: Re' T)e eal *imensions of Oil an .as in "raq: Cambridge University Press: 0ovember 2>>11? < "raqs Oil ,e&tor (ast: (resent an $uture: !evenue "atch Institute: retrieve 34 anuary 2>13? 1> "raq - (ost orl ar "" T)rou) t)e 1<>s: US Library of Congress : retrieve 4 anuary 2>13?
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t)e ,yrians &lose t)e pipeline an t)e "raqi overnment lost a lot of revenue? )en t)e ,ueE !anal =as &lose as a result of t)e 1<6 /ile %ast ar: t)e overnment emane a premium on oil arrivin ire&tly at t)e /eiterranean by pipeline t)at =as &omparable to rates pai to ibya? T)e "(! refuse: responin t)at "raqi oil =as a )eavier rae an more e'pensive to pro&ess? "(! &ontinue to &ontrol t)e &ore of "raqi prou&tion but t)e overnment maintaine its po=er by at one stae in&reasin transit fees t)rou) Basra port overni)t by 12>> per&ent? 11 "n 1<> t)e "(! =as fully nationalise?<
Iraq National Oil Company INOC! "raqs state-o=ne oil &ompany t)e "raqi 0ational Oil !ompany "0O!7 =as foune in 1<64 an too# over all aspe&ts of t)e inustry after nationalisation of t)e "raq (etroleum !ompany until it =as issolve by t)e overnment of ,aam Cussein in 1<; into its subsiiary operatin &ompanies?12 $rom 2>> on=ars: various pie&es of leislati on =ere put before t)e "raqi parliamen t proposin t)e revival of t)e "0O!?13
Creation " coe#istence $ith the IPC T)e &ompany =as &reate to buil "raqi national e'pertise in t)e inustry: =)i&) at t)e time =as still ominate by estern majors: in&luin t)e leain &onsort ium in "raq at t)e time: t)e "raq (etroleum !ompany "(!7? T)e "0O! =as rante e'&lusive ri)ts uner "raqi la= to evelop oil &on&essions in t)e < in 1<61? T)e "0O! &)airman of t)e boar =as iven &abinet ran#: to allo= t)e &ompany t)e politi&al aut)ority to evelop? "n 1<6 t)e "raq-,oviet proto&ol brou)t in ,oviet e'pertise to evelop t)e Rumaila fiel? "t =as one of a number of areements =it) e'perts from &ountries outsie t)e &ompanies in t)e "(!: as t)e "0O! sou)t to evelop its o=n internal &apa&ities? 1>
%ole control T)e nationalisation of t)e inustry in staes bet=een 1<61 an 1<5 left t)e "0O! as sole operator in "raq? T)e &ompany manae to in&rease prou&tion from 1?4 million barrels per ay bp7 in 1<4 to 3 million bp in 1<;>: alt)ou) prou&tion =as t)en )it by t)e outbrea# of =ar =it) "ran?14 But just as it aine sole &ontrol over t)e inustry: t)e "raqi overnment impose more politi&al &ontrol? A la= in 1<6 mae t)e Oil /inister: a politi&al appointee: 11 "raqi oil post-orl ar "" T)rou) t)e 1<>s: US Library of Congress: unate? 12 "raqs Oil ,e&tor "ssues an Opportunities: James Baker Institute for Public Policy: *e&ember 2>>6? 13 !reation of "raq national oil &ompany not essential: Saudi a#ette: retrieve 4 anuary 2>13? 14 B( ,tatisti&al Revie= 2>1>: BP: retrieve 13 anuary 2>12?
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&)airman of t)e boar of t)e &ompany =)ile anot)er la= in 1<< remove all finan&ial inepenen&e from "0O!: stipulatin t)at all revenues from oil )a to pass to t)e Treasury an t)at t)e &ompany =oul be allo&ate an annual operatin buet by t)e overnment15? +pon nationalisation of t)e "(!: t)e "0O! also too# over t)e "(! subsiiaries t)e /osul (etroleum !ompany an t)e Basra (etroleum !ompany: =)i&) toet)er be&ame t)e ,out) Oil !ompany ,O!7? But a series of Baat) (arty e&rees in t)e 1<;>s establis)e a rane of ne= reional operatin &ompanies =)i&) reporte ire&tly to t)e Oil /inistry: bypassin t)e "0O!?15
Dissolution in &'() "raqs oil inustry =as )it immeiately =)en =ar bro#e out bet=een "ran an "raq in 1<;>? %'port fa&ilities at Basra an )or al-Amaya =ere amae in t)e first =ee#s? As a result: t)e "0O!s eneries in t)e 1<;>s =ere &on&entrate on builin ne= e'port &apa&ity: su&) as e'panin t)e ir#u#-!ey)an Oil (ipeline an builin t)e "(,A pipeline a&ross ,aui Arabia? "n aition: t)e &ompany tru&#e up to 25>:>>> bp t)rou) oran an Tur#ey?16 "n April 1<;: uner ne=ly appointe Oil /inister "ssam !)alabi: *e&ree 26 mere t)e "0O! =it) t)e Oil /inistry: =)i&) be&ame t)e ire&t operator in t)e inustry as =ell as its reulator? "ts subsiiaries =ere no= bro#en off into 0ort) Oil !ompany 0O!7: ,out) Oil !ompany ,O!7 an t)e Oil %'ploration !ompany O%!7?15
*ooted recreation ,ee also$ %raft la&s concerning hydrocarbons in Ira' T)e vast majority of "raqi oil e'perts =oul li#e to re-establis) t)e "0O!: in&luin former Oil /inister "bra)im Ba)r al-+loum 1: former "0O! founin &)airman Tareq ,)afiq amon ot)ers?
Nationalisation of Iraqi Oil Industry "raq raually too# &ontrol of its o=n oil inustry from international oil &ompanies "O!s7 pro&ess bean in 1<61 ene1;in 1<5 =it) t)e &omplete nationalisationinofaall assets =)i&) an prou&tion in t)ean &ountry?
15 "raq 0ational Oil !ompany: An Cistori&al An (oliti&al (erspe&tive: (iddle )ast )conomic %igest: 21 ,eptember 2>>s: US Library of Congress: retrieve 4 anuary 2>13? 1 "ntervie= =it) "bra)im Ba)r al-+loum: *i'ash: retrieve 25 uly 2>1>? 1; "raqs Oil ,e&tor (ast: (resent an $uture: James Baker Institute for Public Policy: /ar&) 2>>?
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Prelude $rom 1<61: =)en t)e revolutionary reime of Abel arim Fassim passe a la= eprivin t)e "raq (etroleum !ompany "(!7 of t)e ri)t to prospe&t in <
+#propriation *urin t)e late 1<6>s anof earlyIPC 1<>sassets "raq &ontinue to be issatisfie =it) t)e =ay t)e "(! manae prou&tion levels in "raq base on t)eir &ommer&ial interests else=)ere: an t)ere =ere various isputes about pri&in 1 per&ent equity sta#e in "(!: somet)in =)i&) t)e ,an Remo !onferen&e of t)e reat po=ers in 1<2> )a envisae but =)i&) t)e international partners in t)e "(! )a enie t)em?2> On t)e ba&# of t)e risin tie of e&onomi& nationalism in "raq an more broaly a&ross t)e /ile %ast: t)e "(! offere in /ay 1<2 to in&rease t)e "raqi states profits: raise prou&tion: an aree to some avan&e payments on royalties? 21 But t)e offers i not prove enou) an on t)e 1 une 1<2 t)e "raqi overnment e'propriate all of t)e "(!s assets in "raq? ,aam Cussein: t)en formally vi&e-presient to A)me Cassan alBa#r: le t)e nationalisation pro&ess for t)e Baat) (arty? 22 Only t)e parent &ompany "(! =as23affe&te by t)is move? 0eit)er t)e /osul nor t)e Basra) &ompanies =ere in&lue? "n 1<3: "raq an t)e "(! settle t)eir &laims an &ounter-&laims? T)e "(! aree to pay nearly +, G35> million to "raq as &ompensation for revenue lost to "raq over t)e years =)en "(! =as sellin "raqi oil? "n return: t)e overnment aree to provie t)e "(! =it) 15 million tons of ir#u# &rue free of &)are: value at t)e time at over G3>> million: in a final settlement of "(! &laims? T)e /osul (etroleum !ompany surrenere its &on&ession to t)e overnment?23
Nationalisation of the ,asra Petroleum Company %ven follo=in t)e outbrea# of t)e 1<3 9om ippur =ar: "raq i not nationalise t)e entire Basra (etroleum !ompany B(!7? On t)e O&tober t)e overnment announ&e t)at it )a nationalise t)e s)ares of t)e Ameri&an &ompanies %''on an /obil7 in retaliation for t)e +nite ,tates support of "srael: an later t)at mont) it also nation1< (ost-orl ar "" T)rou) t)e 1<>s: US Library of Congress: retrieve 4 anuary 2>13? 2> "raq - t)e Tur#is) (etroleum !ompany: US Library of Congress : retrieve 4 anuary 2>13? 21T)e 0ationaliEation of t)e "raqi (etroleum !ompany: International Journal of (iddle )ast Studies : 2< anuary 2>>>123 ,)=aran: Benjamin /ile %ast Oil "ssues an (roblems: Schenkman Publishing: 1<?
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alise t)e s)ares of Royal *ut&) ,)ell for similar reasons? Co=ever in *e&ember 1<5 (resient Ba#r announ&e t)e &omplete ta#eover of forein interests in t)e B(!: &ompletin t)e nationalisation pro&ess?23
Impact of -ars and %anctions on Iraq Bet=een 1<;> an 2>13 "raq )as enure t)ree major =ars 24 an stri&t e&onomi& san&tions bet=een 1<<> an 2>>3? 25 "raqs oil infrastru&ture =as amae in t)e "ran-"raq ar of t)e 1<;>s: t)e .ulf ar of t)e early 1<<>s an t)e "raq =ar of t)e early 2>>>s: =)ile +0 san&tions from 1<<> to 2>>3 severely limite t)e &ountrys ability to e'port oil26 an ain a&&ess to t)e latest te&)noloy to evelop its fiels? 2 T)e &ombine effe&t of =ars an san&tions )ave resulte in ramati& flu&tuations in "raqs oil prou& tion an e&onomi& involvement in t)e =orl mar#et?26
Iran.Iraq -ar &'(/.&'(( "raqs oil prou&tion rea&)e its all-time pea# of 3?5 million barrels per ay bp7 in 1<< prior to its invasion of "ran: but t)e =ar )a a qui&# an ebilitatin impa&t on "raqs prou&tion &apability?26 "raqs t=o primary offs)ore e'port terminals on t)e (ersian .ulf: /ina al Ba#r an )a=r al Amaya): as =ell as t)e Basra refinery: =ere severely amae by "ranian atta&#s in t)e openin =ee#s of t)e &onfli&t ? 2; T)e estru&tion of "raqs (ersian .ulf terminals &ause to rely e'&lusively on &lose pipelines t)e /eiterranean for e'ports ?2< T)en in 1<;2 it,yria: allie =it) "ran: t)eto 65>:>>> bp Banias pipeline : =)i&) )a been a vital "raqi a&&ess route to t)e /eiterranean ,ea an %uropean oil mar#ets:3> leavin "raq =it) only t)e pipeline to *ortyol in Tur#ey?31 Oil prou&tion roppe to 2?5 million bp in 1<;> an by 1<;3 )a fallen to less t)an 1 million bp? 32 By 1<;3: "raqs e'port &apabilities =ere only >>:>>> bp: or less t)an 3> per&ent of operable fiel prou&tion &apa&ity at t)at time?3> (artially in an attempt to brea# a stalemate t)at )a settle by 1<;4:33 "raq intensifie its atta&#s on "ranian &ommer&ial s)ippin? A&&orin to aut)or %fraim ars): ,aam Cussein )a )ope t)is =oul provo#e "ran to &lose t)e ,traits of CormuE: a &riti&al s)ippin lane in t)e (ersian .ulf? T)is mi)t )ave left po=ers su&) as t)e +nite 24 "raq profile: BBC: retrieve 2; 0ovember 2>11? 25 ere ,an&tions Ri)tH: *e& .ork /imes: retrieve 2 uly 2>>3? 26 !R, Report for !onress: US Library of Congress: 23 ,eptember 2>>4? 2 (layin for "raqs ja&#pot: C** (oney 16 April 2>>3? 2; Oil in t)e 1<;>s: US Library of Congress: retrieve 2< 0ovember 2>11? 2< %l AE)ary: /?,? T)e "ran-"raq =ar an )istori&al: e&onomi&: an politi&al analysis: !outledge: 1<;4? 3> "ran-"raq ar 1<;>-1<;;7: lobal Security: retrieve 12 *e&ember 2>11? 31 %l AE)ary: /?,? T)e "ran-"raq =ar an )istori&al: e&onomi&: an politi&al analysis: !outledge: 1<;4? 32 !R, Report for !onress: US Library of Congress: 23 ,eptember 2>>4? 33 "ran-"raq ar 1<;>-1<;;7: lobal Security: retrieve 12 *e&ember 2>11?
15
,tates little &)oi&e but to intervene ? 34 "nstea: "ran re&ipro&ate t)e ne= =ave of assaults by atta&#in tan#ers &arryin "raqi oil from u=ait: alon =it) any tan#er of ot)er (ersian .ulf states supportin "raq?35 T)e resultin Itan#er =arI: as it )as &ome to be #no=n: brou)t e'tensive amae to "raqi an "ranian s)ippin &apability an t)at of ot)er .ulf states: an reu&e s)ippin in t)e .ulf by 25 per&ent by 1<;4?33 )ile amae to oil installations bot) in "raq an "ran =as e'tensive: some observers: su&) as %l AE)ary: )ave sueste t)at t)e real amae to "raqi an "ranian oil se&tors &ame in t)e form of lost revenue?36 T)e =ar eplete "raqs forein e'&)ane reserves: evastate its e&onomy: an left t)e &ountry sale =it) forein ebt of more t)an +, G4> billion:3 parti&ularly to ,aui Arabia an u=ait? By 1<;;: "raq )a to rely on a s)rin#in sour&e of oil revenue =)i&) ener ate only G11 billion: &ompare =it) G26 billion in 1<;>?3;
Persian 0ulf -ar &''& After "raq invae u=ait in Auust 1<<>: a +, an +-le &oalition initiate a massive aerial &ain aainst t)em in anuary 1<<1? 0early a mont) of air stri#es 3< tarete primarily "raqs ele&tri&ity an fuel prou&tion infrastru&ture: 4> roppin aroun 12>> tons of bombs to s)ut o=n t)e national refinin an istribution system?41 "raqs t)ree biest refineries: Baiji: Basra an *oura: =ere all bombe in t)e &oalition air &ain:42 as =as t)e stratei& $a= peninsula: site of t)e )or Al Amaya an /ina al Ba#r e'port terminals: 3< =)i&) )a only re&ently been restore to near full &apa&ity after t)e "ran-"raq =ar?42 T)e air &ain =ipe out many of "raqs oil fa&ilities 3; an appro'imately ;> per&ent of its refinin &apa&ity =as amae? 41 Aitionally: more t)an )alf of "raqs 2> ele&tri&al enerator sites =ere &ompletely estroye: 4> renerin its remainin unbombe assets ysfun&tional:43 an 42 of its 53 bries =ere renere impassible? 44
%anctions &''/.1//2 "raq =as uner san&tions impose by t)e +nite 0ations ,e&urity !oun&il +0,!7 from Auust 1<<>: =)en "raq invae u=ait: until /ay 2>>3: after ,aam Cusseins re34 ars): %fraim T)e "ran-"raq ar: 1<;>-1<;;: 0s1rey Publishing: 2>>2? 35 Tan#er ar 1<;4-1<;;: (ilitary History )ncyclo1edia: 2 O&tober 2>>2? 36 %l AE)ary: /?,? T)e "ran-"raq =ar an )istori&al: e&onomi&: an politi&al analysis: !outledge: 1<;4? 3 "raq %&onomy: /%S: retrieve 12 *e&ember 2>11? 3; "raq e&onomi& san&tions an &onsequen&es: 1<<>J2>>>: /hird "orld 2uarterly: < Auust 2>1>? 3< Tu&#er: ,pen&er T)e %n&y&lopeia of /ile %ast ars: ABC3CLI0: 2>1>? 4> Cyper=ar - t)e lea&y of *esert ,torm: 4ederation of American Scientists: retrieve 12 *e&ember 2>11? 41 !)apter D" - t)e air &ain: 4ederation of American Scientists: retrieve 12 *e&ember 2>11? 42 .)areeb: %mun an *ou)erty: Bet): Cistori&al i&tionary of "raq: Scarecro& Press: 2>>4? 43 "raq e&onomi& san&tions an &onsequen&es: 1<<>J2>>>: /hird "orld 2uarterly < Auust 2>1>? 44 Cyper=ar - t)e lea&y of *esert ,torm: 4ederation of American Scientists: retrieve 12 *e&ember 2>11?
16
ime )a been topple? A&&orin to 4oreign Affairs maaEine t)e san&tions =ere t)e lonest runnin: most &ompre)ensive: an most &ontroversial in t)e )istory of t)e +nite 0ations:45 virtually &uttin "raq off from t)e =orl e&onomy =it) &atastrop)i& &onsequen&es for bot) t)e e&onomy an t)e people of "raq?43 T)e san&tions in&lue a ban on all trae: an oil embaro: a freeEin of "raqi overnment finan&ial assets abroa: an arms embaro: suspension of international fli)ts: an banne finan&ial transa&tions? T)e +0,! also &alle upon member states to enfor&e naval an air blo&#aes aainst "raq?43 %&onomi& impa&ts in&lue: bute&rease =ere not limite e&rease inustrial an &ommer&ial parts an fuel: e'portsto an a&&ess toimports forein of &urren&y: loss of trae partners leain to t)e &losure of business an inustry: inflation: emeren&e of bla&# parallel7 mar#ets: e&rease overall e&onomi& a&tivity inustry: &ommer&e: ari&ulture: et&7: an t)e &ollapse of publi& an private infrastru&tu re? ,an&tions also too# a lare )uman toll: =it) &lose to 1 million estimate by +0"!%$ to be ea bet=een 1<<1 an 1<<; ue to mass starvation an isease?46 Beinnin in 1<<6: t)e +nite 0ations implemente its Oil-for-$oo (roram: =)i&) allo=e "raq to sell oil to finan&e t)e pur&)ase of )umanitarian oos? "raq =as permitte to sell G2 billion =ort) of oil every si' mont)s: =it) t=o-t)irs of t)at amount to be use to meet )umanitarian nees? "n 1<<; t)e limit on t)e level of "raqi oil e'ports uner t)e proram =as raise to G5?26 billion every si' mont)s: an in *e&ember 1<<< t)e &eilin on "raqi oil e'ports uner t)e proram =as remove? 4 T)e proram mae available vast funs for t)e pur&)ase of foo: mei&ine: an essential &ivilian oos an G24?4 billion =ort) of oos =ere elivere to "raq from t)e prorams in&eption until 0ovember 2>>2?45
3%.led invasion 1//2 "raqi oil installations suffere little amae urin t)e 2>>3 +,-le invasion of "raq: =it) an estimate nine =ell s set on fire? But oil infrastru& ture =as tarete for atta&# by insurents an smulers on many o&&asions in t)e invasions immeiate aftermat) an in t)e follo=in years ?4;4< "n aition: as most of "raqs po=er is enerate from oil: =it)out a steay supply po=er plants =ere unable to rea&) &apa&ity an bla&#outs =ere frequent in t)e mont)s follo=in t)e invasion?5> /ost atta&#s fo&use on pipeline systems in nort)ern "raq: espe&ially t)e ir#u#-!ey)an oil pipeline: =)i&) impa&te t)e overnments ability to ain e'port revenues? ,out)ern pipeline infrastru&ture =as also tarete as a means of ma#in oil an refine prou&ts more vulnerable to t)eft an iversion? Ci)ly-oranise smulin 45 !ontainin "raq ,an&tions or#e: 4oreign Affairs: uly-Auust 2>>4? 46 %ffe&ts of "raq ,an&tions: lobal Issues: 2 O&tober 2>>5? 4 About t)e Oil-for-$oo (roramme :U*: retrieve 13 *e&ember 2>11? 4; "raq Oil an .as eislation: Revenue ,)arin: an +?,? (oli&y: US Congressional !esearch Service: 3 0ovember 2>>>;? 5> "raqs Oil ,e&tor One 9ear After iberation: Brookings Institution: 1 une 2>>4?
1
operations leverae supply an pri&e imbalan&es in t)e "raqi refine fuel mar#et to &reate lu&rative oil sale opportunities? T)e +, *epartment of *efense estimate t)at in one &ase as mu&) as > per&ent of t)e fuel pro&esse at Baiji =as lost to t)e bla&# mar#et: possibly as mu&) as G2 billion a yearK4; see also 0il /heft in Ira'7? T)e sabotae of "raqs net=or# of pipelines serve to &reate an in)ospitable environment for international oil &ompanies "O!s7: leain many to )alt t)eir operations in "raq an ivert investments to more stable se&urity environments?5> "nitiatives su&) as t)e (ipeline %'&lusion @ones (%@s7: establis)e in 2>> in orer to restri&t a&&ess to vital oil arteries an buil obsta&les for atta&#s: )elpe improve t)e se&urity of some of "raqs oil infrastru&ture ? 51 But violen&e an atta&#s on infrastru&ture &ontinue an: as of late 2>11: t)e se&urity situation in "raq remaine iffi&ult?52
Iraq4s Oil Industry post.1//2 Durin5 the insur5ency A&&orin to inustry analyst *aniel 9erin: in 2>>3 t)e "raqi oil inustry =as sufferin from years of nele&t an la&# of investment: as =ell as &)aoti& manaement follo=in t)e &ollapse of t)e Baat)ist reime? At t)is stae: of ;> is&overe oil fiels only 23 )a been put into prou&tion ue to t)e isruption of =ar an san&tions in pla&e t)eformer 1<;>s? T)amir .)a)ban =)o be&ame of Oil7=it) an ()ilipsin&e !arroll !%O of ,)ell Oil +,A7 be&ame t)e)ea &oreofoft)e t)e/inistry team &)are revivin t)e inustry? T)e t=o men set a taret of rea&)in a prou&tion level of 3 million barrels per ay bp7 by t)e en of 2>>4? !arroll state t)at t)e urent priority for t)e restoration of t)e oil inustry an t)e rest of t)e e&onomy must be se&urity? 53 As t)e anti-Ameri&an insuren&y bean to intensify an t)e se&urity situation eteriorate: oil inustry infrastru&ture also &ame uner atta&#? (ipelines =ere reularly bombe from 2>>3 on=ars 54 an in 2>>4: insurents mounte an atta&# aainst t)e Al-Amiya platform usin sui&ie bombers in t)ree small &rafts: =)i&) rea&)e =it)in 3> yars of t)e installation before t)ey =ere s)ot by "raqi uars? 55 $rom t)e fall of ,aam up until 2>>;: t)ere =ere =ell over 3>> in&ients affe&tin t)e interity of oil fa&ilities: an oil prou&tion remaine belo= taret levels? (rou&tion fell s)ort of t)e oals set an t)e ne= oal for oil prou&tion by 2>> =as roppe in 56
2>>6 to 2?1 million bp? 51 "raqi oil pipeline prote&tion earns a=ar for +?,? %nineer: UPI: < /ar&) 2>>11? 53 9erin: *aniel: T)e Fuest: Penguin Press: onon: 2>11? 54 "raq (ipeline at&): IAS: retrieve 24 0ovember 2>11? 55 "raq oil )opes )ine on s)ielin inustry: )nergy %aily ; O&tober 2>1>? 56 !oresman: Ant)ony an *avies: %mma "raqs insuren&y an t)e roa to &ivil &onfli&t: reen&ood Publishing rou1: 2>>;?
1;
Restructurin5 of economy in occupied Iraq On t)e 22 /ay 2>>3: t)e +nite 0ations ,e&urity !oun&il +0,!7 passe Resolution 14;3: abolis)in san&tions aainst "raq an re&oniEin t)e +, an t)e + as t)e &ountrys o&&upyin po=ers?5 On t)e 2> ,eptember 2>>3: Orer 3< =as issue by (aul Bremer: )ea of t)e !oalition (rovisional Aut)ority !(A7: t)e transitional overnment establis)e by t)e +, an its allies follo=in t)e invasion of "raq? T)is orer abolis)e "raqs ban on forein investment: allo=in to o=n up toin&luin 1>> per&ent of all se&tors ot)er t)an natural resour&es? Overforeiners 2>> state enterprises: ele&tri&ity: tele&ommuni&ations an 5; p)arma&euti&als =ere privatiEe? +ner t)e reforms: in&ome an &orporate ta'es =ere &appe at 15 per&ent an tariffs slas)e to a universal 5 per&ent rate: =it) none impose on foo: rus: boo#s an ot)er )umanitarian imports?5< T)e reforms implemente =ere es&ribe by orl Ban# e&onomist osep) ,tilitE as Lan even more rai&al form of s)o&# t)erapy t)an pursue in t)e former ,oviet =orl?K6> an "raq =as brane by t)e )conomist maaEine as a &apitalist ream?5< BB! &orresponent 0i&# ,prinate =arne at t)e time t)at many "raqis may see t)e moves to privatiEe as a sell-off: =it) +, multinationals seen to et t)e majority of t)e re=ars? Co=ever +, Treasury ,e&retary o)n ,no= reje&te t)e suestion t)at t)e +, ominate t)e raftin of reforms: assertin t)at t)ey =ere base on t)e ieas of t)e "raqi .overnin !oun&il?61 As of une 2>1> t)e +nite ,tates )a allo&ate G1?< billion to t)e "raqi oil an as se&tor =it) t)e obje&tive of moernisation: but ene its ire&t involvement in t)e first quarter of 2>>;? A&&orin to reports by +, overnment aen&ies an international oranisations: lon-term "raq re&onstru&tion &osts &oul rea&) +, G1>> billion or )i)er?62
Proposed ne$ le5islation ,ee also Hydrocarbon Legislation in Ira'"n $ebruary 2>> t)e +,-ba&#e "raqi &abinet approve t)e first raft of a ne= Oil an .as a= =)i&) =oul ive forein &ompanies t)e lon-term &ontra&ts an safe leal frame=or# t)ey )a been see#in? ,ome analysts an labour roups &riti&iEe t)e pro&ess of t)e raftin of t)e la=: =arnin t)at it is s#e=e in favour of forein firms an t)at it &oul )ei)ten tensions an sprea instability? T)e initial raft spe&ifie t)at up to t=o t)irs of "raqs #no=n reserves =oul be evelope by multinationals uner &ontra&ts lastin for 15 to 2> 5 Resolution 14;3: U* Security Council, 22 /ay 2>>3? 5; !oalition (rovisional Aut)ority Orer 0umber 3<: Ira' Coalition: retrieve 25 0ovember 2>11? 5< ets all o to t)e yar sale: )conomist: 25 ,eptember 2>>3? 6> Ba)a 9ear @ero: Har1ers: ,eptember 2>>4? 61 "raq aopts s=eepin reforms: BBC: 21 ,eptember 2>>3? 62 *oin Business in "raq: US Commercial Service : 2>12?
1<
years? T)is =oul represent a brea# from normal pra&ti&e in t)e /ile %ast: a&&orin to "(,: an &ivil so&iety roups an union leaers &omplaine t)at t)ey )a been left out of t)e raftin pro&ess? !riti&s &laime t)at uner t)e la=: o=ners)ip of t)e oil reserves =oul remain =it) t)e state in form: but not in substan&e? 63 $ollo=in repeate elays an several furt)er rafts: as of late 2>12 no frame=or# )yro&arbons la= )a yet been passe for "raq? T)e prospe&t of t)e privatiEation of "raqs oil inustry =as parti&ularly oppose by trae unions in o&&upie "raq: an =as es&ribe by /he uardian as Ia re lineI for t)e unions an a Ire raI to t)e =or#ers on t)e front line? T)ey vo=e to resist any privatisation of =)at t)ey see as t)eir national assets? 64 !on&erne t)at t)e ne= )yro&arbon leislation =oul lea "raqs oil inustry to full privatisation: in $ebruary 2>> t)e labour unions sent a letter to "raqi (resient alal Talbani urin )im to re&onsier t)e Oil a= raft: &ommentin t)at Iprou&tion-s)arin areements are a reli& of t)e 1<6>s??? t)ey =ill re-imprison t)e "raqi e&onomy an impine on "raqs sovereinty sin&e t)ey only preserve t)e interests of forein &ompanies?I Offi&ials from t)e "raqi overnment efene t)e la=: sayin it represente a step for=ar for t)e =ar-torn &ountry an t)at oil revenues =oul be istribute to all 1; provin&es base on population siEe: an reional aministrations =oul )ave t)e aut)ority to neotiate &ontra&ts =it) international oil &ompanies?63
Licensin5 rounds 1//'.1/&1 $or furt)er etail: see separate arti&les on iniviual biin rouns7? Cussein ,)a)ristani: a nu&lear s&ientist by trainin =)o )a been imprisone urin Cusseins reime: return e from e'ile in !anaa an =as appointe as Oil /inister in 2>>6? Ce =as to oversee up&omin biin rouns an =as eeme by Ira' )nergy *e&s as t)e ar&)ite&t of "raqs oil future? 65 +ner )is manate: from 2>>< on=ars "raq )el a series of open biin rouns for oil &ontra&ts: beinnin =it) t)e first li&ensin roun =)i&) too# pla&e in 2>><: =)i&) e'perien&e varyin levels of su&&ess? T)ese be&ame t)e main avenue for forein &ompanies loo#in to invest in t)e se&tor after a 2>>; e&ision by t)e "raqi overnment to s&rap plans to a=ar no-bi s)ort-term &ontra&ts to a )anful of estern &ompanies: in&luin !)evron: %''on/obil: Total an B(?66 T)e &ontra&ts on offer at t)e biin rouns =ere te&)ni&al servi&e &ontra&ts: by =)i&) &ompanies are pai on t)e basis of a per-barrel fee for t)e oil t)ey e'tra&t?6
630e= Oil a= ,een as !over for (rivatisation: IPS: 2 $ebruary 2>>? 64 Oil an trouble =aters: uardian: < uly 2>>;? 65 ,)a)ristani: Ar&)ite&t of "raqs Oil $uture Ira' )nergy *e&s: 1 anuary 2>11? 66 "raq Reje&ts 0o-Bi !ontra&ts: "ashington Post: 12 ,eptember 2>>;? 6 Oil !ompanies Reje&t "raqs !ontra&t Terms: "all Street Journal: 1 uly 2>>
2>
Iraqi *embership of OP+C "raq is a $ouner /ember of t)e OraniEation of t)e (etroleum %'portin !ountries O(%!76; but )a its prou&tion quota suspene in 1<<> ue to "raqs invasion of u=ait uner ,aam Cussein6<
Foundation "raq )oste t)e &onferen&e t)at le to t)e founation of O(%! in Ba)a in ,eptember 1<6>: alon =it) "ran: u=ait: ,aui Arabia an DeneEuela? >? Co=ever after t)e initial years: t)e "raqi overnment bean to be&ome frustrate =it) t)e relu&tan&e of member &ountries to aopt a unifie neotiatin stan&e =it) international oil &ompanies? "nstea ea&) member &ountry )a e&ie to neotiate separately: =it) t)e result t)at t)e oil supermajors =ere able to s=it&) prou&tion a=ay from "raq in rea&tion to )ars)er overnmental emans?1? O(%! playe a #ey part in t)e nationalisation pro&ess in 1<2: proviin loans to &ompensate for a transitional perio =)ere Ba)a =oul lose revenues from t)e "raq (etroleum !ompany?2
Rivalry $ith Iran "raq =as lo&#e in rivalry =it) time nei)bourin in t)e =ar? 1<;>s"raq over O(%! prou&tion quotas: at t)e same t)at t)ey prou&er fou)t an "ran ei)t-year emane parity of quota =it) "ran at aroun 3?4 million barrels per ay bp7: but O(%! &onsistently enie t)is as "rans state proven reserves =ere )i)er: an O(%! quotas are base on reserves? 3 "n response "raq floute t)e quotas? "n 1<;6 t)en /inister of Oil "ssam !)alabi sai "raq =oul inore its O(%! quota of 1?54 million bp of e'ports: prou&in instea =)atever amount =oul best serve "raqi interests?4 T)is rivalry &ontinue in 2>11 follo=in t)e +, o&&upation of "raq: =)en "ran su&&essfully oppose a move le by ,aui Arabia to raise O(%! oil output quotas in orer to meet s)ortfalls in supplies from ibya?5As a result: no formal areement on O(%! prou&tion levels &oul be rea&)e?6 6; /ember !ountries: 0rgani#ation of the Petroleum )51orting Countries &ebsite, retrieve 2 0ovember 2>11? 6< Ope& leaves "raq oil sure off aena: 4inancial /imes 1 *e&ember 2>> /ember !ountries: 0P)C: retrieve 2 0ovember 2>11? 1 "raq - (ost-orl ar "" T)rou) t)e 1<>s: US Library of Congress: retrieve 3> 0ovember 2>11? 2 T)e "raq (etroleum !ompany 1<14-1<;2: 6a7el: 1 $ebruary 2>>5? 3 "raq - Oil in t)e 1<;>s US Library of Congress Retrieve 3> 0ovember 2>11? 4 "raq - Oil in t)e 1<;>s: US Library of Congress: retrieve 3> 0ovember 2>11? 5 "ran &alls for O(%! &uts: Arab members unli#ely to aree: /he %aily Star: 12 0ovember 2>11? 6 "ran %nery (rofile ,till O(%!s ,e&on-arest Oil (rou&er Analysis: )urasia !evie& *e&s 8 Analysis: 22 0ovember 2>11?
21
%uspension After t)e 1<<1 .ulf ar: t)e +nite 0ations ,e&urity !oun&il impose a &ontinuin ban on "raqi oil e'ports t)at remaine in pla&e until t)e Oil for $oo proram =as initiate in 1<<6? As a result: in 1<<;: O(%! formally suspene "raqs prou&tion quota: a state of affairs t)at remains as of late 2>12: )o=ever in O&tober 2>11 "raq as#e to rejoin t)e O(%! quota system by 2>14?I
Iraq OP+Citsfollo$in5 the in1//2 "raqi oil and output rea&)e )i)est in t=o e&aes $ebruary$ar 2>11 at an averae of 2?>; million bp: =)i&) also mae it t)e biest sinle &ontributor to =orl oil supply ro=t) t)at mont)? T)e =ebsite Live 0il Prices reporte t)at t)is =as eeme by O(%! to pose a t)reat to its &ontrol of t)e lobal supply of oil: an eo *rollas of t)e !entre for .lobal %nery ,tuies state t)at an e'tene perio of stability for "raq I&oul )ave a major estabilisin effe&t on O(%! an t)e oil pri&e?I; "n O&tober 2>11: t)e &ountry as#e to rejoin O(%!s quota system for &rue input in 2>14 as it rea&)e an averae of 2?< million bp? $ala) al-Amri: ire&tor of t)e ,tate Oil /ar#etin Oranisation ,O/O7: state t)at t)e &ountry aies to in&rease oil output to 3?4 million bp by 2>12 an to 4?5 million bp by 2>13? Co=ever: al-Amri ini&ate t)at t)e &ountry =oul Isee# t)e biest possible quota?I "raq =as sele&te to ta#e over t)e O(%! presien&y in 2>12: ta#in over from "ran? T)e O(%! presien&y is a &eremonial post t)at rotates amon t)e 12 members of t)e oranisation: &)osen on t)e &onsequen&e of members alp)abeti&al names: an is for a one-year term?<
Oil theft in Iraq Outri)t p)ysi&al t)eft )as been one of t)e major =ea# points in "raqs inustry sin&e t)e 1<<>s: parti&ularly &on&ernin oil prou&e at ir#u#? ;> A&&orin to a report by t)e "nspe&tor .eneral of t)e "raqi /inistry of Oil: t)e smulin of oil in t)e &ountry is a Irave p)enomenonI t)at leas to a reat loss of money an resour&es: =)i&) also refle&ts fla=s: =ea#nesses an s)ort&omins at various important levels =it)in an outsie t)e oil se&tor?;1 Bun#erin: t)e illeal removal of oil from a pipeline or ot)er istribution system: &an sometimes be as simple as rillin a )ole in t)e pipeline an &olle&tin t)e oil in a "raq Aims to oin O(%! Fuota ,ystem in 2>14: Offi&ial ,ays: Business "eek: 26 O&tober 2>11? ; O(%! member "raq oil output may affe&t future oil pri&es Live 0il Prices Retrieve 2 0ovember 2>11? < "raq %'pe&ts To Be .iven O(%! (resien&y "n 2>12 - Oil /in: !ig#one: 13 *e&ember 2>11? ;> A Cistory Of Oil ,mulin "n "raq: (usings on Ira': 5 anuary 2>>4? ;1 ,mulin !rue Oil an Oil (rou&ts ,e&on Transparen&y Report: Ira'i 0il (inistry: 2>>6?
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rum? But more &omple' operati ons involve equippin tan#ers =it) false bottoms to &on&eal illeal s)ipments ?;2 Oil bun#erin in "raq =as es&ribe as enemi& by inustry analyst /att)e= Culbert in 2>12?;3 A&&orin to bloer oel in: =)erever t)e oil is ta#en from: t)is t)eft &an ta#e ifferent forms in "raq? One form is t)e mi'in of stolen oil =it) leitimate oil: =)en a reular s)ipment is toppe up an a separate payment mae? "t may also involve fillin boats or tru&#s =it) stolen oil an eliverin t)e prou&t in tan#ers to t)e (ersian .ulf )e notes t)at in 2>>6 a stin operation &arrie out by t)e /inistry of Oil foun 166 &raft line up in rivers in Basra =aitin to epart to meet larer boats in t)e .ulf7?;4 A t)ir form is fillin up tan#er tru&#s an rivin t)e illeal oil to nei)bourin &ountries su&) as "ran: ,yria or Tur#ey ?;> After 2>>3: illeal tru&#in )as &ontinue: sometimes on a lare s&ale? "n one operation in 2>>6: poli&e seiEe 4>>:>>> barrels of oil estine for ,yria an =ort) an estimate G2; million on t)e bla&# mar#et?;4
6istory of oil smu55lin5 in Iraq ,mulin of oil bean on a lare s&ale urin t)e 1<<>s =)en t)e overnment use smulin to efy t)e +nite 0ations san&tions on t)e &ountry? *urin t)is perio tru&#s sent to Tur#ey: oran: ,yria: u=ait an ,aui Arabia: as =ell as boats oin t)rou) t)e (ersian .ulf an /ile %ast: =ere aapte for t)ese operations? Co=ever t)e problem &ontinue follo=in t)e brea#o=n of orer follo=in t)e 2>>3 +, invasion: provo#e by t)e &ollapse of t)e;> state an e&onomy: an t)e state of eneral anar&)y: follo=in t)e fall of ,aam? T)e subsiies on "raqi fuel also mae refine prou&ts bein prou&e insie "raq a taret for t)eft: espe&ially t)ose &omin from t)e Baiji Refinery: =)ere in 2>> t)e +, *epartment of *efen&e estimate > per&ent of t)e output =as bein stolen? ;5T)e *e& .ork /imes reporte t)at t)e number of retail petrol outlets near Baiji rose from just ei)t in 2>>3 to over 5> by 2>>; as t)e station o=ners &oul ain a&&ess to oil prou&ts at t)e subsiise pri&e an t)en re-sell t)em on t)e bla&# mar#et? ;6 Co=ever t)e overnment too# steps to reu&e oil prou&t subsiies in 2>>? ;
Connection to insur5ency A&&orin to t)e +, /inistry of *efen&e: a variety of &riminal: insurent: an militia ;5
roups enae in t)e t)eft an illi&it sale of oil to fun t)eir a&tivities? ,in&e 2>>3 t)ere )ave been )unres of atta&#s on "raqs oil inustry an analysts ;2 %'plorin Oil *ata: 01en0il: 2>12? ;3 "raqs Rise To 0o? 2 Oil (rou&er "n O(%! "s Ba 0e=s $or orl: 4orbes, 13 Auust 2>12? ;4 Co= "raqi Oil ,mulin .reases Diolen&e: (iddle )ast 4orum: 2>>6? ;5 /easurin ,tability an /easurin ,tability an ,e&urity in "raq ,e&urity in "raq: US (inistry of %efence: une 2>>? ;6 "raqMs "nsuren&y Runs on ,tolen Oil (rofits: *e& .ork /imes: 16 /ar&) 2>>; ; "raq %nery Outloo#: International )nergy Agency: < O&tober 2>11?
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t)in# t)at many su&) atta&#s: =)i&) are bille as politi&al a&ts of insuren&y: may in fa&t be t)e =or# of oraniEe &rime syni&ates in orer to ma'imise t)e potenti al for t)eft? A&&orin to reports in t)e *e& .ork /imes : pipelines are amae in orer to for&e transport of oil by tru&#: so it &an t)en be stolen? $inan&e /inister Ali Alla=i estimate in 2>>6 t)at insurents =ere ettin bet=een 4> per&ent an 5> per&ent of "raqs oil revenues?;; oel in reporte in )is blo t)at some of t)e se&urity for&es eploye to prote&t t)e lines also &ollue in t)ese illeal a&tivities? $or instan&e in 2>>4 t)e *efen&e /inistry )ire t)e abouri tribe to efen t)e pipeline to Tur#ey in ,alain an Tamim provin&es: but t)e tribe =as reporte to be involve in smulin sin&e an beyon t)e ,aam Cussein perio? A 2>>< investiation by t)e Oil /inistrys "nspe&tor .eneral foun t)at army units =ere stealin from t)e same line: most estine for mobile refinin stations in "raq or sol to fuel fa&tories an po=er stations?;<
*eterin5 "raq )as suffere a la&# of &orre&t meterin from its =ell)eas an pipelines sin&e at least 2>>3? T)e "nternational Avisory an /onitorin Boar "A/B7: &reate in 2>>3 to oversee manaement of "raqs natural resour&es urin a transitional perio: sai in 2>>6 t)at years of requestin an a&&urate meterin system )a brou)t no results<>? T)e "A/B first e'presse &on&ern at t)e la&# of meterin in uly 2>>4? <1 A 2>11 revie= of an auit by (ri&e=ater)ouse!oopers of "raqs oil revenue manaement foun t)at t)e plan to<2 fully install an &alibrate a meterin system by 2>12 =as only 3< per&ent &omplete? A&&orin to t)e "A/B t)e absen&e of meterin infrastru&ture represente an internal =ea#ness t)at &oul lea to t)e iversion of oil resour&es? T)e absen&e of su&) a system meant t)e !(A =as unable to estimate t)e amount of petroleum t)at =as smule in 2>>4?<3 T)e la&# of effe&tive meterin &an lea to lare quantities of &rue bein stolen: sin&e even a 1 per&ent is&repan&y in t)e stores of an ultra-lare &rue &arrier +!! 7 =it) 35>:>>> tonnes ea =ei)t &apa&ity =oul be equivalent to 5>> entire tru&#loas of about 1:>>> allons ea&)? "n 2>> .)ait) Abul-A) a reporte in /he uardian t)at one tribe in Basra =as payin +, G25>:>>> a =ee# to arme unmen to se&ure t)e Basra Oil Terminal =)ile t)ey loae tan#ers =it) unmetere &aroes of oil?<4
;; Oil &orruption fuels insuren&y in "raq: *e& .ork /imes: 5 $ebruary 2>>6? ;< A Cistory Of Oil ,mulin "n "raq: (usings on Ira': 5 anuary 2>>4? <> "raqs Oil /eterin ,ystem /ysteriously *elaye: Reuters: $ebruary <: 2>>6 <1 "A/B Revie=s (/. Auit of t)e "raq *evelopment $un: !elief"eb: 15 uly 2>>4? <2 "raq is far be)in on oil meterin system: auits fin: Platts: 1> /ay 2>11? <3 Report of t)e "nternational Avisory an /onitorin Boar of t)e *evelopment $un for "raq: IA(B: 22 /ay 2>>3? <4 Oilin t)e =)eels of =ar smulin be&omes t)e real e&onomy of "raq: uardian: < une 2>>?
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Oil 3nions in Iraq $ollo=in t)e fall of ,aam Cussein: unions forme sin&e 2>>3 =it) t)e oal of blo&#in privatisation of infrastru&ture an raisin &on&erns about ne= raft la=s vie=e as too frienly to=ars international oil &ompanies "O!s7? Co=ever in 2>1> oil unions =ere still te&)ni&ally illeal in "raq: a lea&y of t)e Cussein reime: <5 =)i&) banne t)em in 1<;?<6 Policy"raqi 4or3 T)e? (arliamentarian &ountrys labour0assir movement =assai es&ribe I=ea#eneI t)e lobaluner al-%sa=i unionsas)a no spe&ial by prote&tions um
la= an some in t)e labour movement a&&use t)e /ali#i overnment of tryin to =ea#en t)em even furt)er?<6 "n 2>>< t)e "raqi unions lobbie aainst "raqs ne= oil &ontra&t sine =it) international oil &ompanies B( an !0(! for t)e Rumaila oil fiel? T)e prin&ipal &omplaints =ere t)at t)e eal =as bro#ere in t)e absen&e of ne= national enery leislation: stalle by a feu bet=een "raqs Arabs an urs: &on&erns t)at t)e terms of t)e &on tra&t =oul over&ompensate &ompanies: an t)e possibility eals =oul lea to reater unemployment in t)e se&tor?<6 "n /ar&) 2>1> a stri#e an emonstration =as )el at t)e ,out) Refineries !ompany ,R!7 )eaquarters near Basra: =it) =or#ers &allin for a reater per&entae of t)e &ompanys buet to o to employees: an for #ey members of t)e aministration to be sa&#e? T)ere =as an ensuin by t)e "raqi Army t)e Oiloffi&e /inistry transferre five unionist =or#ers &ra&#o=n from t)e Basra refinery to t)ean Ba)a of t)e <5 "raqi *rillin !ompany "*!7 in an effort to rein t)em in?
Iraqi Federation of Oil 3nions T)e "raqi $eeration of Oil +nions "$O+7 represents aroun 26:>>> =or#ers from 1> oil unions?< As of 2>1> t)e oranisation =as )eae by Cassan uma? T)e .eneral ,e&retary =as $ale) Aboo +mara? "n 2>1> &)ares =ere brou)t aainst uma an Aboo +mara by t)e state-o=ne ,out) Oil !ompany ,O!7: a&&use t)em of Iimpein t)e =or#I at oil evelopments in Basra an ma#in t)reatenin remar#s to=ars forein oil &ompanies t)at &oul put t)e e&onomy in aner?<; T)e "$O+ =as previously #no=n as t)e .eneral +nion of Oil %mployees .+O%7: t)e forerunner to =)i&) =asfrom t)e ,out)ern ,O!+7: in /ay 2>>3 by =or#er a&tivists t)e ,out)Oil Oil !ompany !ompany?+nion T)is an ot)erfoune unions from Amara: Basra an 0asiriya) provin&es: t)en mere to form t)e .+O%?<<
<5 +nion leaers ta#en to &ourt for oil se&tor issent: Ira' 0il !e1ort: 2 uly 2>1>? <6 "raqMs ea#ene +nions $i)t $orein Oil $irms: lobal Policy 4orum: 13 uly 2>>1>? << ,upport "raqi Oil or#ers: Ira'i 0ccu1ation 4ocus: retrieve 3> 0ovember 2>11?
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Federalism7 Factionalism and Re5ional Differences "raqs 2>>5 !onstitution efines t)e &ountry as a feeral republi& 1>> &omprisin of 1; overnorates or provin&esI: t)ree of =)i&) ma#e up "raqs only semi-autonomous reion: t)e uristan Reional .overnment R.7? 1>1 A&&orin to t)e +, "nstitute of (ea&e: t)e "raqi state establis)e by t)e &onstitution falls s)ort of best-pra&ti&e feeral moels an t)e &entral overnments founation is Ipossibly t)e =ea#est of any feeral moel in t)e =orl?I1>2 T)e &onstitution allo=s for t)e &reation of semi-autonomous feeral reions &omprise of one or more of t)e aministrative overnorates in "raq? To t)e e'tent t)at its po=ers o not &onfli&t =it) feeral aut)ority: a reion may )ave its o=n &onstitution an e'er&ise leislative: e'e&utive an jui&ial aut)ority over itself?1>3 A provin&e &an be&ome a IreionI in one of t=o =ays eit)er one t)ir of t)e provin&ial &oun&il votes to )ol a referenum on t)e issue or one-tent) of reistere voters in t)e overnorate as# for one? A referenum &an t)en be )el: in =)i&) feeral status is establis)e only if a majority of voters approves it?1>4 T)e only feeral reion e'istin as of late 2>12 =as t)e uristan Reional .overnment R.7? Co=ever nearly )alf of "raqs 1; provin&es )ave eit)er e&lare semiautonomy or plan to o so? 1>5 T)e question of e'a&tly =)at feeral stru&ture "raq s)oul pursue an )o= po=er s)oul be s)are bet=een t)ose =)o rule from Ba)a: t)e autonomous overnment in %rbil an t)e &ountrys provin&ial leaers: remains unresolve?1>6 "raqi (rime /inister 0ouri al-/ali#i )as traitionally been oppose to reater inepenen&e for "raqs reions: an vo=e in a 2>11 spee&) to blo&# any efforts by t)e provin&es to brea# a=ay: as#in I=)ats t)e reason for )avin a ruler in Ba)aHI an =arnin t)at Lpo=er-s)arin &annot be t)e founation of solvin our problems?I1> A&&orin to a stuy for Al Ja#eera: t)e requirement t)at overnorates 1>> "raqi !onstitution U* Ira', retrieve 13 *e&ember 2>11? 1>1 Ba&#roun 0ote "raq: US %e1artment of State: 2 /ay 2>11? 1>2 ea# Diability T)e "raqi $eeral ,tate an t)e !onstitutional Amenment (ro&ess: United States Institute of Peace: uly 2>>6? 1>3 "raq "nvestment uie J se&on eition: Herbert Smith LLP: retrieve 13 *e&ember 2>11? 1>4 T)e %mpo=erment of .overnorates in "raq: Al Ja#eera Center for Studies: 12 uly 2>12? 1>5 T)e brea#up /ore "raqis bi for autonomy: Al Ja#eera: 22 *e&ember 2>11? 1>6 "raqs $eeralism Fuanary: International Crisis rou1: 2; $ebruary 2>12? 1> "raq premier 0ouri al-/ali#i &)allenes restive provin&es: "ashington Post: 24 *e&ember 2>11?
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see#in to form a reion must submit any request to (arliament for a vote )as allo=e t)e (rime /inister to blo&# su&) appli&ations by refusin to refer t)em to (arliament?1>;
8urdistan semi.autonomous re5ion "raqi uristan is re&onise as a feeral reion in t)e "raqi !onstitution an &onsists of t)ree provin&es: *a)u#: Arbil an ,ulaymaniya)? T)e urs )ave t)eir o=n (arliament an (resient an &omman t)eir o=n se&urity for&es?1>< As far as )yro&arbons are &on&erne: uner t)e R.s interpretation of t)e !onstitution =)i&) states t)at su&) resour&es are Lo=ne by t)e people of "raq in all t)e reions an overnatesK7: t)e reional overnment )as t)e ri)t to sin t)eir o=n &ontra&ts for oil e'ploration an prou&tion? Co=ever Ba)a isarees an &onsiere su&) &ontra&ts as illeal? 11> Tensions bet=een t)e &entral overn ment an t)e nort)ern reion es&alate follo=in t)e entry of a series of oil majors su&) as %''on/obil an Total into "raqi uristan: as =ell as onoin isputes over arranements for e'ports of )yro&arbons? ,ee also +! Contract %is1utes an +! )51ort %is1utes
%outhern provinces $eeralist tenen&ies )ave arisen in multiple provin&es in "raqs oil-ri&) sout): in&luin /aysan: arbala: 0ajaf an Babel: but Basra )as t)e sout)s most evient an persistent pro-feeral tenen&y?111 T)e Basra reion is )ome to "raqs only sea port an: a&&orin to *i'ash ne=spaper: to potentially 6> per&ent of t)e &ountrys oil? 112 Co=ever just one per&ent of Basras resients use t)e publi& =ater net=or# &ompare to 65 per&ent nation=ie7 be&ause t)e esalinate =ater is unrin#able: a&&orin to a stuy by t)e +nite 0ations? A&&orin to a report by Al Ja#eera: Basra see#s inepenen&e over =)at it sees as an unfair istribution of t)e provin&es enery revenues: =it) leaers parti&ularly anry over a G1 billion eal =it) oil major ,)ell to evelop t)ree oilf iels in sout)ern "raq: =)i&) t)ey say t)e &entral overnment neotiate =it)out t)eir input? 113 "n Auust 2>11: t)e Basra provin&ial &oun&il sent a eman to t)e !oun&il of /inisters in Ba)a to a&tivate t)e leal measures t)at is: to set up a referenum7 to transform Basra=it) intot)e a feeral Co=ever as ofA=a: late 2>12 t)e request for a referenum remaine !oun&ilreion? of /inisters? +ay member of parliament from t)e ,arist movement: avise t)e provin&e to re&onsier its emans to be&ome an inepenent reion an to settle for t)e Basra: %&onomi& !apital of "raq proje&t a=aitin 1>; T)e %mpo=erment of .overnorates in "raq: Al Ja#eera Center for Studies: 12 uly 2>12? 1>< !las) Over Reional (o=er ,purs "raqMs ,e&tarian Rift: *e& .ork /imes: 23 *e&ember 2>11? 11> An o&ean of reserves =aitin to be tappe: 4inancial /imes: < *e&ember 2>12? 111 ,)a)ristani an /ali#i in $eeralism !rossfire: Ira' and ulf Analysis: 6 ,eptember 2>11? 112 %s&ape from &entralism basra postpones bi for inepenen&e *i'ash: 1 $ebruary 2>12? 113 T)e brea#up /ore "raqis bi for autonomy: Al Ja#eera: 22 *e&ember 2>11?
2
approval by parliament as of 2>11: =)i&) =oul rant t)e provin&e a reater s)are of &rue oil revenues in aition to =ier po=ers? 114
%unni federalism and %aladin A&&orin to reports by t)e BB!: t)ere =as a eneral ups=in in pro-feeral sentiments in ,unni-majority areas of "raq in late 2>11: )ealine by a visit to Britain by (arliament spea#er +sama al-0ujayfi? Al 0ujayfi sai t)at ,unnis of "raq feel t)ey are bein treate by t)e &entral overnment in Ba)a as se&on-&lass &itiEens: an if no 115 &ompelle to &all for t)e establis)ment of improvement ta#es pla&e many =ill feel Ieorap)i&ally-base feeral reionsI?
T)e &entral-nort)ern overnorate of ,alain I,ala) a *inI7 )as been one of t)e leain ,unni territories =it) feeralist movements in t)e post-2>>5 era? "n O&tober 2>11: t)e ,alain overnorate &oun&il e&lare its o=n feeral status? 116 A&&orin to a report by t)e "nternational !risis .roup ,alains &oun&il emp)asise t)at it =is)e to remain part of a Iunite "raqI?11 Co=ever t)e provin&es move =as met =it) stern opposition from "raqi (rime /inister 0ouri al-/ali#is ,)ia-ominate overnment: =)o reje&te t)e &all: sayin t)e formation of reions on a Ise&tarian basisI =oul lea to Iiviin "raq an to rivers of blooI?11; As t)e form of t)e eman mae by t)e ,alain overnorate &oun&il =as illeal be&ause it =as not foune on t)e basis of a popular referenum7 it faile to affe&t ,alains status =it)in "raq? 11< "n $ebruary 2>12 ,alain offi&ials submitte t)e sinatures of t=o per&ent of12>t)e reions voters to t)e ele&toral &ommission as part of t)eir request for autonomy?
Other provinces Anbar $ollo=in t)e moves by t)e ,alain overnorate in 2>11: ot)er ,unni-majority provin&es su&) as as-ri&) Anbar also bean to ma#e &laims for a more autonomous status if Ba)a i not respon to t)eir emans? 121 T)e unemployment rate in Anbar provin&e is t=i&e t)at of Ba)a: ain to t)e sense amon resients t)at t)ey are re&eivin an unequal s)are of essential servi&es an overnme nt jobs from Ba)a? A majority of t)e provin&ial &oun&il in Anbar supports a bi for autonomy: but as 114 Basra: "raqs %&onomi& !apital: ants ,out)ern $eeral Reion Al (onitor 13 ,eptember 2>12? 115 0ujayfi +ses t)e $ or Aain: ulf Analysis: 15 O&tober 2>11? 116 "n ,ala)ain: a !onfuse $eeralism Bi: Ira' and ulf Analysis 2 O&tober 2>11? 11 "raqs $eeralism Fuanary: International Crisis rou1: 2; $ebruary 2>12? 11; "raq (/ &)ies ,unni se&tions pus)in for autonomy: .ahoo *e&s 24 *e&ember 2>11? 11< ,alain is preparin for a referenum on t)e establis)ment of t)e Reion: Investors in Ira' *e&ember 2>12? 12> ,ala)ain )ans autonomy sinatures to ele&toral &ommission: A+ *e&s 26 $ebruary 2>12? 121 "raqs $eeralism Fuanary: International Crisis rou1: 2; $ebruary 2>12?
2;
of *e&ember 2>11 t)e issue )a not yet &ome to a vote? Anbars overnor )as sai t)at Ba)as nele&t is pus)in people to=ars autonomy?122
Diyala "n *e&ember 2>11 in t)e mi'e ,unni-,)ia-ur provin&e of *iyala in t)e east of t)e &ountry:121 t)e provin&ial &oun&il announ&e t)at *iyala =oul be&ome an autonomous reion follo=in a vote of 1; to 11 in favour? But t)e announ&ement =as reverse =it)in ays penin furt)er is&ussion: follo=in protests outsie t)e &oun&il buil122
in in provin&ial Baquba an t)reats burn o=n t)e overnors Autonomy =oul &apital ive *iyala more po=er overtofinan&es: aministration an)ouse? la=s: as =ell as more &ontrol over publi& property in t)e reion?123
Revenue %harin5 Procedures in Iraq T)e 2>> raft )yro&arbon la= states t)at "raqMs )yro&arbon =ealt) belons to all of its &itiEens:124 but oes not &ontain spe&ifi& uielines for )o= oil an as revenues s)oul be istribute?125 !on&erns over t)e equitable istribution of "raqs oil revenues are one of t)e &entral issues in t)e onoin ispute bet=een t)e uristan Reional .overnment R.7 an t)e feeral overnment in Ba)a?125 Ot)er reions: su&) as Anbar in "raqs nort)=est an t)e oil-ri&) Basra reio n in t)e sout): )ave also emane more &ontrol over t)eir natural resour&es?126 A primary fo&us of t)e revenue s)arin ebate in "raq is t)e issue of =)et)er or not overnorates s)oul retain t)e ri)t to ma#e e&isions over revenues from oil an as prou&e in t)eir territory?12 T)e me&)anisms t)rou) =)i&) "raqs oil revenues are &olle&te an istribute remain &onteste? !)ief e&onomist at t)e "%A $ait) Birol =arne in 2>12 t)at unless I&onsensusI =as rea&)e on revenue-s)arin leislation: "raqs oil output ro=t) &oul be sinifi&antly slo=e: but note t)at t)ere )a been en&ourain sins of &ooperation bet=een t)e &entral overnment an t)e R. on t)is front? 12;
122 T)e brea#up /ore "raqis bi for autonomy: Al Ja#eera: 22 *e&ember 2>11? 123 "raqi ,)iite rally aainst autonomy pus) in *iyala: !euters: 15 *e&ember 2>11? 124 (arliament stuyin raft la= on petro ollarsN "nteral to oil an as la=: /he Currency *e&shound 3> une 2>11? 125 "raq Oil an .as ,e&tor: Revenue ,)arin: an +?,? (oli&y: US Congressional !esearch Service 3 /ar&) 2>1>? 126 Anbar (rovin&e: On&e a Cotbe of "raqi "nsuren&y: *emans a ,ay on Resour&es: *e& .ork /imes 2 O&tober 2>1>? 12 "raq Oil an .as ,e&tor: Revenue ,)arin: an +?,? (oli&y: US Congressional !esearch Service 3 /ar&) 2>1>? 12; "raq t)e /a#e=ei)t in .lobal ,upply: Petroleum )conomist: < O&tober 2>12?
2<
1//) draft revenue sharin5 la$ T)e R. an t)e feeral overnment in Ba)a aree on a raft revenue s)arin la= for "raq in une 2>>? 12< A&&orin to t)e raft la=: t)e feeral overnment is empo=ere to &olle&t all of "raqs oil an as revenue: =it) a priority to allo&ate t)e funs to support national priorities su&) as efense an forein affairs? T)e remainer =oul t)en be istribute to overnorates automati&ally: on a mont)ly basis: base on aree population-ensity-base per&entaes until a &ensus &an be &omplete? Of t)is remainer: t)e R. =oul re&eive a 1 per&ent s)are?12
9reatment in national bud5et T)e "raqi overnment presente its raft for t)e annual 2>12 buet la= in *e&ember 2>11N t)e total buet =as 11 trillion "raqi inars "*7: or appro'imately +, G1>> billion:13> a 21 per&ent in&rease over "raqs 2>11 buet? 131 A&&orin to Reiar Disser of t)e Ira' and ulf Analysis blo t)e 2>12 raft buet is favorable to t)e interes ts of t)e R.? T)e buet proje&ts uristans oil e'ports to amount to 15:>>> barrels per ay bp7 in 2>12: rou)ly 6? per&ent of t)e anti&ipate total "raqi aily e'ports of 2?6 million barrels? But t)e buet allo&ates 1 per&ent of t)e e'peniture buet to t)e R.? +ner t)e 2>12 raft buet: ot)er oil-prou& in overnorates re&eive one +, ollar per e'porte barrel? T)is is e'pe&te to ma#e up about 1? trillion "* in total: or less t)an a tent) of =)at t)e R. alone re&eives?13> 0il !e1ort reporte t)at allies of Co=ever a)ea al-/ali#i of t)e release t)e 2>13tobuet: (rime /inister =ere of lobbyin reu&e Ira' t)e R.s buet allo&ation: =it) many supportin a reu&tion from 1 to 12 per&ent: &onsierin t)at &urrent arranements are too enerous to t)e semi-autonomous reion? A member of parliament from t)e "raqiya list remine t)at %rbil an ,ulimaniya) are more evelope t)an t)e rest of "raq: &laimin t)at t)e buet allo&ation is unjust?132
8R0 Contract Disputes T)e "raqi !onstitution of 2>>5 is unequivo&al about t)e fa&t t)at t)e &ountrys natural resour&es: su&) as oil an as: are o=ne by Iall t)e people of "raq in all reions an overnorates?I133 T)e !onstitution also states t)at t)e feeral overnment =ill manae &itht)e oil an as "raqi fiels reional an overnates? Co=ever t)ee'tra&te o&umentfrom is ambiuous about spe&ifi&overnments ynami&s: revenue istribution an &ompeten&ies of t)e various "raqi overnmental aut)orities involve?134 12< Oil 8 as leislation an major evelopments: +!, 21 une 2>> T)e %&onomi&s of $eeralism in t)e "raqi 2>12 *raft Buet: Ira' and ulf Analysis < *e&ember 2>11? 131 "raq &abinet o#ays 2>12 buet at G1>> billion: !euters, 5 *e&ember 2>11? 132 Ba)a tarets R. buet priorities: Ira' 0il !e1ort: 1 *e&ember 2>12? 133 "raqi !onstitution: United *ations Assistance (ission for Ira', retrieve 14 *e&ember 2>11? 134 Oil an as &ontra&ts in "raq: "ho9s "ho Legal, uly 2>1>?
3>
T)is ambiuity in t)e !onstitution )as le to various &onfli&ts: sin&e t)e feeral overnment maintains t)at &ontra&ts sine unilaterally by a reional overnment i?e? t)e uristan Reional .overnment7: after t)e raft feeral oil an as la=s =ere ap prove by "raqi !oun&il of /inisters in $ebruary 2>>: are IillealI until revie= an approval by t)e "raqi /inistry of Oil? 134 T)e uristan Reional .overnment R.7 maintains t)at t)e ambiuity in t)e !onstitution allo=s for reional overnm ents to sin oil &ontra&ts =it) "O!s on t)eir o=n? T)e R. also maintains t)at obje&tions to t)eir interpretation of t)e !onstitution are a&tually attempts to limit uris) autonomy?135
IOCs defy ,a5hdad and move into 8urdistan "n 2>>6: 0or=eian enery &ompany *0O rille t)e first ne= oil =ell sin&e t)e inva sion of "raq in "raqi uristan? 136 ,in&e t)en: ot)er &ompanies )ave entere t)e reion: su&) as .enel %nerji from Tur#ey: .ulf eystone (etroleum from t)e +nite inom: Cess !orporation an /arat)on Oil !ompany from t)e +nite ,tates: Repsol 9($ from ,pain: O/D from Austria: 13 estern Oil ,ans from !anaa via its subsiiary estern@aros Resour&es:13; an ,terlin %nery from t)e +nite inom? 13< Co=ever t)e isputes over t)e R.s &ontra&ts =it) "O!s rea&)e a &riti&al point =)en t)e reional overnment announ&e: on 13 0ovember 2>11: t)at it )a a=are si' e'ploration an prou&tion li&enses to %''on/obil !orporation: t)e =orls larest oil &ompany?14> %''on =as later follo=e into t)e reion by $ren&) Total in uly 2>12: ra=n by t)e more attra&tive fis&al terms offere t)an in t)e sout) of t)e &ountry an by t)e reions vast oil reserves: by buyin a sta#e in t=o uris) e'ploration blo&#s?141 !euters reporte in ,eptember 2>12 t)at ,)ell )a also been en&ourae by t)e a&tivities of its &ommer&ial rivals to start tal#s =it) t)e R. =it) a vie= to sinin enery eals: a move enie by ,)ell e'e&utives in tal#s =it) offi&ials in Ba)a? T)e "raqi overnment )a t)reatene ,)ell =it) Iserious &onsequen&esI if it sine a eal =it) t)e reional overnment? !euters also reporte t)at 0or=eian ,tatoil )a been Iloo#in &loselyI at R. e'ploration eals?142 "n retaliation for eals stru&# in %rbil: t)e &entral overnment bean to bla&#list several of t)e &ompanies =)i&) sine =it) t)e R.? 0e=-9or# base Cess =as bla&#liste in 2>11 an in $ebruary 2>12 a overnment spo#esmen state t)at %''on =oul not be allo=e to parti&ipate in t)e up&omin fourt) biin roun an =arne t)at in t)e future t)e +, &ompany =oul )ave to &)oose bet=een its &ontra&t to evelop t)e sout)ern est Furna fiel an its ne=ly sine &ontra&ts in uristan? 143"n uly 2>12 !)evron =as also barre from biin on &ontra&ts in =ier "raq after buyin 135 rapup 1 ur: Ba)a oil offi&ials meet on %''on spat: !euters, 1 0ovember 2>11 136 *0O A,A J (,A areement in "raqi uristan: %*0 , retrieve 21 0ovember 2>11? 13 Trip report T)e future of oil in uristan: 4inancial /imes, retrieve 21 0ovember 2>11? 13; Operations "estern 6agros !esources, r etrieve 21 0ovember 2>11? 13< Operations uristan ,ana= 0ort): Sterling )nergy, retrieve 21 0ovember 2>11? 14> .iant %''on /obil enters uristan oil mar#et: +urdish lobe, 1< 0ovember 2>11? 141 "raq Blo&#s %''on i&ense Bi: "all Street Journal, 13 $ebruary 2>12? 142 "raq says ,)ell enies oil tal#s =it) uristan: !euters, 26 ,eptember 2>12? 143 "raq Blo&#s %''on i&ense Bi: "all Street Journal, 13 $ebruary 2>12?
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sta#es in t)e nort)?144 Co=ever Anan Al anabi: &)airman of t)e Oil an %nery !ommittee in t)e "raqi !oun&il of Representatives: )as sai t)at t)e Oil /inistry oes not in fa&t )ave t)e leal aut)ority to bla&#list %''on over its uristan &ontra&ts?143 As of 0ovember 2>12 %''on &ontinue to operate its est Furna sta#e in sout)ern "raq: )o=ever Ira' 0il !e1ort reporte t)at t)e major =as ta#in steps to loo# for buyers for its sta#e in t)e evelopment? 145 !ommentin on t)e impli&ations of t)e evelopments above: inustry spe&ialist ,teve eDine prei&te t)at t)e &ompanies sinin t)ese eals &oul be&ome Ian unintentional fift) &olumn in uristans move to=ars e&onomi& autonomyI?146
8R0 +#port Disputes As a result of t)e eep-roote politi&al isputes bet=een t)e uristan Reional .overnment R.7 an Ba)a: e'ports of uris) &rue sin&e 2>>< )ave been overne by a series of temporary politi&al eals? T)e R. )as on several o&&asions e&ie to s)ut in its ro=in prou&tion: as Ba)a &ontrols t)e pipeline net=or# an &laims e'&lusive ri)ts to sell "raqi &rue? 14 it) t)e R. la&#in pipelines to e'port its o=n oil: in anuary 2>11 "raqi (rime /inister 0ouri al-/ali#i an t)en-R. (rime /inister Bar)am ,ali) stru&# a eal t)at enable t)e R. to e'port &rue t)rou) pipelines &ontrolle by t)e "raqi &entral overnment in Ba)a? t)at t)e R. =oul et t)e revenues from its e'porte oil?14;T)e T)eeal ealmanate &overe 14 mont)s of e'ports an)alf +, G514 millions in payments by Ba)a? "t &alle for uristan to raise e'ports to 2>>:>>> barrels per ay bp7 t)at year: an for Ba)a to ma#e t=o immeiate payments totalin 1 trillion inars G;33 million7?14< Co=ever in April 2>12 t)e R. respone to t)e payment ispute =it) t)e &entral overnment by )altin oil s)ipments? T)e R. &laime t)at it =as o=e +, G1?5 billion in ba&#loe payments from Ba)a 14< an Tur#is) oil &ompany .enel &omplaine t)at it )a not been pai for most of t)e oil e'porte in 2>>< an 2>11: =it) ot)er operators su&) as *0O voi&in similar rievan&es? 15> "n turn Ba)a &laime &omplete auits =ere not &onu&te an a&&use t)e R. of sellin &rue an fuel prou&ts unilaterally rat)er t)an senin t)e revenues ba&# to t)e &entral overnment as aree?151 T)e urs later resume e'ports t)rou) t)e Ba)a-&ontrolle pipeline from 144 "raqi ministry bars !)evron over R. eal: U1stream 0nline, 24 uly 2>12? 145 %''on pressin to=ar est Furna sale Ira' 0il !e1ort: ; 0ovember 2>12? 146 ill oil &ompanies provie uristan its e fa&to state)ooH: /he 0Il and the lory, 1 Auust 2>12? 14 Buet battle over uristan e'ports: Ira' 0il !e1ort, 25 O&tober 2>12? 14; uristan beins inepenent &rue e'ports: Ira' 0il !e1ort, 11 uly 2>12? 14< Buet battle over uristan e'ports: Ira' 0il !e1ort 25 O&tober 2>12? 15> R. ets oil payment from Ba)a: e'ports to flo=: !euters: ; O&tober 2>12? 151 %'ports start an Tur#ey line operational: Ira' 0il !e1ort ; Auust 2>12?
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ir#u# to !ey)an in Tur#ey: an in ,eptember 2>12 t)e &entral overnment an t)e autonomous reion finally rea&)e a settlement over t)e ispute: =it) t)e R. promisin to &ontinue e'ports an Ba)a plein to pay forein &ompanies =or#in t)ere?15> On t)e 13 ,eptember 2>12 Ba)a an %rbil announ&e t)at t)ey )a &ome to a ne= areement over e'ports of uris) oil? T)e ne= e'port areement =as sine in Ba)a by Oil /inister Abul arim uaibi: R. /inister of 0atural Resour&es As)ti Ca=rami an four ot)er offi&ials?14< Co=ever by t)e en of 2>12 t)is areement itself loo#e to be in oubt: a&&orin to Ira' 0il !e1ort?152 "n t)e first t=o =ee#s of 2>13: t)e Tur#is) Hurriyet ne=spaper reporte t)at t)e R. in a symboli& move )a beun to e'port &rue oil ire&tly to =orl mar#ets: in small quantities from t)e Taq Taq fiel an via t)e Tur#is) port of /ersin? 153 T)e &entral overnment in Ba)a respone by t)reatenin to seiEe =)at it vie=s as illeal e'ports: &laimin t)at t)e ,tate Oil /ar#etin Oranisation ,O/O7 is t)e sole leally aut)oriEe entity t)at )as t)e e'&lusive ri)t to e'port an import oil an as?154
8urdish e#port infrastructure "n uly 2>12 t)e ar .roup announ&e it )a &omplete 23 per&ent of t)e first se&tion of a pipeline to &arry oil from "raqi uristan nort) a&ross t)e borer to Tur#ey: bypassin "raqi Arab reions? T)e pipeline proje&t is to transport oil from t)e Taq Taq fiel to )urmala: a route &urrently manae by tan#er: an also in&lues t)e &onstru&tion of a as pipeline from %rbil-*o)u#? ? T)e proje&t =as es&ribe by fun manaer "vor (et)er as Iquite provo&ativeI an (rime /inister Al-/ali#i )as sai t)at t)e &entral overnment is =orrie t)at t)e planne pipeline may ma#e t)e urs e&onomi&ally self-suffi&ient an embolen t)em to see# inepenen&e?155 "f t)is pipeline =as to &onne&t to Tur#ey: as some press reports )ave sueste: "raqi uristan =oul be opene up to e'ternal mar#ets? Co=ever t)e future of t)is e'port route epens very mu&) on enery &ooperation bet=een Tur#ey an nort)ern "raq into t)e future?156 /ean=)ile ,ami Alas#ary: a member of parliament an &lose avisor to t)e (rime /inister: &ommente to Ira' 0il !e1ort t)at It)e urs &ant rely on pipelines to Tur#ey to surviveI: =arnin t)at t)ey &oul ris# losin t)e 1 per&ent of t)e national buet &urrently allo&ate to t)e reion? 15
152 Ba)a tarets R. buet priorities: Ira' 0il !e1ort: 1 *e&ember 2>12? 153 R. starts inepenent &rue oil e'ports: Hurriyet %aily *e&s: ; anuary 2>13? 154 "raq t)reatens to seiEe oil s)ipments: sue ealers: Huffington Post: 11 anuary 2>13? 155 Tony Cay=ar oas Tru&#s it) uris) Oil A=aitin (ipe %nery: Bloomberg: 3> uly 2>12? 156 uristan Oil (ipeline oul Test Tur#is) (oli&ies on "raq an ,yria: Al (onitor: 24 0ovember 2>1>? 15 Ba)a tarets R. buet priorities: Ira' 0il !e1ort: 1 *e&ember 2>12?
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Iraqi 6ydrocarbon Reserves and Production A&&orin to t)e BP Statistical !evie& of "orld )nergy :;<: : "raq )ols t)e fift) larest proven petroleum reserves in t)e =orl: follo=in DeneEuela: ,aui Arabia: !anaa an "ran:15; an only a fra&tion of t)e &ountrys #no=n fiels are in evelopment?15< Aroun 5 per&ent of "raqs proven oil reserves are &on&entrate in t)e t)ree sout)ern overnorates: =it) 25 per&ent in t)e mile an t)e nort)? On t)e ba&# of a 2>12 report by t)e "nternational %nery Aen&y "%A7 t)at &laime t)at "raq =oul a&&ount for nearly )alf of t)e in&rease in lobal oil prou&tion bet=een 2>12-2> 35: t)e oranisations &)ief e&onomist es&ribe "raq as a ream for t)e enery inustry: =it) I)i) oil reserves: easy eoloy an lo= prou&tion &osts?I 16> *rillin su&&ess rates: at aroun > per&ent: are some of t)e )i)est in t)e =orl?161 /any reports an sour&es estimate oil an natural as reserves in "raq an "raqi uristan in =ays t)at &onfli&t: aree: or simply iffer? Reliable an relevant estimates are ini&ate an e'plaine in t)e se&tions t)at follo=?
Oil Proven Reserves
T)e BP Statistical !evie& s estimate for proven reserves of &rue oil rose to 143?1 billion barrels bbl7 at t)e en of 2>11: up from 34 bbl in 1<;>: brinin t)e per&entae of total lobal reserves to ;? per&ent? 15; T)e major part of t)is in&rease in t)e estimates &ame urin t)e 1<;>s? T)ere )ave been a series of sinifi&ant leaps in t)e estimate over t)is perio? "n 1<;2: early in t)e =ar =it) "ran: reserves estimates nearly ouble from 32 to 5< bbl? "n 1<;: as t)e "raqi e&onomy =as sufferin from t)e lon =ar =it) "ran: an as it appeare t)at O(%! =as about to base prou&tion quotas on state reserves: t)e fiure jumpe from 2 bbl to e'a&tly 1>> bbl? "n 1<<6: as t)e +nite 0ations =as finalisin t)e terms of t)e Oil $or $oo proram 15; ,tatisti&al Revie= of orl %nery 2>12: BP: 2>12? 15< "raq: )nergy Information Administration: ,eptember 2>1>? 16> "%A prei&ts boom in "raq oil prou&tion: 4inancial /imes: < O&tober 2>12? 161 ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12?
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=)i&) =oul allo= "raq to e'port oil aain after a total ban for several years: t)e estimate in&rease from 1>> billion to 112 bbl? "n 2>>>: only mont)s before t)e +nite inom an t)e +nite ,tates &arrie out bombin rais:162 t)e reserves estimate =as &al&ulate at 112?5 bbl? "n 2>><: t)e same year in =)i&) "raq assume &ontrol of se&urity in Ba)as .reen @one: reserve estimates rea&)e 115 bbl of oil: a fiure t)at remaine stable until *e&ember 2>11? Co=ever: as =it) ot)er O(%! prou&e rs: it is not &lear if t)e &urrent estimate of 143?1 bbl also in&lues oil t)at )as alreay been prou&e? T)e +nite ,tates .eoloi&al ,ur"orld Petroleum 0utlook of 2>>> estimate t)at of t)e 1>> bbl fiure t)at vey =as +,.,7s t)en bein use: 22 bbl )a alreay been prou&e: leavin only ; bbl yet to be re&overe from t)e proven reserves?163
0evert)eless it s)oul be note t)at B( efines Iprove reserves of oilI in its annual Statistical !evie& of "orld )nergy : quote in t)is publi&ation: as It)ose quantities t)at eoloi&al an enineerin information ini&ates =it) reasonable &ertainty can be re3 covered in the future from kno&n reservoirs under e5isting economic and o1erating conditions
Pemp)asis is report aut)ors o=nQ?I B( also states t)at t)e estimates in t)eir tables are &ompile usin Ia &ombination of primary offi&ial sour&es: t)ir- party ata from t)e O(%! ,e&retariat: Oil 8 .as ournal an an inepenent estimate of Russian reserves base on information in t)e publi& omain?I Ultimately recoverable reserves
.iven t)at a lare portion of "raq remains une'plore: t)ere )ave been numerous &laims of )ue unis&overe reserves oil t)ou)t to e'ist: an e'pe&te to be&ome e&onomi&ally re&overable7: to t)e tune of )unres of billions of barrels? A&&orin to a Broo#ins "nstitute paper from 2>>3: t)e Petroleum )conomist estimates t)at t)ere may be as many as 2>> bbl of oil in "raqN t)e $eeration of Ameri&an ,&ientists estimates 215 bblN a stuy by t)e !oun&il on $orein Relations an Ri&e +niversity &laime t)at "raq )as 22> bbl of unis&overe oil?163 "n 2>>3: Tareq ,)afiq: a founin e'e&utive of t)e "raq 0ational Oil !ompany "0O!7 in t)e 1<6>s: enorse a fiure of 215 bbl as "raqs potential reserves?164 Production
B(s Statistical !evie& of "orld )nergy s)o=s t)e profoun variations in oil prou&tion t)rou)out t)e e&ae 2>>>-2>>< an until 2>1>? Averae aily prou&tion =as 2?1 million barrelsinper ayan bp7 2>>2: to roppe to a lo= of2?; 1?3million millionbp in 2>>3: rose165ba&# to 2?> million 2>>4: #eptinrisin eventually rea&) in 2>11? T)e oriinal prou&tion tarets of t)e "raqi overnment of 12 million bp of output by 2>1 )ave sin&e been o=nrae an eeme unrealisti& by t)e inustry: an as of 162 "raq (rofile: BBC, 2> *e&ember 2>11? 163 Co= mu&) oil oes iraq )aveH: Brookings Institute: /ay 12: 2>>3? 164 "raq Oil *evelopment (oli&y Options "n ,ear&) Of Balan&e: (iddle )ast )conomic Survey: 15 *e&ember 2>>3? 165 ,tatisti&al Revie= of orl %nery 2>12: BP, 2>12?
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late 2>12 t)e overnment =as tal#in of < million bp by 2>2>?A furt)er t)reat to "raqs output oals are t)e limitations impose by prou&tion quotas set by O(%!: =)en "raq eventually rejoins t)e oranisations quota system? 166 A report release by t)e "nternational %nery Aen&y "%A7 in 2>12 lays out a &entral s&enario: )i) &ase an elaye &ase for "raqs future prou&tion profile to=ars 2>35? A&&orin to t)is &entral s&enario: "raqi oil output =oul more t)an ouble bet=een 2>11-2>2> to 6?1 mbp: rea&)in ;?3 bp by 2>35: =it) t)e larest prou&tion in&rease &omin from t)e &luster of super-iant fiels aroun Basra in t)e sout) an from uristan in t)e nort)? A&&orin to t)e proje&tions: t)ese levels of prou&tion &oul earn "raq +, G5 trillion in e'port revenues: )o=ever in orer to realise t)ese ains t)e &ountry =ill nee strent)ene institutions an )uman &apa&ity: soun lon-term strateies for t)e enery se&tor an effi&ient an transparen&y manaement of revenues an spenin?16
0as As of 2>12: "raqs proven as reserves stoo at 3?6 trillion &ubi& metres t&m7: t)e majority of =)i&) e'ist as asso&iate as at t)e &ountrys oil fiels?16; Proven reserves
B(s estimate of proven natural as reserves &)ane little from t)e en of 1<<> to t)e en of 2>1>: in&reasin from 3?1 t&m in 1<<> to 3?2 t&m in 2>1>? 16< At t)e en of 2>11 t)e estimate stoo at 3?6 t&m?165 Probable reserves
A&&orin to t)e %nery "nformation Aministration %"A7: probable "raqi reserves )ave been estimate at ;?25-< t&m: an a roup of inepenent an international oil &ompanies are =or#in on more a&&urate estimates of t)ese reserves? T)e %"A estimates t)at > per&ent of as reserves lie in Basra overnorate: an t=o-t)irs of reserves e'ist as asso&iate as in oil fiels: in&luin ir#u# in t)e nort): an sout)ern 0a)r +mar: /ajnoon: Calfaya: 0asiriya): Rumaila: est Furna an @ubair? ust uner 2> per&ent of #no=n reserves are t)ou)t to be non-asso&iate: t)e majority of =)i&) are &on&entrate in t)e 0ort): at t)e Ajil: Bai Cassan: ambur: !)em&)emal: or /or: )as)em al-A)mar: an /ansuriya) fiels?1> Production
B(s une 2>11 Statistical !evie& of "orld )nergy s)o=s a serious e&line in natural as prou&tion t)rou)out t)e e&ae 2>>>-2>>< an until 2>1>? $rom 2>>> on=ars: e' &luin as flare or re&y&le: yearly prou&tion slo=ly roppe from 3?2 billion &ubi& 166 ill "raq be t)e ne't oil superpo=erH Petroleum )conomist: 12 *e&ember 2>12? 16 "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? 16; !ountry brief "raq: )nergy Information Administration: ,eptember 2>1>? 16< B( ,tatisti&al Revie= of orl %nery une 2>11 0atural .as BP: une 2>11? 1> ,tatisti&al Revie= of orl %nery 2>12: )nergy Information Administration: ,eptember 2>1>?
36
meters b&m7 to 1?6 in 2>>3: 1 in 2>>4: risin to 1?5 in 2>>6 an 1?< in 2>>;: roppin to 1?3 in 2>1> but risin aain to 1?< b&m at t)e en of 2>11? 11
8urdish reserves and production Oil %stimates of petroleum reserves in t)e uristan reion are unoffi&ial an often vary? "n *e&ember 2>11: +nite (ress "nternational +("7 =as one of t)e meia sour&es t)at state t)at "raqi uristan )a an estimate 45 billion barrels bbl7 of oil rou)ly t)e amount t)at t)e +nite inom )as prou&e from its 0ort) ,ea fiels7? 12 Co=ever eit) /yers of Ri&)mon %nery (artners )i)li)te in a 0ovember 2>12 letter to t)e )conomist t)at t)is 45-billio n-barrel fiure first appeare in a presentation by t)e uristan Reional .overnment R.7 itself an refers not to re&overable oil but in fa&t to is&overe oil in pla&e? /yers pointe out t)at mu&) of uristans oil e'ists in ti)t reservoirs an t)at t)e amount of oil li#ely to be prou&e in uristan is &loser to 11 bbl? By t)ese estimates: uristan )ols less t)an 1> per&ent of t)e "raqs total reserves: =)ile t)e overnment is entitle to a 1 per&ent s)are of feeral petroleum revenues?13 )ile flu&tuatin prou&tion levels in 2>12 remaine moest &ompare to sout)ern "raq: at aroun 2>>:>>> barrels per ay bp7 e'pe&te to &limb to 25>:>>> bp by 2>137:14 oil &ompanies e'plorin in t)e reion )ave seen )i) su&&ess rates? 15 *epenin level ofofinternational investment an a&&ompanyin te&)ni&al e'pertise: t)e on R.t)e /inister 0atural Resour&es announ&e )is oal to rea&) 2 million bp of 16 prou&tion by 2>112 &onferen&e in %rbil t)at t)e reion )ope to rea&) t)e meium-term lanmar# of 1 million bp in 2>15?1
Gas T)ere are no offi&ial estimates for total as reserves in "raqi uristan: an t)ose estimates t)at )ave been mae vary sinifi&antly in siEe? T)e R. itself estimates t)e reions as reserves at bet=een 3 an 6 trillion &ubi& metres t&m7 1; an ne=s portal
11 ,tatisti&al Revie= of orl %nery 2>12: BP: 2>12? 12 As "raq smolers: urs sit on oil ri&)es: UPI : 22 *e&ember 2>11? 13 etters: )conomist 24 0ovember 2>12? 14 "raqi urs &ount on Tur#ey as enery )ub ami fri&tion: Hurriyet %aily *e&s: 2> ,eptember 2>12? 15 "raqi .overnment an uristan at Os Over Oil (rou&tion: *e& .ork /imes: 14 0ovember 2>12? 16 As uristan oil booms: eal-ma#in a&&elerates: Ira' 0il !e1ort: 3 *e&ember 2>12? 1 TO( Oil /ar#et 0e=s !rue 0ear T=o-ee# Ci)N Bulls Boost Bets: Bloomberg: 3 *e&ember 2>12? 1; A ne= era in se&urity an evelopment: +urdistan !egional overnment9, retrieve 3 *e&ember 2>12?
3
+(" reporte in 0ovember 2>12 a fiure for as reserves of 3?36 t&m? 1< Co=ever an estimate by t)e US eological Survey puts total Iyet-to-finI as at 6> trillion &ubi& metres t&m7 of as?1;> Co=ever t)e uristan reions ability to monetise t)ese reserves =ill epen on e'port infrastru&ture? A role )as also been sueste for t)e reion in supplyin as for t)e ,out)ern !orrior route via t)e 0abu&&o pipeline or one of t)e ot)er &ompetin proposals7: a proje&t aime at iversifyin as supply routes to estern %urope? An Oil /inistry spo#esman )as sai t)at initial as supply for t)is route &oul be e'pe&te bet=een 2>15-2>1 but proress epens on a resolution bet=een t)e &entral overnment an t)e R. over as e'ports?1;1
Dependence on +#tractives Revenues (oliti&al s&ientist /i&)ael Ross es&ribes oil epenen&e as It)e ratio of oil: as an &oal e'ports to .*(I? By t)is efinition: t)e most )i)ly oil epenent state in 1<<5 =as Anola 6;?5 per&ent7: follo=e by u=ait 4-1<<> foun a &orrelation &ountries in )i)epenen&y levels of fuel an mineral epenen&y an neativebet=een per &apita annuale')ibitro=t) 1;3 rates over t)at perio? Co=ever t)ere are t=o ifferent measures of oil revenue epenen&e: t)e first bein t)e ratio of oil revenues to fis&al revenues: or t)e total in&ome of t)e overnment an t)e se&on is t)e ratio of oil revenues to total e'ports? T)e "/$ estimate in 2>>3 t)at: of t)e .ulf prou&ers: t)e +nite Arab %mirates s)o=s t)e least oil epenen &e: =it) oil a&&ountin for just over )alf of overnment in&ome: an just uner )alf of e'ports?1;4 Fatar: by &ontrast: s)o=e a ratio of > per&ent of overnment revenues: an ;> per&ent of total e'ports? T)e "nternational /onetary $un ientifie at least 3> &ountries =)ere revenues from oil an as a&&ounte for at least 25 per&ent of overnment in&ome urin t)e perio 2>>5-; an =)ere suffi&ient information =as available for meaninful analysis ibya: Aleria: Anola: AEerbaijan: Ba)rain: Bolivia: Brunei: !ameroon: !)a: !ono: %&uaor: %quatorial .uinea: .abon: "nonesia: "ran: aEa#)stan: u=ait: /e'i&o: 0i1< "raqi urs efy Ba)a: e'port o=n oil: UPI, 1 0ovember 2>12? 1;> Cay=ar stri#es G2bn uristan eal: 4inancial /imes: ,eptember 2>11? 1;1 "raq ants to (lay Role in 0abu&&o (ipeline: *atural as )uro1e : 1 O&tober 2>12? 1;2 0atural Resour&es an Diolent !onfli&t: "orld Bank: 2>>3? 1;3 /eetin t)e !)allene Of t)e Resour&e !urseM: U*%P: 2>>6? 1;4 .!! !ountries $rom Oil *epenen&e to *iversifi&ation: International (onetary 4und: 2>>3?
3;
eria: 0or=ay: Oman: Fatar: Russia: ,aui Arabia: ,uan: Timor-este: Trinia an Tobao: +A%: DeneEuela: Dietnam: an 9emen?1;5 "t is important to note t)at oil revenue epenen&e is not relate to t)e quantity of oil prou&e or e'porte? 9emen: =)i&) e'porte aroun 44;:>>> barrels of oil a ay bp7 in 2>>3: isplaye a )i)er erees of epenen&e on oil revenues t)an ,aui Arabia: =)i&) e'porte aroun 1>?2 million bp over t)e same perio: or over t=enty times more?1;6
Dependen ce on e#tractives revenues in Iraq A&&orin to t)e "nternational %nery Aen&y "%A7: t)e )eavy epenen&e of "raqs e&onomi& evelopment on t)e su&&ess of its oil se&tor ma#es t)e e&onomy )i)ly vulnerable to &)anin &onitions in t)e lobal oil mar#et: a&&ountin for s)arp s=ins in e'port revenues? T)eir report notes t)at: as oil revenue volatility is typi&ally transmitte to t)e non-oil e&onomy t)rou) fis&al poli&y: soun manaement of national finan&es is essential to mitiatin t)is ris#? "raq in parti&ular: =it) a lare an ro=in population: must evelop a self-sustainin an prou&tive e&onomy beyon t)e oil se&tor: a tas# t)at t)e "%A per&eives as &ompli&ate by t)e s&ale of t)e &ountrys oil revenues?1; Revenue at&) "nstitute reports t)at in "n 2>1> "raq a&&umulate over G51?4 billion in oil revenues: =it) oil a&&ountin for over 5 per&ent of .*( an almost <> per&ent of overnment revenues?1;;
9he 4+ner5y *i#4 -hat is the 4ener5y mi#4: T)e enery mi' refers to t)e istribution of &onsumption per enery sour&e? %a&) &ountry uses enery ifferently: efinin its o=n enery mi'? 1;< A&&orin to t)e BP Statistical !evie& : in 2>1> oil &onsumption a&&ounte for 34 per&ent of t)e =orls primary eneryN &oal a&&ounte for 3> per&ent of t)e mi'N as &ontribute 24 per&entN )yro-po=er &ontribute 6?5 per&ent an non-)yro rene=ables in&luin biofuels7 &ontribute 1?; per&ent?1<> B(s )nergy 0utlook :;=; report )i)li)ts t)ree #ey trens s)apin t)e moern enery e&onomy inustrialisation: urbanisation an motorisation? T)ese trens are le by 1;5 $is&al (oli&y in Oil (rou&in !ountries *urin t)e Re&ent Oil (ri&e !y&le: International (onetary 4und: $ebruary 2>1>? 1;6 B( ,tatisti&al Revie= of orl %nery une 2>11: BP: une 2>11? 1; "raq %nery Outloo#: I)A: < O&tober 2>12?? 1;; "raq %'tra&tive "nustries: !evenue "atch: retrieve 2; 0ovember 2>12?? 1;< T)e %nery /i': Planete )nergies: retrieve 1 $ebruary 2>12? 1<> T)e =orl ets ba&# to burnin: )conomist: ; une 2>11?
3<
in&rease enery &onsumption? in&rease effi&ien&y of enery use in prou&tion an &onsumption? in&reasin iversifi&ation of sour&es of enery? in&rease eman for &lean an &onvenient enery at t)e point of use? 1<1
6istorical trends One sour&e of po=er )as al=ays ominate t)e enery "n t)e pre-inustrial ae =oo ominate: urin t)e inustrial revolution &oalmi'? ominate an oil )as ominate t)e 2>t) &entury? By 2>3> B( prei&ts t)at natural as =ill ain in importan&e: )o=ever enery effi&ien&y =ill mean t)at e&onomi& ro=t) =ill be far less enery intensive a&ross t)e lobe?1<2 T)e first reat =ave of inustrialisation =as po=ere by &oal: a fuel =)i&) remaine ominant until after t)e ,e&on orl ar? T)e ne't major transition &ame =it) ele&tri&ity an t)e internal &ombustion enine: =)i&) allo=e iversifi&ation a=ay from &oal? !oal raually &ame to be repla&e as t)e prin&ipal fuel in po=er eneration by natural as an rene=able enery sour&es?1<1 Co=ever bet=een 2>>>-2>11 &oals s)are of t)e enery mi' in&rease by 4 per&ent on t)e ba&# of stron ro=t) in !)ina: most of =)oms ro=t) in t)e 21st &entury )as &ome from burnin &oal? !oal &onsumption in 2>11 =as up by ?6 per&ent an =as 1<3
ro=in faster t)an at any time sin&e 2>>3?
Future pro;ections T)e "%A prei&ts t)at t)e s)are of natural as in t)e lobal enery mi' =ill in&rease from 21 per&ent in 2>11 to 25 per&ent by 2>35 an t)e s)are of &oal =ill e&line? Co= ever a&&orin to t)eir report: an in&rease s)are of natural as in t)e enery mi' is far from enou) to avoi an averae lobal temperature rise of less t)an 2S!: as alt)ou) as is estimate to repla&e some &oal an oil in t)e mi' it =ill also ispla&e some nu&lear po=er: t)ereby in&reasin reen)ouse as emissions? 1<4 A&&orin to B(s estimates: t)e fuel mi' =ill &)ane relatively slo=ly ue to lon as set lifetimes? Co=ever t)e fastest ro=in fuels =ill be rene=ables: =)i&) are e'pe& te to ro= at ;?2 per&ent per year bet=een 2>1>-2>3>? Amon fossil fuels: as is e'pe&te to ro=a at t)ee&line fastestin rate 2?1 per&ent pert)at year7? T)eirains outloo# prei&ts t)at oil =ill &ontinue lon mar#et s)are an re&ent by &oal in mar#et s)are: ue to rapi inustrialisation in !)ina an "nia: =ill be reverse by 2>3>?1<5
1<1 B( %nery Outloo# 2>3>: BP: anuary 2>11? 1<2 atts ne't: )conomist: 25 anuary 2>12? 1<3 T)e =orl ets ba&# to burnin: )conomist: ; une 2>11? 1<4 Are =e enterin t)e olen ae of asH: International )nergy Agency: 2>11? 1<5 B( %nery Outloo# 2>3>: BP: anuary 2>11?
4>
Unconventional energy sources T)e Petroleum )conomist prei&ts t)at un&onventional resour&es su&) as s)ale as an &oal be met)ane =ill play a &riti&al role in meetin lobal enery eman in t)e future: t)e Iame &)anerI bein t)e rise of un&onventional as in t)e +,? Co=ever nearly 5 per&ent of t)e =orls total un&onventional resour&es lie outsie 0ort) Ameri&a?1<6 A&&orin to t)e "%As 2>11 report Are =e enterin a olen ae of asH: un&onventional as resour&es are no= estimate to be as lare as &onventional resour&es: an un&onventional as no= ma#es up aroun 6> per&ent of mar#ete prou&tion in t)e +,?1< (/.: in t)eir report ,)ale .as - A .lobal (erspe&tive arue t)at t)is resour&e )as t)e potential to turn t)e =orls enery inustry on its )ea an to ispla&e fossil fuels in t)e enery mi' of sele&te lo&ations: in&luin !)ina: Ameri&a: Arentina: /e'i&o an ,out) Afri&a: 1<; potentially slo=in t)e evelopment of rene=able resour&es? Co=ever t)e inustry must first fa&e &onsierable reputational an reulatory obsta&les?1<<
Renewable energy sources Rene=able enery in&lues su&) sour&es as =in: p)otovoltai& an t)ermal solar: tial an =ave po=er: amon ot)ers? T)e rene=able enery inustry is still in its infan&y in terms of its &ontribution to t)e lobal mi': but =)ile t)e lobal &ontribution is still minor: it s)o=s a )i) ro=t) rate? in po=er: for e'ample: s)o=e ro=t) rates above 3> per&ent bet=een 1<<-2>>? 2>> Co=ever: eman for fossil-base enery: su&) as &oal an oil: )as outpa&e eman for &lean enery?2>1
9he 4+ner5y *i#4 in Iraq "raq sa= its omesti& eman for oil rise to over >>:>>> barrels per ay bp7 in 2>11: up from only 45>:>>> bp in 2>>3? 0ele&t of refinin infrastru&ture means t)at most plants are only able to run at aroun 5> per&ent &apa&ity: for&in "raq to import refine prou&ts from nei)bourin &ountries? T)e +, *epartment of %nery estimates t)at in 2>11 "raq relie on imports for a t)ir of its petroleum &onsumption an a fift) of its liquefie petroleum as (.7? 2>2 A&&orin t)e "nternational %nery Aen&y 2>12: natural as &an a mu&) moretoimportant role in "raqs future t)an "%A7 it )asinpreviously: reu&in t)eplay ominan&e of oil in t)e omesti& enery mi'? "n orer to a&)ieve t)is: t)e &ountrys asso&i1<6 +n&onventional ass lobal potential: Petroleum )conomist: 1; uly 2>11? 1< Are =e enterin t)e olen ae of asH : International )nergy Agency: 2>11? 1<; T)e orl in $iures %nery: )conomist: 1 0ovember 2>11? 1<< ,)ale .as - A .lobal (erspe&tive: +P( Institutes: *e&ember 2>11? 2>> orl %nery an (opulation Trens to 21>>: A11roaching the Limits to ro&th: O&tober 2>>1? 2>1 !lean %nery (roress Report: International )nergy Agency: une 2>11? 2>2 Refinin *omesti& pro&essin &apa&ity is risin qui&#ly: 4inancial /imes: *e&ember 2>11?
41
ate as must be &apture an pro&esse: rat)er t)an flare? But a&&orin to t)eir proje&ts asso&iate as alone =ill not satisfy "raqs proje& te eman: estimate at > billion &ubi& metres b&m7 by 2>35? T)erefore "raqs as balan&e an t)e availability of surplus as for e'port =ill epen on &reatin in&entives to evelop t)e &ountrys non-asso&iate as reserves?2>3 "n t)e meantime t)e ro=in eman means t)at t)e &ountry must rely on po=er imports in t)e s)ort term? 2>4 Co=ever =)ile "raq is see#in to e'port t)e natural as it prou&es: 2>5 be&ause of risin an unsatisfie eman t)e &ountry suffers from &)roni& po=er &uts t)at le to t)e /inister of %le&tri&ity stanin o=n in 2>1>? 2>6 "n 2>12: for e'ample: t)e averae "raqi )ouse)ol re&eive po=er for only ?6 )ours per ay a &al&ulation =)i&) ta#es into a&&ount )omes in t)e semi-autonomous reion of "raqi uristan: =)ere &itiEens )ave a&&ess to ele&tri&ity aroun t)e &lo? /any )ouse)ols rely on )ouse)ol or nei)bour)oo enerators for po=er?2>
2>3 "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? 2>4 (o=er eneration a top priority in "raq: (iddle )ast Business Intelligence: 2>12? 2>5 "raq eyes %+ as e'ports t)rou) Tur#ey: Petroleum )conomist: ; ,eptember 2>11? 2>6 "raq ele&tri&ity minister resins over po=er &uts: !euters: 21 une 2>1>? 2> (o=er eneration a top priority in "raq: (iddle )ast Business Intelligence: 2>12?
42
Resource Curse T)e resour&e &urse sometimes terme t)e parao' of plenty7 refers to t)e t)eory t)at natural resour&e =ealt) an a )i) eree of epenen&y on natural resour&es &an sometimes parao'i&ally &reate neative evelopment out&omes in prou&in &ountries? T)is is ue to =ea#ene overnmental institutions: nele&t of ot)er #ey se&tors of t)e e&onomy: &orruption: )i) in&ome inequality an ot)er fa&tors? 2>;
+vidence and research T)e iea t)at natural resour&es &an result in poor evelopment out&omes )as been in play sin&e t)e 1<5>s: =)en it =as )otly &onteste by t)e ieoloi&al &s of t)e eft an Ri)t? %mpiri&al ata bean to a&&umulate to support t)e iea over time? "n t)e 1<>s .obin 0an#ani: a vi&e-presient at t)e orl Ban#: s)o=e t)at a roup of mineral e'portin &ountri es re= on averae by 1?5 per&ent per year over t)e perio 1<6> to 1<6: about )alf t)e ro=t) in a &ontrol roup of non resour&e-ri&) &ountries?2>< "n 1<;; a stuy &ommissione by t)e orl Ban# e'amine t)e =infalls a&21> &ruin to si' oil-ri&) &ountries urin t)e boom of t)e 1<>s an &on&lue t)at t)ose states )a performe less =ell t)an ot)er: resour&e-poor &ountries?
At t)e en of t)e 1<<>s effrey ,a&)s an Anre= arners publi&ation 0atural Resour&e Abunan&e an %&onomi& .ro=t) e'amine < &ountries over a perio of 1; years 1<1 - 1<;<7 an foun t)at states =it) a )i) abunan&e of natural resour&e e'ports )a abnormally slo= e&onomi& ro=t) in eneral: relative to ot)er &ountries? T)e stuy be&ame t)e basis of a ro=in re&onition of t)e nee to aress t)e prob lems t)at natural resour&e abunan&e &an &reate in evelopin so&ieties? 211
Opponents of the term ,ome e&onomists )ave resiste t)e term resour&e &urse be&ause t)ey &laim it souns fatalisti&?212 O'for professor (aul !ollier suests t)at t)e term poses t)e problem t)e =ron =ay roun: sin&e )e estimates t)ere are more natural resour&es in evelope &ountries t)an in evelopin ones? T)e ominan&e of natural resour&e inustries in some evelopin &ountries e&onomies is simply: )e states: ue to t)e fa&t t)at t)ey 2>; %'plorin Oil *ata: 01en0il: 2>12? 2>< 0an#ani: .obin *evelopmental (roblems of /ineral %'portin !ountries "orld Bank: 1< Oil infalls: Blessin or !urseH Alan elb and Associates: 1<;;? 211 ,a&)s: effrey an arner: Anre= 0atural Resour&e Abunan&e an %&onomi& .ro=t): Center for International %evelo1ment and Harvard Institute for International %evelo1ment: 0ovember 1<<? 212 Resour&e !urse: or Resour&e TrapH: /hinking 0ut Aloud: 23 $ebruary 2>1>?
43
)ave )a fe= ot)er options for e&onomi& evelopment: =)i&) in turn is ue to a =)ole )ost of politi&al an so&ial fa&tors? !ollier arues t)at for t)e =orls bottom billion t)e poorest billion people on t)e planet - a reater problem is rat)er t)at t)eir natural resour&es )ave not been is&overe or evelope enou)? 213 Ot)ers )ave resiste t)e &on&lusion t)at t)e p)enomenon is inevitable: aruin t)at any resour&e &urse must be &ontinent? (aul !ollier &ites t)e &ase of Bots=ana: for e'ample: =)i&) )as e'perien&e rapi ro=t) sin&e t)e is&overy of iamons?214
Attitudes of ma;or institutions International institutions
T)e "nternational /onetary $un "/$7 )as publis)e papers is&ussin )o= to aress t)e resour&e &urse in 0ieria 215 an Bots=ana?216 $or its part: t)e orl Ban# uses t)e term resour&e &urse 2121; =)ile aruin t)at it is not inevitable an &an be avoie by oo overnan&e?
Oil companies T)e attitue of private oil &ompanies to=ars a&&eptan&e of t)e term varies: )o=ever in a 2>>4 spee&) 0i&# Butler: B(s vi&e-presient for ,tratey an (oli&y *evelopment: mae t)e follo=in &omment in a&#no=lement of t)e p)enomenon IT)e reality of t)e problems =)i&) )aveisaffli&te a number of ifferentt)at &ountries as at)ins result=e of &an natural resour&e evelopment uneniable? " am &onvin&e t)ere are o to mitiate many of t)e problem s but it =oul be quite =ron to start from a position of enial?I216 On t)e ot)er )an: in an avertisement from 2>>6: +, major %''on/obil reje&te use of t)e term resour&e &urse: but i say it supporte t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7 pro&ess be&ause it a&#no=lees t)at oo overnan&e is ne&essary to eliver benefits from oil prou&tion: an t)at transparen&y is a part of t)at? T)e avertisement mae t)e point t)at Iisparai n t)e resour&e itself is not t)e an s=er?21<
213 !ollier: (aul T)e (lunere (lanet )y e /ust--an Co= e !an--/anae 0ature for .lobal (rosperity: 05ford University Press: 2>11? 214 a=s an !oes for t)e Resour&e !urseM 05ford University: ,eptember 2>>? 215 Aressin t)e 0atural Resour&e !urse An "llustration from 0ieria: I(4: uly 2>>3? 216 %s&apin from t)e Resour&e !urse %vien&e from Bots=ana an t)e Rest of t)e orl: I(4: 2>>? 21 (roperty Ri)ts an t)e Resour&e !urse: "orld Bank: 5 April 2>>? 21; !ontributin to evelopmentMH F8A =it) orl Ban# .roup ire&tor: Critical !esource: anuary 2>1>? 21< .arsten: !)ristina an in) e /ontoya: /oni&a Transparen&y in a 0e= .lobal Orer: )d&ard )lgar Publishing: 2>>;?
44
+conomic symptoms Dutch Disease ,o-&alle *ut&) isease is t)e effe&t on a &ountrys e&onomy =)en it earns a lot of revenues from e'portin a natural resour&e? "t =as name after t)e perio in t)e 0et)erlans =)en a e&line in t)e manufa&turin se&tor =as =itnesse urin t)e 1<6>s follo=in t)e is&overy of a major natural as fiel? T)e t)eory oes t)at oil e'ports result in lare inflo=s of forein &urren&y: =)i&) in turn tens to lea to t)e appre&iation of t)e lo&al &urren&y an ma#es e'ports from ot)er se&tors un&ompetitive? ,imultaneously t)e earnin po=er of t)e oil se&tor ra=s in labour an &apital from ot)er se&tors of t)e e&onomy: aversely affe&tin t)em: =)et)er t)ey are e'port-oriente or not?22>
Oil and debt %&onomists )ave lon note t)e lin# bet=een oil revenues an )i)er fis&al spenin? Overspenin urin a &ommoity boom: t)an#s to a&&ess to &)eap &reit in international &apital mar#ets: &an lea to t)e a&&umulation of )i) levels of ebt: leain to )i) interest rate spreas urin perios of lo=er natural resour&e pri&es? ,ome )ave attribute t)e resour&e &urse in oil-ri&) &ountries to t)e ebt over)an =)i&) o&&urre in t)e 1<>s =)en t)ese &ountries use &ommoities as &ollateral to ta#e on e'&essive ebt =)en oil pri&es =ere )i)? A &ollapse in oil pri&es in t)e 1<;>s left t)ese &ountries =it) no ability to servi&e t)eir ebts?221 A 2>>5 stuy by t)e "nstitute for (ubli& (oli&y Reform analyse ata from 1>1 &ountries for t)e perio 1<<1-2>>2 an &on&lue t)ere =as a statisti&al &orrelation bet=een in&rease oil prou&tion an e'ports: an publi& ebt in t)e prou&in &ountry?222 T)e &ase of DeneEuela urin t)e 1<>s oil boom isplays t)e symptoms etaile above: =)ere (resient !arlos Anres (ereE in&rease publi& spenin ramati&ally: leain to )i) levels of ebt an ensuin manaement problems t)rou) &ommoity pri&e &y&les?223
Political symptoms Weakening of institutions /any politi&al s&ientists )ave outline a resour&e &urse =)i&) bot) ma#es rulers in a state less a&&ountable: an state institutions =ea#er? T)ey are less a&&ountable be&ause t)e presen&e of resour&e revenues means a state is not uner t)e same pressure to raise ta'es in orer to provie =elfare an publi& servi&es to a reater or lesser e'tent epenin on t)e eree of t)eir resour&e =ealt)7? ,tate institutions be&ome 22> /ineral-Ri&) !ountries an *ut&) *isease: "orld Bank, :;;>221 !outin)o: eonor T)e Resour&e !urse an $is&al (oli&y: Cy1rus )conomic Policy !evie& : 2>11? 222 *rillin into *ebt Institute of Public Policy !esearch : 2>>5? 223 Causmann: Ri&aro an RoriueE: $ran&is&o DeneEuela Anatomy of a &ollapse: 2>>6?
45
=ea#er be&ause t)ey o not evelop t)e same eree of is&ipline: t)rou) merito&ra&y an aainst measure oals an results? T)e most notable e'ponent of t)is t)eory )as been (rofessor Terry ynn arl: =)o stuie t)e &ases of DeneEuela: 0ieria: Aleria an "ran for )er analysis?224
onflict Analysts of t)e resour&e &urse point to many &ases =)ere natural resour&e =ealt) &reates or e'a&erbates &onfli&ts: eit)er bet=een states or =it)in t)em? 0otabl e &ases in&lue ,out) ,uan: =)ere t)e presen&e of oil rene=e tensions bet=een t)e )artoum overnment in ,uan an t)e ne=ly forme &ountry? T)e oil-ri&) !abina reion of Anola: =)ere a se&essionist movement )as flouris)e sin&e t)e is&overy of oil? 0ieria: =)ere t)e &on&entration of oil in t)e 0ier *elta =as a &ontributin fa&tor to t)e 0ierian !ivil ar of 1<66->: an ever sin&e )as been a &ause of sinifi&ant unrest?225
Avoidin5 the resource curse /e&)anisms an poli&ies =)i&) )ave been propose to avoi t)e resour&e &urse in&lue simply leavin t)e oil inan t)eso&iety rountime oneto of ajust t)e more e'treme propose solu-options t)at allo=s an e&onomy before inflo=s arrive: but pose by t)e private se&tor7N e&onomi& iversifi&ation to evelop ot)er sour&es of value an reu&e epenen&y on mineral e'ports7N revenue sterilisation to neutralise t)e impa&t of =infall revenues by resistin spenin pressures7N an stabilisation funs set up to invest revenues outsie t)e omesti& e&onomy an uar aainst flu&tuatin &ommoity pri&es7?226
Definition of 6ydrocarbon Reserves *ifferent systems )ave been use to &lassify reserves of oil an as sin&e t)e inustry first evelope in t)e nineteent) &entury? But t)e most =iely use efinitions toay are provie by t)e (etroleum Resour&es /anaement ,ystem of t)e Ameri&an ,o&iety of (etroleum %nineers ,(%7?22 Reserve estimates are a major river of value for e'ploration an prou&tion &ompan224 arl: Terry ynn: T)e (arao' of (lenty Oil Booms an (etro ,tates: University of California Press: 1<<? 225 T)e 0atural Resour&e !urse A ,urvey: Harvard +ennedy School: $ebruary 2>1>? 226 Resour&e "mpa&t - !urse or BlessinH: University of %undee: 25 /ar&) 2>>3? 22 (etroleum Reserves 8 Resour&es *efinitions: Society of Petroleum )ngineers: retrieve 1; anuary 2>12?
46
ies? All reserves are estimates of unerroun reservoirs =)i&) &annot be p)ysi&ally inspe&te an al=ays involve some eree of un&ertainty? Co=ever su&) systems are important in &reatin a universal lanuae of &lear terms an efinitions t)at result in reliable an easily &omparable reserve estimations for investors: reulators: overnments an &onsumers? 22; "t s)oul be note t)at aroun t)e =orl: overnment aen&ies an oraniEations use sli)tly ifferent efinitions?22 A&&orin to t)e vi&e-presient of petroleum &onsultan&y Ryer ,&ott: t)ere )as been a tren to=ars &ommissionin e'ternal auits of estimate reserves? it) in&rease attention iven to &orporate responsibility in finan&ial reportin: )e asserts t)at oil an as &ompanies are no= enain t)ir-party enineers to evaluate or auit petroleum reserves?22<
Cate5ories of reserves A&&orin to t)e ,(% .uielines: reserves are a subset of resour&es: representin t)e part of resour&es =)i&) are &ommer&ially re&overable an )ave been justifie for evelopment? Reserves &an be subsequently ivie into t)e follo=in t)ree &ateorie s epenin on &ertainty of re&overy?22;
!roved reserves T)e )i)est value &ateory of reserves is prove reserves? (rove reserves )ave a reasonable &ertainty of bein re&overe: =)i&) means a )i) eree of &onfien&e t)at 22; t)e volumes =ill be re&overe? To be separate &lear: reserves all &ommer&ial aresse? "t is te&)ni&al issues =)i&) provemust from )ave unprove &ateories?aspe&ts
T)e term 1( is frequently use to enote prove reserves ? 22; B( publis)es an annual ,tatisti&al Revie= =)i&) etails prove reserves for over 5> prou&in &ountries? 23>
!robable and possible reserves (robable or possible reserves are lo=er &ateories of reserves: &ommonly &ombine an referre to as unprove reserves: =it) e&reasin levels of te&)ni&al &ertainty? (robable reserves are volumes t)at are efine as less li#ely to be re&overe t)an prove: but more &ertain to be re&overe t)an (ossible Reserves? (ossible reserves are reserves =)i&) analysis of eoloi&al an enineerin ata suests are less li#ely to be re&overable t)an probable reserves?231
T)e term 2( is use to enote t)e sum of prove an probable reserves an 3( t)e sum of prove: probable an possible reserves? T)e best estimate of re&overy from &ommitte proje&ts is enerally &onsiere to be t)e 2( sum of prove an probable re22; ,(% (etroleum Resour&es /anaement ,ystem .uie for 0on-Te&)ni&al +sers: Society of Petroleum )ngineers: retrieve 1; anuary 2>12? 22< T)e Reserves Auit !yder Scott: retrieve 1; anuary 2>12? 23> B( ,tatisti&al Revie= 2>><: BP: 2>>12?
4
serves?231
Resources Resour&es enotes less &ertainty t)an reserves be&ause some sinifi&ant &ommer&ial or te&)ni&al )urle must be over&ome prior to t)ere bein &onfien&e in t)e eventual prou&tion of t)e volumes?231
ontingent resources T)ese are resour&es t)at are potentially re&overable but not yet &onsiere mature enou) for &ommer&ial evelopment ue to te&)noloi&al or business )urles? $or &ontinent resour&es to move into t)e reserves &ateory: t)e #ey &onitions: or &ontinen&ies: t)at prevente &ommer&ial evelopment must be &larifie an remove? As an e'ample: all require internal an e'ternal approvals s)oul be in pla&e or etermine to be fort)&omin: in&luin environmental an overnmental approvals? T)ere also must be evien&e of firm intention by a &ompanyMs manaement to pro&ee =it) evelopment =it)in a reasonable time frame typi&ally 5 years: t)ou) it &oul be loner7? 231
!rospective resources (rospe&tive resour&es are estimate volumes asso&iate =it) unis&overe a&&umulations? T)ese represent quantities of petroleum =)i&) are estimate: as of a iven ate: to be potentially re&overable from oil an as eposits ientifie on t)e basis of inire&t evien&e but =)i&) )ave rille? T)is &lass represents a )i)erresour&es ris# t)an to &ontinent resour&es sin&enot t)eyet ris#been of is&overy is also ae? $or prospe&tive be&ome &lassifie as &ontinent resour&es: )yro&arbons must be is&overe: t)e a&&umulations must be furt)er evaluate an an estimate of quantities t)at =oul be re&overable uner appropriate evelopment proje&ts prepare?231
Oil Field Depletion Oil fiel epletion refers to t)e e&line in an oil fiels prou&tion over time: 232 =)en a fiels re&overable resour&es be&ome e')auste an prou&tion is reu&e ue to t)e p)ysi&al limitations of t)e reservoir?233 *epletion is a natural pro&ess by =)i&) an oil fiel prou&es an in&reasin volume of oil until output eventually )its a pea#: after 234
=)i&) t)e volume t)at &an be pumpe out of t)at fiel raually e&lines? T)e analysis of epletion rates is a #ey element in fore&astin t)e future prou&tion of oil reservoirs?233 A metri& often use to etermine t)e remainin lifespan of an oil reserve is t)e reserves-to-prou&tion ratio: use to fore&ast t)e future availability of a 232 T)e life of an oil reservoir: /he 0il %rum: 14 Auust 2>>6? 233 *epletion an *e&line !urve Analysis in !rue Oil (rou&tion: lobal )nergy System: /ay 2>>12?
4;
resour&e?235
+nhanced Oil Recovery +OR! T)e life of an oil =ell oes t)rou) at least t)ree istin&t p)ases: =it) various te&)niques employe to #eep oil prou&tion at ma'imum levels? %n)an&e oil re&overy %OR7 is t)e t)ir an most avan&e stae in t)is pro&ess? %OR &an substantially improve t)e effi&ien&y of e'tra&tion?236 %OR &an refer to any met)o of in&reasin oil prou&tion from a reservoir: usin sop)isti&ate te&)noloi&al te&)niques to a enery to a reservoir to stimulate oil prou&tion an in&rease re&ov ery fa&tor: or t)e amount of t)e reservoirs total oil t)at is e' tra&te?23 %OR also )as some &onsierable ra=ba&#s: in&luin t)e relatively )i) &ost of its implementation an: in some &ases: t)e unprei&tability of its effe&tiveness?23; A&&orin to t)e (etroleum Te&)noloy Transfer !oun&il: about 1> per&ent of all oil prou&e in t)e +nite ,tates in 2>>< use en)an&e re&overy te&)niques?23<
9hree sta5es of oil field development "n t)e first stae of an oil fiels evelopment: oil is for&e out by pressure enerate 24>
from as present in t)e oilrives also oil #no=n as7? T)e pressure of t)e reservoir: or ravity: into as t)easso&iate =ellbore: &ombine =it)natural artifi&ial lift te&)niques su&) as pumps =)i&) brin t)e oil to t)e surfa&e? Only about 1> per&ent of a reservoirs oriinal oil in pla&e is typi&ally prou&e urin primary re&overy? 241 "n t)e se&onary stae: t)e reservoir is flooe =it) =ater or inje&te =it) as to maintain suffi&ient pressure levels to ispla&e oil an rive it to t)e prou&tion =ellbore?24> T)is stae e'tens a fiels prou&tive life an results in t)e re&overy of 2> to 4> per&ent of t)e oriinal oil in pla&e?241 %OR refers to t)e tertiary stae of evelopment: =)i&) involves t)e introu&tion of fluis t)at t)e reu&e t)e vis&osity: or t)i&#ness: of t)e oil an improve its flo=? Tertiary re&overy enables prou&ers to e'tra&t up to or over )alf of a reservoirs oriinal oil &ontent: epenin on t)e reservoir an t)e te&)nique use? 24>
235 Reserves to (rou&tion Ratio: Investo1edia: retrieve ; anuary 2>12? 236 %n)an&e Oil Re&overy %OR7: /eledyne ISC0: Retrieve 1 $ebruary 2>12? 23 Oil $iel .lossary Schlumberger: retrieve 1 $ebruary 2>12? 23; %n)an&e Oil Re&overy!O2 "nje&tion: 4ossil )nergy: Retrieve 1 $ebruary 2>12? 23< %n)an&e Oil Re&overy: Petroleum /echnology /ransfer Council : retrieve 1 $ebruary 2>12? 24> %n)an&e Oil Re&overy %OR7: /eledyne ISC0: retrieve 1 $ebruary 2>12? 241 %n)an&e Oil Re&overy!O2 "nje&tion: 4ossil )nergy: retrieve 1 $ebruary 2>12?
4<
Cate5ories of +OR techniques T)e primary &ateories of %OR are t)ermal re&overy: as inje&tion an &)emi&al inje&tion?241 T)ermal %OR )as )istori&ally been t)e mos t =iely app lie? 24> T)is met)o involves t)e introu&tion of )eat: most &ommonly in t)e form of steam: into a reservoir to reu&e t)e vis&osity of t)e oil to be e'tra&te? 241 .as inje&tion uses ases su&) as nitroen or &arbon io'ie t)at e'pan in a reservoir to pus) aitional oil to t)e prou&tion =ellbore? Ot)er ases &an also be use to issolve in t)e oil to lo=er its vis&osity an in&rease its flo= rate? 241 Ot)er ases: su&) as )yro&arbon ases an flue ases t)e &ombustion e')aust as of a po=er plant: for e'ample7: &an also be use in t)is met)o of %OR?24> !)emi&al %OR enerally involves t)e flooin of a reservoir =it) =ater- soluble polymers: or lon-&)aine mole&ules: to )elp reu&e t)e surfa&e tension t)at often prevents oil from movin t)rou) a reservoir? 241 T)is effe&ts a more effi&ient ispla&ement: an t)erefore better re&overy: of moerately vis&ous oils? 24> A number of ot)er %OR pro&esses )ave also evolve: in&luin t)e inje&tion of &arbonate =ater: mi&rooranisms: foams: al#aline: an ot)er substan&es? T)ese )ave s)o=n varyin erees of promise but require aitional evelopment to enter into more &ommon use?24> A&&orin to t)e +, *epartment of %nery in *e&ember 2>11: t)ermal te&)niques a&&ounte for over 4> per&ent of %OR prou&tion in t)e +nite ,tates: as inje&tion a&&ounte for nearly 6> per&ent: an &)emi&al te&)niques a&&ounte for about one per&ent?242
Crude Oil S petroleum measure is e'presse erees an relative most values fallofbet=een an >S?liquis? T)e T)e spe&ifi& ravity of oil is itsinrelative 244 ensity to =ater at 6>S $aren)eit?
242 %n)an&e Oil Re&overy!O2 "nje&tion: 4ossil )nergy: Retrieve 1 $ebruary 2>12? 243 A(" .ravity: Schlumberger 0il lossary: retrieve 22 anuary 2>12? 244 Te&) Tal# - DeneEuela: )eavy &rues: A(" ravity an refinery ains: /he 0il %rum : < anuary 2>11?
5>
"ight oil Ot)er=ise #no=n as &onventional oil: li)t oil )as an A(" ravity of 22S or over?245 $or e'ample: ,aui Arabias ne= blen of super li)t &rue )as an A(" ravity of 44S? 245 T)e oil prou&e from ibyan fiels is also typi&ally very li)t an t)e &ountrys nine e'port raes )ave A(" ravities t)at rane from 26-43?3S?246
#eavy oil Ceavy oil is a ense: vis&ous oil =it) lo= A(" ravity? *efinitions vary: but it is enerally a&&epte t)at t)e upper limit for )eavy oils is 22SA("? "n DeneEuela for e'ample: t)e Ba&)aquero Ceavy !rue Oil )as an A(" ravity of 1U?24 Ceavy oils are usually not re&overable in t)eir natural state t)rou) a =ell or usin orinary prou&tion met)os? /ost nee to be )eate or ilute so t)at t)ey &an flo= into a =ell or t)rou) a pipeline?245
$%tra heavy oil %'tra )eavy oil )as an A(" ravity of less t)an 1>S? 245
&itumen Ot)er=ise #no=n as Ioil sansI: bitumen s)ares many attributes of )eavy oil but is even more ense an vis&ous?24;
%ulphur content !rue oil &an also be measure in terms of sulp)ur &ontent ranin from s=eet to sour7? ,=eet &rue is usually efine as oil =it) a sulp)ur &ontent belo= >?5 per&ent: =)ile sour &rue )as a sulp)ur &ontent of >?5 per&ent or over? 24<
Impact on refinin5 T)e ensity an sourness of &rue oil feesto&#s affe&ts t)e amount of pro&essin an &onversion ne&essary to a&)ieve =)at is #no=n as an optimal mi' of prou&ts? i)t: s=eet &rue emans a )i)er pri&e t)an )eavier: sourer &rue as it requires less pro&essin an prou&es a reater per&entae of value-ae prou&ts: su&) as asoline: iesel an aviation fuel? Ceavier raes of fuel enerally require aitional pro&essin to prou&er li)ter prou&ts?24< 245 )at is Ceavy Oil an Co= is it $ormeH : !ig#one: retrieve 22 anuary 2>12? 246 ,auis 0e= ,uper i)t !rue Blen To Cit /ar#et "n April -,our&e: Internationa )nergy Agency: 31 /ar&) 2>11? 24 !rue Oil Types: A Barrel 4ull: 31 /ar&) 2>11? 24; )at is Ceavy Oil an Co= is it $ormeH: !ig#one: retrieve 22 anuary 2>12? 24< Types of !rue Oil: *este 0il: retrieve 23 anuary 2>12?
51
Crude oil blends Blene &rue is a mi'ture of &rue oils: blene in t)e pipeline to &reate a &rue =it) spe&ifi& p)ysi&al properties? T)is may be to reu&e vis&osity an ease transportation: or alternatively to &reate ae value &ompare to t)e ra= &rue? 25> Oil prou&in &ountries: parti&ularly t)ose =it) a many ifferent qualities of &rue from t)eir fiels: must e&ie =)i&) bran t)ey =ill put on t)e international mar#et? T)ere =ere aroun 16> &rue raes mar#ete lobally as of 2>12? "n orer to optimise investments in pipelines an storae fa&ilities: &ountries to reu&e t)e number mar#etable streams by blenin ifferent oil raes? $orten e'ample: t)e Brent blen inof 251 fa&t &omes from t)e blenin of 15 ifferent raes of oil from t)e 0ort) ,ea?
Crude Oil per&ent of national oil reserves are belo= 2;S A(" 251 an t)e "nternational %nery Aen&y "%A7 prei&te in its 2>12 report on "raq t)at future prou&tion is li#ely to in&lue a larer s)are of )eavier &rues?253 Co=ever some of t)e &rues prou&e at t)e Taq Taq fiel in t)e nort)er semi-autonomous uristan reion are as li)t as 4;S A(": ubbe by !euters as I&)ampane &rueI?254 !euters reporte in 0ovem ber 2>12 t)at "raq =as strulin to fin buyer s for its 2>13
oil output ue to &omplaints from refiners in Asia: %urope an t)e +, over )i) pri&es an variable quality?255
$%port blends T)e main e'port &rues &ome from Rumaila an ir#u#: t)e t=o larest a&tive fiels? T)e t=o blens use for e'port are t)e Basra i)t blen: transport e by tan#er from t)e sout): an t)e ir#u# blen: by pipeline to t)e nort)? 256 "n terms of quality: t)e Basra i)t blen is in t)e mile of t)e mar#et: &lose to t)e lobal averae ensity of 32?5S A("?256 T)e A(" ravity an sulp)ur &ontent for ea&) blen is s)o=n in t)e table belo=? Crude
API Gravity
Sulphur content
Basra i)t
34S
2?1V25
25> Blene !rue: Schlumberger 0Il lossary9, retrieve 2< 0ovember 2>12? 251 "raq oil T)e &rue oil quality ilemma: ulf *e&s9, 11 0ovember 2>12? 252 "raqi !rue Ceavier *ue to $uel Blenin Traers Ira' )nergy: 1 une 2>11? 253 "raq %nery Outloo#: International )nergy Agency: 6 ,eptember 2>12? 254 uristan Taq Taq oil e'ports rise a)ea of ,ept ealine !euters: < O&tober 2>12? 255 i)t &rue surplus spins =orl oil trae &ompass !euters: 16 0ovember 2>12? 256 "raq oil T)e &rue oil quality ilemma ulf *e&s9, << *ovember :;<:25 "raqi !rue Ceavier *ue to $uel Blenin Traers: Ira' )nergy: 1 une 2>11?
52
Basra /eium
3>S
2?6 V
Basra Ceavy
22-24S
3?4V
BasraBlen
32S
ir#u#
35?;S
1?<5V 25
na
*ue to t)e lare number of fiels an ifferin raes of &rue parti&ularly in t)e ,out)7: as =ell as t)e limite sea outlet an e'port routes: t)e &rue blenin pro&ess in "raq &an be problemati& 256 an a&&orin to t)e "%A: t)e &ountry I)as to offer is&ounts to &ompensate for t)e spe&ifi&ation of t)e elivere oil bein )eavier t)an t)e &ontra&tual fiures: as a result of t)e )eavier &rues an )eavy fuel oil bein blene into t)e e'port stream?I25; A former offi&ial at t)e O(%! ,e&retariat &omments t)at "raq la&#s a proper blenin system to ensure a relatively stable quality of its &rue oil e'port streams? 25< Co=ever t)e "%A report also notes t)at mu&) of future eman for "raqi &rues is to &ome from Asia: =)ere lare: moern refineries are equippe to eal =it) pro&essin a rane of spe&ifi&ations?26>
Natural 0as -hat is natural 5as: About ;5 per&ent of natural as prou&e from &onventional =ells is met)ane: a )i)ly flammable &ompoun mae up of one &arbon atom an four )yroen atoms?261 "t is &olourless an: in its pure form: oourless? As t)e as )as no oour: as &ompanies often a a &)emi&al to t)e as to ive it a istin&tive smell so t)at as lea#s may be ete&te by smell?262 T)e units of measurement use for natural as are enerally base on volume an measure in &ubi& feet a &ubi& foot bein one foot lon: by one foot =ie: by one foot eep7? T)is volume is usually e'presse in B!$ billion &ubi& feet7: T!$ trillion &ubi& feet7 an /!$ t)ousan &ubi& feet7 ?263 "t &an also be measure in terms of &ubi& metres? A&&orin to t)e +, *epartment of %nery: for many years natural as =as &onsiere =ort)less an is&are: an is still release by flarin toay in many &ountries?262 0atural as &an be foun as eit)er asso&iate as: non-asso&iate as: =et as a type of non-asso&iate as7 or &oal be met)ane?261 25; "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? 25< "raq oil T)e &rue oil quality ilemma: ulf *e&s9, 11 0ovember 2>1226> "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? 261 Oil an .as Resour&es an T)eir +ses: /))IC: retrieve 13 $ebruary 2>12? 262 0atural .as: US %e1artment of )nergy: retrieve 13 $ebruary 2>12? 263 0atural .as /easurement: +(: retrieve 13 $ebruary 2>12?
53
'on(associated gas 0on-asso&iate as is as =)i&) is foun in reservoirs =)i&) o not &ontain sinifi&ant quantities of &rue oil ?264 "t often o&&urs at reater ept)s =)ere )eat )as split all of t)e )yro&arbons into smaller: li)ter as mole&ules? ,)ale as is one type of un&onventional non-asso&iate as?261
Associated gas Asso&iate fount)e in asso&iation &ruebeoil : eit)er issolve oil reinje&or as a &ap of freeas asisabove oil? )ere it=it) &annot use: asso&iate asin is t)e eit)er 265 te into t)e =ell: flare or vente?
oal bed methane !oal be met)ane !B/ 7 or &oal seam as !,.7 is t)e natural as e'tra&te from &oal bes urin unerroun &oal minin?
6istory of natural 5as T)rou) t)e 1;>>s t)e natural as =)i&) =as foun =as use almost e'&lusively as a fuel for lamps? Co=ever t)e invention of t)e bunsen burner in 1;;5 prove t)at as &oul be use to provie )eat for &oo#in an =armin builins? T)e &onstru&tion of pipelines allo=e natural as to be brou)t to ne= mar#ets? One of t)e first substantial pipelines =as built in 1;<1 in t)e +,: )o=ever fe= pipelines =ere built until after t)e ,e&on orl ar in t)e 1<4>s?266
Role of natural 5as in the ener5y mi# T)e "nternational %nery Aen&y "%A7 estimate in 2>11 t)at natural as &oul overta#e &oal an rival oil by 2>35 to a&&ount for over 25 per&ent of lobal enery eman?26 A&&orin to t)e onon-base Petroleum )conomist: t)e ro=in interest in as as an element in toays enery mi' represents a Istru&tural s)ift in enery mar#ets?I 0atural as )ols several benefits as a fuel for a lo=-&arbon future: in&luin t)e lo=est &arbon footprint of all fossil fuels? a s)orter lea time to buil as-fire po=er plants an reater operational fle'ibility? ability to reu& e reen)ouse as emissi ons by 25 per&ent in t)e transport se&tor 264 0O0-A,,O!"AT%* .A, *%$"0"T"O0: 0il and as lossary : retrieve 13 $ebruary 2>12? 265 Asso&iate .as: A Barrel 4ull: retrieve 13 $ebruary 2>12? 266 T)e Cistory of 0atural .as: US %e1artment of )nergy: retrieve 13 $ebruary 2>12? 26 .as &oul ma#e up 25V of lobal enery mi' by 2>35 "%A: Platts: 2>11?
54
&ompare to traitional motor fuels?26; T)e "%A also points out t)at as &an )elp to iversify enery supply an so improve enery se&urity?26<
Natural 0as Flarin5 .as flarin is t)e isposal by burnin of un=ante asso&iate natural as release from an oil fiel by burnin it? "t is =iely use =)ere t)ere is no infrastru&ture to ma#e use of t)e as? Co=ever it is =iely re&oniEe as a =aste of enery an as environmentally anerous in &ontributin &arbon emissions to t)e atmosp)ere? 2> T)e top four flarers internationally by t)e .lobal .as $larin (roje&t ..$(7s 2>11 statisti&s =ere Russia: 0ieria: "ran an "raq? Co=ever a&&orin to Ira' 0il !e1ort: as flarin is a lobal problem on t)e es&ent as prou&in &ountries are in&reasinly manetisin t)e as in a maturin mar#et for t)e fuel? Bet=een 2>><-2>12 t)e pra&ti&e sa= a 22 per&ent e&rease on a lobal level: espite outliers su&) as "raq =)ere t)e level in&rease?21
Natural 0as Flarin5 in Iraq "n 2>12: as "raq =as rampin up prou&tion of &rue oil: "raq flare an estimate < billion metres b&m7 of asso&iate as: ran#in amon t)e =as top enou) five flarin nations in t)e&ubi& =orl: a&&ori n to t)e or Ban#? T)e asitbein flare to fuel all 22 of "raqs ele&tri& po=er nees an: a&&orin to avisor $abri&e /osneron *upin: t)e =aste as itself is =ort) aroun +, G5 million per ay ?21 Of t)e 1:;3; million &ubi& feet m&f7 per ay of natural as prou&e in t)e se&on )alf of 2>12: an averae of 1:253 million 6; per&ent7 =as flare?23 As of 2>12 "raqi la=s an reulations allo=e flarin of natural as an by &ontra&t: oil fiel operators =ere not &ompensate for as prou&e in asso&iation =it) &rue oil: t)us in&entivisin flarin a&tivities?22 Co=ever t)e ,out) .as (roje&t: a joint venture bet=een t)e Oil /inistry an oil major ,)ell is intene as an attempt to aress t)e problem by &apturin an utilisin asso&iate as from a number of sout)ern oil fiels?23 "n 2>12 ,)ell announ&e t)at t)e preliminary =or# it )a one in &apturin asso&iate as in Basra &ut o=n flarin by aroun 2> per&ent?21
26; +n&onventional .ass .lobal (otential: Petroleum )conomist: 1; uly 2>11? 26< Are e %nterin a .olen Ae of .asH: International )nergy Agency: 2>11? 2> .lobal .as $larin %stimates:*0AA: retrieve 15 $ebruary 2>12? 21 aste money: lobal &on&ern over "raqMs persistent as flarin: Ira' 0il !e1ort: 1 0ovember 2>11? 22 /y en&ounter =it) as flares in "raq: "orld Bank: 1; uly 2>11? 23 .as flarin )its unpre&eente levels in "raq: ())%: ; 0ovember 2>12?
55
Liquefied Natural 0as LN0! 0. is liquefie natural as: a &lear: &olourless: non-to'i& liqui : 24 prou&e by &oolin natural as to -26>S $a)ren)eit -16>U!7: at =)i&) point it be&omes a liqui? T)is pro&ess o&&urs to allo= more effi&ient transport of natural as: eit)er by tru&# or by sea?25 0. ta#es up 6>> times less spa&e t)an natural as in its aseous form?26 !onvertin natural as into 0. &an ma#e strane natural as eposits more e&onomi&allyinviable: as &onstru&tin pipelines be unli#ely e'pensive? "n aition: =ill e'ploe an un&onfine environment: so &an in t)e event of an 0.0. spill: t)enot natural as )as little &)an&e of initin an e'plosion? Ot)er benefits of 0. in&lue t)at t)e liquefi&ation pro&ess removes o'yen: &arbon io'ie: sulp)ur an =ater from t)e natural as: resultin in 0. =)i&) is almost pure met)ane? 26 On&e it rea&)es its estination: 0. is store as a liqui until it is =arme ba&# to natural as via t)e pro&ess of reasifi&ation?25
Production As of early 2>12: t)ere =ere 2> 0. prou&tion an e'port terminals =orl=ie: 63 import terminals an nearly 3>> 0. s)ips altoet)er )anlin appro'imately 1> million metri& tons of 0. every year? Oil major !ono&o()illips notes t)at t)ese numbers are prei&te to in&rease ramati&ally over t)e ne't e&ae ue to t)e ro=in 2
popularity of t)is &lean fuel sour&e? 0. plants are &apital intensive an rely on )eavy ebt? 2; But =)ile 0. is reasonably &ostly to prou&e: avan&es in te&)noloy are reu&in t)e &osts asso&iate =it) t)e liquefi&ation an reasifi&ation pro&ess? 26 T)e BP "orld )nergy 0utlook in 2>12 prei&te t)at 0. trae =ill ro = t=i&e as fast as lobal as prou&tio n: t)at is: at a rate of 4?4 per&ent per annum?2<
Liquid Petroleum 0as LP0! iqui (etroleum .as (.7: also referre to as liquefie petroleum as: is a mi'ture of aseous )yro&arbons: prou&e from natural as an oil e'tra&tion 66 per&ent7 an from oil refinin 34 per&ent7? Cen&e (. is an e'ample of an asso&iate as?2;> +nli#e liquefie natural as 0.7: =)i&) must be be store at at -162S! in orer to re24 )at is 0.H: Shell: retrieve 13 $ebruary 2>12? 25 Overvie=-About 0.: Center for Li'uified *atural as : retrieve 13 $ebruary 2>12? 26 iquifie 0atural .as 0.7: *aturalas-org: retrieve 13 $ebruary 2>12? 2 )at is 0.H: ConocoPhilli1s: retrieve 13 $ebruary 2>12? 2; Analysis %ast Afri&a ris#s missin 0. boom: !euters: 1< ,eptember 2>12? 2< orl %nery Outloo# 2>3>: BP: retrieve 13 $ebruary 2>12? 2;> )at is (.H: 4loas: 1 /ar&) 2>12?
56
main liquefie uner atmosp)eri& pressure: 2;1 (. be&omes a liqui =)en &ompresse at room temperature for storae an transport?2;2 )en natural as is e'tra&te from t)e roun: aroun <> per&ent of it is met)ane: an t)e rest is mae up of various liqui petroleum ases? T)e met)ane is separate from t)is mi'ture an transporte via pipelines? T)ese ases &an also be prou&e urin t)e &rue oil refinin pro&ess: usually prou&in aroun a 3 per&ent yiel?2;3 (. is mostly mae up of propane: butane or a mi' of t)e t=o? Ot)er elements present are primarily use as &)emi&al feesto&#s rat)er t)an fuel?2;4 (. =as first prou&e in 1<1> by alter ,nellin an t)e first &ar po=ere by propane ran in 1<13?2;5
3sa5e (. is popular as a fuel for omesti& use: as it is safe to store an portable? "t is use for portable &in rills: )ot =ater tan#s: refrierators: &aravans: or for use on boats or isolate &abins or loes? T)e fuel also )as many inustrial uses: in&luin uses in metal =or#in: lass =or#in an &erami&s: an for inustrial for#lifts an )eavy liftin?2;6 A&&orin to inustry &ommentator % .rabiano=s#i: (. =as one of t)e most &ommon alternative fuels in t)e =orl as of 2>11 an is a parti&ularly popular fuel for )eatin an &oo#in in &ertain areas of "nia an in rural parts of t)e +,? Ce reports t)at t)e fuel is be&omin an attra&tive sour&e of enery for people strulin to meet in&reasin )eatin bills?2; T)e orl iquefie (etroleum .as Asso&iation (.A7 estimates t)at more t)an < million ve)i&les in 3; &ountries &urrently operate on (.? !ite benefits of usin t)e fuel to po=er &ars rat)er t)an &onventional fuels in&lue reu&e reen)ouse as emissions: overnment in&entives an ta' brea#s in many &ountries: an afforability? Co=ever &ars must first unero a &onversion pro&ess to be able to run on (.?2; T)ou) rare: (. parti&ularly propane an butane7 poses a ris# of suen epressuriEation an e'plosions urin stora e an transport: so is often subje&t to reulations on its prou&tion: storae an transport?2;;
2;1 Te&)noloy: %een Shi11ing: retrieve 12 April 2>12? 2;2 iquefie 0atural .as 0.7 - natural as t)at is very: very &ol: )nergy 2uest: retrieve 12 April 2>12? 2;3 Co= iquefie (etroleum .as or#s: Ho&Stuff"orks: retrieve 1 /ar&) 2>12? 2;4 iquefie (etroleum .as (.7: "indo& on State overnment: retrieve 1 /ar&) 2>12? 2;5 (. A Cistory: )5traordinary !oad /ri1: retrieve 1 /ar&) 2>12? 2;6 (. A Cistory: )5traordinary !oad /ri1: retrieve 1 /ar&) 2>12? 2; Co= iquefie (etroleum .as or#s: Ho&Stuff"orks: retrieve 1 /ar&) 2>12? 2;; iquefie (etroleum .as (.7: "indo& on State overnment: retrieve 1 /ar&) 2>12?
5
LP0 mar=ets "n &ountries li#e "nia: =)i&) o not )ave reliable oil or natural as supplies: (. ma#es up a major s)are of t)e enery mi'? "n su&) &ases: many everyay )eatin an &oo#in nees are supplie by propane instea of oil or &oal? 2; A&&orin to t)e ( .as Asso&iation: rapi population ro=t) in many of t)e =orls evelopin &ountries )as outpa&e t)e in&rease in moern enery provision: a ap =)i&) &reates an opportunity for (. as mar#ets?2;<
LP0 in Iraq (. is a #ey )ouse)ol fuel in "raq for &oo#in at )ome an in restaurants? A&&orin to transportation avisor (oten an (artners: t)e probable eman in 2>>4 stoo at aroun 1?4 million tons per year? Co=ever omesti& supplies a&&ounte for about 25 per&ent of mar#et eman: &reatin a nee for (. imports by lan an sea? "n t)e aftermat) of t)e 2>>3 =ar s)ortaes of (. &yliners =ere seen: an rationin introu&e in t)e main &ities? But a bla&# mar#et emere =)ere t)e &ost of a &yliner &oul be 2 - 4 times )i)er?2<> (lants at ir#u# an Basra are t)e main sour&e of omesti& supplies? 2<> "n 2>11 a furt)er plant =as opene at )or /or in t)e nort)ern uristan reion: =)i&) prou&es (.?2<1
3nconventional +ner5y %ources A&&orin to oilfiel servi&es provier ,&)lumberer: un&onventional resour&es is an umbrella term referrin to oil an natural as prou&e by means t)at o not meet t)e &riteria for &onventional prou&tion? +n&onventional oil &onsists of a =ier variety of liqui sour&es t)an &onventional oil in&luin oil sans: e'tra )eavy oil: as-to-liquis an ot)er liquis? "n eneral &onventional oil is easier an &)eaper to prou&e t)an un&onventional oil?2<2 Co=ever t)e qualifi&ation &riteria for un&onventional resour&es are not fi'e an inevitably s)ift over time epenin on t)e availability of e'ploration an prou&tion te&)noloies: t)e environment anas: ot)er fa&tors? reservoirs As of 2>11 an for e'ample &oale&onomi& be met)ane !B/7: s)ale fra&ture ti)t asresour&es sans aresu&) &on-as 2<3 siere un&onventional resour&es? /any inustry analysts )ave pointe to a sinifi&ant future role for un&onventionals 2;< *evelopin Rural /ar#ets for ( .as: "orld LP as Association: 2>>5? 2<> "raq (. A ,trule: (oten 8 (artners, 2< anuary 2>>4? 2<1 $ire at *ana .as (. plant in "raq #ills one: !euters, :4 une 2>12? 2<2 $AFs about oil: International )nergy Agency: retrieve 2< 0ovember 2>12? 2<3 +n&onventional resour&es: Schlumberger: retrieve < $ebruary 2>12?
5;
in t)e enery mi' in many parts of t)e =orl? B( estimates t)at un&onventional as =ill a&&ount for 5 per&ent of +, prou&tion by 2>3>: t)at !B/ an s)ale =ill a&&ount for almost )alf of !)inese output ro=t): an t)at s)ale an ot)er ne= as sour&es &oul meet almost 6> per&ent of +, supply nees by t)e same ate? 2<4 0evert)eless t)e "%A notes t)e #ey &onstraint on furt)er evelopment of lobal un&onventional enery resour&es t)at in most pla&es: e'ploitation of su&) resour&es oes not enjoy t)e eree of so&ial a&&eptan&e require in orer to flouris): ue to environmental an so&ial &on&erns t)at )ave arisen?2<2
Fuel %ubsidies 0lobal snapshot .overnment &ontrol of t)e omesti& pri&es of petroleum prou&ts is a &ommon feature in evelopin &ountries?2<5 Co=ever fuel subsiies &over a =ie rane of overnment a&tions t)at lo=er t)e &ost of fossil fuels? 2<6 A report by t)e Oranisation for %&onomi& !o-operation an *evelopment O%!*7 in 2>11 liste over 25> iniviual buetary an ta'ation me&)anisms for alterin t)e pri&e of fossil fuels:2< an t)erefore estimatin fuel subsiies &an be iffi&ult? T)e most &ommonly use met)ooloy for quantifyin fuel subsiies: #no=n as t)e pri&e-ap approa&): &al&ulates subsiies applie to fossil fuels t)at are &onsume ire&tly by en-users or &onsume as inputs to ele&tri&ity eneration?2<; T)is approa&) &ompares an averae pri&e pai by t)e enuser =it) a referen&e pri&e t)at &orrespons to t)e full &ost of supply? A&&orin to t)e as)inton-base !enter for .lobal *evelopment: most oil e'porters subsiise t)eir fuel pri&es omesti&ally: sometimes at very lo= pri&es an implyin a lare &ost for overnments? 2<< T)e "nternational %nery Aen&y "%A7 estimates t)at t)e &ost of fossil-fuel subsiies amounte to +,G 4>< billion =orl=ie in 2>1>: an t)ey prei&t t)at subsiies &oul rise to +,G 66> billion by 2>2>: equatin to >? per&ent of lobal .ross *omesti& (rou&t .*(7? 3>> *euts&)e Ban# sai t)at in 2>1>: > per&ent of fuel subsiies =ere mae in t)e =orlMs major oil an as e'portin nations: an t)at su&) subsiies )ave been instrumental in rivin an in&rease in omesti& eman =it)in OraniEation of t)e (etroleum %'portin O(%!7 &ountries an ot)er oile'portin &ountries in t)e 2>>>s?3>1 2<4 T)e +, future in un&onventional: says B(: Petroleum )conomist: 2 /ar&) 2>11? 2<5 T)e /anitue an *istribution of $uel ,ubsiies %vien&e from Bolivia: .)ana: oran: /ali: an ,ri an#a: I(4: 2>>6? 2<6 $ossil $uel ,ubsiies: Price of 0il: retrieve 1< April 2>12? 2< "nventory of estimate buetary support an ta' e'penitures for fossil fuels: 0)C%: 2>11? 2<; $ossil-fuel subsiies J met)ooloy an assumptions: International )nergy Agency: retrieve 1< April 2>12? 2<< 0ierians *eman !)eap .as: But $uel ,ubsiies Are 0OT (ro-(oor: Center for lobal %evelo1ment: 6 anuary 2>12? 3>> orl %nery Outloo# 2>11: International )nergy Agency: 2>11? 3>1 !rue Oil "&eber .limpse Off est Afri&a: %eutsche Bank: 2 $ebruary 2>12?
5<
T)e table belo= illustrates t)e 15 &ountries t)at spent t)e most on fossil-fuel subsiies in absolute terms in 2>1>: alon =it) t)e relativ e value of su&) subsiies as a s)are of .ross *omesti& (rou&t .*(7?3>23>3 Country
Total Fossil-Fuel Subsidies Fossil-Fuel Subsidies (US $ billions as a share of G!P
"ran
;>?;
22?6V
,aui Arabia
43?5
Russia "nia
3
2?V 1?4V
!)ina
21?3
>?4V
%ypt
2>?3
DeneEuela
1
6?
+A%
1;?2
6V
"nonesia
16?>
2?5V
+Ebe#istan
12?>
3>?5V
"raq
11?4
Aleria
1>?6
6?6V
/e'i&o
>?
T)ailan
;?4
2?V
+#raine
?<
5?6V
13?;V
Criticism T)e "nternational %nery Aen&y "%A7 sai in a 2>11 report t)at t)e normal rationale for fuel subsiies is t)at t)ey promote e&onomi& evelopment an alleviate poverty? Co=ever t)ey arue t)at subsiies &an )ave unintene &onsequen&es su&) as en&ourain =asteful &onsumption: is&ourain enery effi&ien&y an reu&in t)e &ompetitiveness of rene=able fuels? !ru&ially t)e "%A reje&te t)e arument t)at fuel subsiies promote evelopment: aruin t)at instea t)ey foster inequality t)rou) isproportionately benefitin ri&)er )ouse)ols are &on&lue more li#elyt)at to o=n sumin &ars an ele&tri&al applian&es? T)erefore =)o t)e "%A fuel fuel-&onsubsiies are an e'tremely ineffi&ient means of assistin t)e poor: =it) only ei)t per&ent of t)e +,G 4>< billion spent on fuel subsiies in 2>1> rea&)in t)e poorest 2> per&ent of t)e lobal population?3>4 .2> eaers )ave also &riti&ise fuel subsiies: areein in 2>>< to 3>2 $ossil fuel subsiies a tour of t)e ata: /he uardian: retrieve 1< April 2>12? 3>3 $ossil-$uel &onsumption subsiy rate as a proportion of t)e full &ost of supply: 2>1>: International )nergy Agency: 2>12? 3>4 orl %nery Outloo# 2>11: International )nergy Agency: 2>11?
6>
Irationalise an p)ase out over t)e meium term ineffi&ient fossil-fuel subsiiesI: =it) t)e leaers of t)e Asia-(a&ifi& %&onomi& !ooperation A(%!7 ma#in a similar &ommitment t)e same year?3>5 "n /ar&) 2>12 a +nite 0ations *evelopment (roramme +0*(7 report put for=ar t)e &ase for eliminatin fossil fuel subsiies: aruin t)at t)e savins mae &oul be use to )elp t)e poorest &itiEens &ope =it) risin =orl enery pri&es? On top of t)is: t)e report sai t)at t)e move =oul aress &limate &)ane: reu&e enery =aste: &ut overnment e'peniture an minimise so&ial inequality? 3>6 BalaEs Corvat): t)e reports lea aut)or: pointe out t)at in %urope an !entral Asia t)e elimination of fuel subsiies )as been follo=e by bot) e&onomi& ro=t) an a fall in reen)ouse as prou&tion: =)i&) Iives quite a bit of =ei)t to t)e arument t)at t)is &an =or#I? Bet=een 1<<> an 2>>; ross omesti& prou&t .*(7 e'pane by 22 per&ent in t)e reion as a =)ole =)ilst &arbon emissions fell by 2; per&ent - t)e larest reional e&line in t)e =orl?3>
+limination of subsidies T)e elimination of fuel subsiies presents a politi&al ilemma: ue to t)e so&ial unrest =)i&) &an often result?3>; $or e'ample t)e propose removal of fuel an transport subsiies =as one of t)e #ey motivations be)in t)e violent !ara&aEo riots in t)e &apital of DeneEuela in 1<;< ? 3>< $urt)ermore: in t)e first quarter of 2>12 alone: multiple protests an stri#es =ere laun&)e in rea&tion to t)e prospe&t of fuel subsiy &uts? "n anuary 2>12 0ieria e'perien&e a =ave of protests in response to t)e overnments e&ision to remove subsiies on importe oil prou&ts: for&in t)e overnment to partially re-instate t)e subsiies?31> .)anaian fuel pri&es in&rease by about 2> per&ent =)en t)eir fuel subsiy =as &ut at t)e en of 2>11: 311 &ausin &ivil so&iety roups to tal# of nation=ie stri#es 312313 an for&in a poli&y reversal in $ebruary 2>12? 314 "n /ar&) 2>12 t)e "nonesian overnment =as for&e to rule out a fuel subsiy &ut after =ee#s of protests a&ross t)e &ountry? "nonesian offi&ials =ere =ary of t)e politi&al &onsequen&es of fuel pri&e )i#es - in 1<<; a fuel pri&e rise in "nonesia )elpe trier 3>5 "nventory of estimate buetary support an ta' e'penitures for fossil fuels: 0)C%: 2>11? 3>6 $rom Transition to Transformation: United *ations %evelo1ment Programme : retrieve 1; April 2>12? 3> !uttin fuel subsiies #ey to sustainable evelopment J report: Alert *et: 13 April 2>12? 3>; Removal of $uel ,ubsiies in 0ieria An %&onomi& 0e&essity an a (oliti&al *ilemma: Brookings Institute: 1> anuary 2>12? 3>< !ara&aEo as $orerunner to Anti-0eoliberalism (rotests: ,tates DeneEuelas !)WveE: ?ene#uela Analysis: 6 O&tober 2>11? 31> !rue Oil "&eber .limpse Off est Afri&a: %eutsche Bank: retrieve 1< April 2>12? 311 Co= .)ana: TanEania: +ana ta&#le fuel subsiy: Business%ay: 1; anuary 2>12? 312 .)ana Reinstates $uel ,ubsiy But Ci)er Transport $ares Remain: Sahara!e1orters-com: ; $ebruary 2>12? 313 (rotests: stri#es may erupt in .)ana over removal of fuel subsiy: Punch: 1< anuary 2>12? 314 .)ana mi'in politi&s an fuel pri&es: 4inancial /imes: < $ebruary 2>12?
61
stuent riots t)at topple t)e 32-year ,u)arto i&tators)ip? 315
Oilfield %ervices Industry Oilfiel servi&es &ompanies assist rillin &ompanies in t)e oil inustry in settin up oil an as =ells? ,u&) &ompanies may manufa&ture: repair or maintain t)e equipment use in oil e'tra&tion an transport? ,ervi&es &an in&lue seismi& testin mappin t)e eoloi&al stru&ture beneat) t)e roun7: transport servi&es su&) as movement of lan an =ater ris7 an ire&tional servi&es su&) as anle or )oriEontal )oles7? 316 ,tate-o=ne oil &ompanies an international oil &ompanies "O!s7 often la&# su&) te&)ni&al an eoloi&al s#ills an so turn to servi&e &ompanies? 31 A&&orin to a 2>1> report by .B" Resear&): t)e lobal oilfiel servi&es inustry )as =itnesse &onsierable ro=t) in re&ent years? "t is e'pe&te to be&ome a G2>> billion inustry by 2>15 up from G14> billion in 2>>;7? "n part t)is is ue to t)e ro=t) in a&tivity in offs)ore fiels aroun t)e =orl?31;
*a;or trends Unconventionals and offshore drilling "nustry observers prei&tfor t)at bureonin un&onventional inustry =ill &reate a boost in eman t)et)e servi&es inustry? (rou&tion ofenery s)ale oil an ot)er un&onventionals brins loisti&al an te&)noloi&al &)allenes an emans a )ue in&rease in t)e number of ris supplie? A sure in offs)ore rillin a&tivity is also prei&te to boost eman? T)e )conomist reporte: for e'ample: t)at Ameri&an servi&e provier Calliburton =as plannin to boost its =or#for&e of 6>:>>> by 25 per&ent over 2>11? *a)lman Rose: a ban#: estimate t)at lobal e'ploration buets =oul rise by aroun 14 per&ent in 2>11 to +, G533 billion? A&&orin to reports in t)e )conomist ne=spaper: t)e +, is t)e &entre of t)e oilfiel servi&e boom: =)ere firms pioneere t)e te&)nique of )oriEontal rillin in orer to a&&ess s)ale oil an s)ale as?31<
Demand for local content A&&orin to Ayman Asfari: !%O of +-base (etrofa&: national oil &ompanies 0O!s7 are in&reasinly emanin to see lo&al &ontent ie? lo&al operators7 playin a part in ne= &ontra&ts for e'ploration: prou&tion an plant &onstru&tion? T)is puts interna315 %merin Asia strules to &ut soarin fuel subsiies: 4inancial /ribune: 1 April 2>12? 316 "nustry Canboo# T)e Oil ,ervi&es "nustry: Investo1edia: retrieve 12 /ar&) 2>12? 31 T)e oil-servi&es inustry Riin t)e mar#et: )conomist: 23 une 2>11? 31; T)e $uture of t)e Oil $iels ,ervi&es "nustry to 2>15 - Reboun in %'ploration an *rillin A&tivity *rives .ro=t): BI !esearch: /ay 2>1>? 31< T)e oil-servi&es inustry Riin t)e mar#et: )conomist: 23 une 2>11?
62
tional oil &ompanies at a isavantae an &reates an opportunity for oil servi&es &ompanies to buil assets =it) lo&al partne rs: maintain t)at asset for a perio of time an t)en )an it ba&# to t)e 0O! to run in t)e lon term? 32>
8ey industry players A&&orin to Arabian 0il and as: as of 2>>; t)e ten larest oilfiel servi&e &ompanies lobally =ere 1? ,&)lumberer imite
6? $luor
2? Calliburton
? eat)erfor "nternational
3? ,aipem
;? B ,ervi&es !ompany
4? Transo&ean t?
5? Ba#er Cu)es
1>? !)ina Oilfiel ,ervi&es t?
An )conomist report suests t)at by offerin a full rane of oilfiel servi&es: t)e bi four of t)e inustry ,&)lumberer: Calliburton: Ba#er Cu)es an eat)erfor "nternational7 enjoy an avantae over smaller firms: as 0O!s often prefer to eal =it) only one firm rat)er t)an eal =it) several?321 "n 2>11 a roup of business s&)ool professors &arrie out a stuy to ientify t)e 1>> most innovative &ompanies lobally? T)ey foun t)at t)e oilfiel servi&es inustries a&&ounte for si' of t)e top 1>>? T=o of t)ese =ere ,&)lumberer an Calliburton: an a furt)er t=o =ere leain rillin equipment &ompanies $/! Te&)noloies an !ameron "nternational? T)e remainin t=o =ere !)ina Oilfiel ,ervi&es an Tenaris ,A?322
32> Ayman Asfari on (etrofa&s roa to *amas&us: /elegra1h: 3> O&tober 2>1>? 321 T)e oil-servi&es inustry Riin t)e mar#et: )conomist: 23 une 2>11? 322 /usins T)e "nnovators in T)e Oilfiel ,ervi&e "nustry "entifie: !ig6one: 3> O&tober 2>1>?
63
Overvie$ of Re5ulatory Frame$or= in Iraq "raqs oil an as inustry operates uner t)e frame=or# lai out by t)e 2>>5 !onstitution? Co=ever =)ile t)e &onstitutional o&ument ma#es &lear t)at t)e "raqi people are t)e ultimate o=ners of t)e &ountrys natural resour&es: t)ere is less e'pli&it &larifi&ation over t)e question of jurisi&tion over )yro&arbon e'ploration an evelopment bet=een t)e &entral overnment an t)e reions? A ne= )yro&arbons la= intene to &reate a more stable investment reime remaine stalle in parliament as of 2>12: an in t)e meantime t)e feeral system of resour&e evelopment usin te&)ni&al servi&e &ontra&ts7 &o-e'ists =it) t)e uristan Reional .overnments approa&) preferrin prou&tion s)arin areements7: =)i&) are &onteste by &entral overnment?323 T)e nort)ern urs )ave pursue an inepenent oil poli&y an too# an important step to=ars t)at en by raftin t)eir o=n oil la= in 2>>?324
9ypes of Oil Contracts ,everal types of oil &ontra&ts are in use t)rou)out t)e =orl •
•
•
•
&on&essions: in =)i&) t)e &ontra&tor o=ns t)e oil in t)e roun? prou&tion s)arin areements (,A7: in =)i&) t)e &ontra&tor o=ns a s)are of oil on&e it is out of t)e roun? servi&e &ontra&ts: in =)i&) t)e &ontra&tor re&eives a fee for e'tra&tin t)e oil from t)e roun servi&e &ontra&ts are often epi&te as a subset of (,As7? oint ventures Ds7: in =)i&) t)e state enters into partners)ip =it) one or
more oil &ompanies? T)e publi&ation by Berlin-base OpenOil: Oil !ontra&ts Co= to rea an unerstan t)em: notes t)at it is rare to fin any &ontra&t t)at fits &leanly into any one of t)ese &ateories: )o=ever: an in reality most &ontra&ts &ombine some elements of ea&)?325 323 "raq %nery Outloo#: I)A: < O&tober 2>12? 324 "raq an t)e urs: t)e )i) sta#es )yro&arbons ambit: International Crisis rou1: 1< April 2>12? 325 +nerstanin Oil !ontra&ts: 01en0il: retrieve 14 anuary 2>13?
64
All oil &ontra&ts must aress t=o #ey issues: a&&orin to Revenue at&) "nstitute R"7 )o= proXts: often &alle IrentsI: are ivie bet=een t)e overnment an parti&ipatin &ompanies an )o= &osts are to be treate?326
Concessions !on&essions are t)e olest form of a petroleum &ontra&t: )avin first been evelope urin t)e oil boom in t)e +nite ,tates in t)e 1< t) &entury?32 )en t)ey =ere introu&e aroun t)e =orl: &on&essions =ere one-sie &ontra&ts favorin &ompanies: 326 of toay =ere a&&orin to Revenue =)en manyofofot)er t)e resour&e-ri&) nations epenen&ies: &olonies:at&): or prote&torates states or empires?
!on&essions are base on t)e Ameri&an system of lan o=ners)ip: in =)i&) a lan o=ner o=ns all resour&es in t)e roun uner t)e lan )e o=ns an t)eoreti&ally all resour&es in t)e air above it? !on&essions rant an area of lan: sub-soil resour&e s in &lue: to a &ompany so t)at if a &ompany is&overs oil on a pie&e of lan: it o=ns t)at oil? "n &on&ession &ontra&ts t)e &ontra&tor also )as e'&lusive ri)ts to e'plore an prospe&t for oil in t)at pre-efine area? )ile t)e benefit to &ompanies &omes ire&tly in t)e form of o=ners)ip over any oil an as foun: overnments rantin &on&essions benefit in t)e form of ta'es an royalties on oil an as prou&e?32 !ompanies &ompete by offerin bis: often &ouple =it) sinin bonuses: for t)e li&ense to t)ese ri)ts? T)is type of areement is quite &ommon t)rou)out t)e =orl an is use in u=ait: ,uan: Anola: an %&uaor: amon ot)er &ountries?326
Advantages and disadvantages $or overnments: &on&ession &ontra&ts )ave t)e avantae of bein relatively strai)tfor=ar &ompare to ot)er #ins of areements: an t)e eree of professional support an e'pertise require is often less &omple' t)an t)at neee to neotiate Ds or (,As? Also: t)e )ost overnment #eeps t)e fees pai by t)e &ontra&tor rearless of =)et)er oil is foun an &ommer&ial prou&tion ta#es pla&e? All finan&ial ris#s of evelopment: in&luin t)e &osts of e'ploration: are absorbe by t)e &ontra&tor? T)e main isavantae: for overnments: of &on&ession &ontra&ts is t)at &ompanies biin for t)e &ontra&t ten to be more &autious in t)eir bis? "f t)ere oil an as reserves are not proven t)en t)ere is no uarantee t)at a &ompanys &osts =ill be &overe: so t)e )ost overnment may not ma'imiEe its potential return?326
Production sharin5 a5reements
(rou&tion s)arin areements (,As7: sometimes &alle prou&tion s)arin &ontra&ts (,!s7: o not vest a &ontra&tor =it) o=ners)ip over t)e oil in t)e roun? "nstea o=ners)ip of t)e resour&e lies =it) t)e state? "n t)is situation t)e (,A is rafte so t)at a &ontra&tor &an e'tra&t t)e overnments oil on be)alf of t)e overnment? T)e (,A =as first use in "nonesia in 1<66: =)en t)e overnment e&ie to maintain 326 A ReporterMs .uie to %nery an *evelopment: !evenue "atch: retrieve 14 anuary 2>13? 32 +nerstanin Oil !ontra&ts: 01en0il: retrieve 14 anuary 2>13?
65
o=ners)ip of t)e oil in t)e roun: so t)at t)e international &ompany )a t)e ri)t to e'plore for oil but aine t)e ri)t to o=n it an sell it or a portion of it7 on&e it )a been e'tra&te? "n "nonesia: a&&orin to Revenue at&): t)e &on&ession li&ensin met)o )a been is&reite as a lea&y of imperialisti& an &olonial perios an t)e (,A system =as evelope in t)e &onte't of a broaer movement of resour&e nationalism amon oil-prou&in &ountries =orl=ie?32; ,in&e t)at time (,As )ave sprea lobally an are no= a &ommon form of oin business: espe&ially in !entral Asia an t)e !au&asus?32< Oil &ompanies are entitle to &ost re&overy for operatin e'penses an &apital investment: an re&eive a s)are of annual earnins - &ost oil - to t)is effe&t? On&e t)e &ompanies )ave use annual earnins to repay t)emselves: t)e rest - profit oil - is s)are a&&orin to t)e aree per&entae ivision =it) t)e )ost overnment? 32<
Advantages and disadvantages All Xnan&ial an operational ris# rests =it) t)e international oil &ompanies in t)e (,A arranement: an a )ost overnment )as t)e ae avantae t)at it s)ares any potential proXts =it)out )avin to ma#e an investment: unless it aree to o so? $or &ompanies: t)e avantae in some &ountries is t)at t)e (,A is superior to all ot)er present an future la=s: =it) t)e result t)at t)e overnment effe&tively surreners its ri)t to aopt ne= la=s an reulations if t)ey aversely impa&t any ri)ts of t)e oil &ompany uner t)e (,A?32< A isavantae of t)e (,A an for )ost overnmentsmust is t)at it a&&ess puts a premium on environ)i)ly professional neotiations: t)e overnment )ave to te&)ni&al: mental: Xnan&ial: &ommer&ial: an leal e'pertise? T)is is more feasible for some oilri&) &ountries t)an ot)ers?32<
%ervice contracts i#e a (,A: a servi&e &ontra&t oes not ive an o=ners)ip ri)t to oil in t)e roun? +nli#e a (,A: in a servi&e &ontra&t t)e international &ompany never a&tually ains o=ners)ip: or title: to t)e oil prou&e eit)er? "n t)ese &ases t)e &ompany is simply pai a fee for its servi&es in e'tra&tin t)e overnments oil?32;
>oint ventures Anot)er arranement: sometimes &onsiere to be a fourt) type of &ontra&tual arranement: is t)e joint venture D7: =)i&) involves t)e state: t)rou) a national oil &ompany: enterin into a partners)ip =it) an oil &ompany or a roup of &ompanies? T)e D itself is in t)is &ase a=are t)e ri)ts to e'plore: evelop: prou&e an sell petroleum?32; Be&ause t)ere is no &ommonly-a&&epte form or stru&ture for Ds: t)ey are less &ommonly use as t)e basi& areement bet=een an oil &ompany an a )ost overnment? Ds require )ost overnments an &ompanies to o t)ins jointly: so if 32; +nerstanin Oil !ontra&ts: 01en0il: retrieve 14 anuary 2>13? 32< A ReporterMs .uie to %nery an *evelopment: !evenue "atch: retrieve 14 anuary 2>13?
66
t)e parties fail to =or# toet)er t)e neotiations &an be painsta#in an isareement &ommon?33>
Advantages and disadvantages $or t)e overnment: t)e only avantae of a D is t)at it is not alone in e&ision-ma#in on oil an as matters an &an &ount on t)e e' pertise an s)are sta#e of a major international &ompany? One of t)e main isavantaes of Ds is t)at t)ey require more e'tene neotiations an require mu&) more leal avi&e be&ause t)eir format is so ambiuous? Aitionally: &osts must also be s)are bet=eenint)e t)e )ost overnment is a ire&t an responsible parti&ipant t)eparties: naturalmeanin resour&et)at e'tra&tion: an responsibility also brins =it) it liability: in&luin for environmental amae?33>
9reatment of Oil in Iraq4s 1//? Constitution T)e "raqi !onstitution of 2>>5 fun&tions as t)e reulatory frame=or# of "raqs oil an as se&tor? T)e !onstitution &ontains several provisions t)at aress: in some=)at vaue terms: t)e &ontrol an istribution of natural resour&es?331
Articles concernin5 natural resources Only t=o arti&les of t)e !onstitution &ontain provisions t)at eal =it) "raqs natural resour&es arti&les 111 an 112?332 Arti&le 111 of t)e !onstitution states Oil an as are o=ne by all t)e people of "raq in all t)e reions an overnorates? 332
Cen&e: t)e o=ners)ip of any parti&ular resour&e is not attribute to any parti&ular roup or eorap)i&al or politi&al reion?331 Arti&le 112 of t)e !onstitution states $irst T)e feeral overnment: =it) t)e prou&in overnorates an reional overnments: t)eits manaement oil an as e'tra&te fromtopresent fiels: provies)all t)atunerta#e it istributes revenues inofa fair manner in proportion t)e population istribution in all parts of t)e &ountry: spe&ifyin an allotment for a spe&ifie perio for t)e amae reions =)i&) =ere unjustly eprive of t)em by t)e former reime: an t)e reions t)at =ere amae after=ars in a =ay t)at ensures balan&e evelopment in ifferent areas of t)e &ountry: an t)is s)all be reulate by a la=? 33> A ReporterMs .uie to %nery an *evelopment: !evenue "atch: retrieve 14 anuary 2>13? 331 Oil an as &ontra&ts in "raq: "ho9s "ho Legal: uly 2>1>? 332 "raqi !onstitution: United *ations Assistance (ission for Ira': retrieve 14 *e&ember 2>11?
6
,e&on T)e feeral overnment: =it) t)e prou&in reional an overnorate overnments: s)all toet)er formulate t)e ne&essary stratei& poli&ies to evelop t)e oil an as =ealt) in a =ay t)at a&)ieves t)e )i)est benefit to t)e "raqi people usin t)e most avan&e te&)niques of t)e mar#et prin&iples an en&ourain investment?332
Be&ause t)e term present fiels is not efine: it remains un&lear =)et)er it in&lues only fiels t)at are &urrently prou&in or if it e'tens to ot)er fiels? ,imilarly: =)et)er t)e &urrently prou&in fiels in&lue partially evelope fiels also remains un&lear?%rror Referen&e sour&e not foun T)e proper roles an aut)orities of feeral an reional aut)orities for equitably333s)arin oil an as an ma#in stratei& e&isions is a furt)er point of &ontention? T)e "raqi feeral overnment an t)e uristan Reional .overnment R.7 &ontinue to &las) over t)is: =)i&) is =)y ne= se&tor leislation as of late 2>12 remaine stalle? 334 T)e feeral overnment maintains t)at t)e !onstitution oes not allo= t)e R. to aopt unilateral an permanent measures over t)e manaement of oil an as fiels? +ner t)is interpretation any &ontra&t sine after t)e raft oil an as la= =as aree in $ebruary 2>> is eeme illeal until revie=e an approve by t)e "raqi /inistry of Oil?335 0onet)eless: t)e !onstitution oes not e'pressly aut)oriE e eit)er t)e /inistry of Oil or t)e /inistrys (etroleum !ontra&ts an i&ensin *ire&torate (!*7 to a=ar &ontra&ts to international oil &ompanies "O!s7 eit)er? T)e /inistry of Oil interprets t)e leality of &ontra&ts a=are to "O!s on t)e rouns t)at 17 t)e &onstitutional requirement for t)e approval of t)e !oun&il of Representatives 336 t)e 325-seat main ele&te boy of representatives in "raq7 33 only applies to international treaties an areements bet=een t)e ,tate of "raq an ot)er states: so &ommer&ial &ontra&ts bet=een "raqi reional oil &ompanies an "O!s o not nee su&) approval: an 27 t)e te&)ni&al servi&e &ontra&ts T,!s7 =ere a=are uner t)e propose Cyro&arbon a= espite t)e fa&t t)at t)is is not yet approve by t)e !oun&il of Represen tat ives7?336
6ydrocarbon Le5islation in Iraq 33;
T)e !onstitution &alle for leislation oil se&torin "raqan various rafts2>>5 of ne= feeral )yro&arbons la=s )aveovernin been unert)e is&ussion sin&e 2>>6? *elays )ave arisen larely as a &onsequen&e of la&# of &onsensus bet=een &entral ov333 "raqs 0e't .overnment )at o t)e urs antH: /ime: 6 O&tober 2>1>? 334 +(*AT% 2 - "raqs ,)a)ristani retains )ar line on uris) oil !euters: 1> O&tober 2>11? 335 Oil po=er strule as +, leaves "raq: C** :12 *e&ember 2>11? 336 Oil an as &ontra&ts in "raq: "ho9s "ho Legal, uly 2>1>? 33 $a&t ,)eet "raqs !oun&il of Representative %le&tion: United *ations Assistance (ission for Ira' : 11 $ebruary 2>1>? 33; Oil e'perts ebate a ne= state oil &ompany: Ira' 0il !e1ort: 16 anuary 2>11?
6;
ernment an t)e reions?33< Ben ano of Ira' 0il !e1ort oes so far as to assert t)at t)e leislation )as be&ome t)e rouns for a pro'y battle over t)e balan&e of po=ers bet=een t)e &entral overnment: t)e semi-autonomous uristan reion: an t)e ot)er provin&es?33; T)e mu&)-is&usse raft oil an as la= or raft )yro&arbon la=7: #ey to resolvin lon-stanin isputes over t)e e'ploitation of "raqs reserves an boostin prou&tion: first re&eive approval by t)e "raqi !oun&il of /inisters in $ebruary 2>>? 336 Co=ever its approval by (arliament )as been repeately elaye by t)e politi&al stalemate bet=een Ba)a an t)e reions? *ue to t)e onoin politi&al isputes: as of late 2>12 no frame=or# la= )a been passe into la=: an t=o &ompetin 34> rafts of t)e o&ument =ere on t)e table a=aitin furt)er is&ussion in (arliament? T)e se&on #ey raft la= is t)e "raq 0ational Oil !ompany a=: =)i&) =oul re-establis) t)e "raq 0ational Oil !ompany issolve in 1<<7: t)ereby &reatin on&e aain a sinle entity to manae t)e &ountrys oil business? 34> T)ese t=o la=s are interepenent? T)e )yro&arbons la= =oul &reate a $eeral !oun&il for Oil an .as $!O.7: =)i&) =oul set t)e poli&y &arrie out by "0O!?341 "n t)eir analysis: Revenue at&) "nstitute state t)at espite t)e meias fo&us on t)e role of t)e private se&tor: t)e most &ontentious issue in "raqs leal frame=or# is t)e ivision of aut)ority bet=een t)e feeral &entre an t)e reions?342
6ydrocarbons la$ T)e "raq $eeral Oil an .as a= )as been referre to by eit) /yers or Revenue at&) "nstitute as Ione of t)e most eaerly a=aite an &ontentious pie&es of leislation in t)e oil inustry =orl=ie?I 343 T)e stalle la= s)oul set out terms reulatin )o= forein oil firms =ill be able to operate in "raq: resolve bitter isputes bet=een t)e &entral overnment an "raqi uristan: an remove a #ey obsta&le to t)e evelopment of t)e &ountrys )yro&arbon reserves?344 T)e ifferin rafts =)i&) )ave been is&usse sin&e 2>> are base on ifferin interpretations of t)e =orin of t)e 2>>5 !onstitution: mu&) of =)i&) la&#s &larity? 343 "n t)e summer of 2>11 t)e !abinet an (arlia ment ea&) prou&e t)eir o=n rafts of an oil la=? T)e raft ra=n up by t)e !abinet &on&entrate state oil po=ers in t)e &entral overnment: =)ile t)e (arliament version supporte by t)e R.7: istributes more aut)ority to t)e reions? T)e (arliament Oil !ommittee approve its o=n raft in Auust 2>11 an sent it to t)e full (arliament: but a roup of /(s loyal to (rime /inister al-/ali#i =al#e out of t)e session: bro#e quorum an effe&tively )alte t)e la=s proress? ater in O&tober 2>11: /ali#i an t)en-R. (rime /inister Bar)am ,ali) aree to restart neotiations ta#in an earlier raft la= from $ebruary 2>> as a base: )o=33< "raq %nery Outloo#: Internationa )nergy Agency: < O&tober 2>12? 34> "raq oil la= eal festers as &risis ras on: !euters: 26 anuary 2>12? 341 (roress on t=o #ey oil la=s: Ira' 0il !e1ort: 1 uly 2>11? 342 "raq Cyro&arbons eal $rame=or#: !evenue "atch Institute: retrieve 2< 0ovember 2>12? 343 Brea#in "raqs oil-la= stalemate: Petroleum )conomist: 1 *e&ember 2>11? 344 "raq oil la= eal festers as &risis ras on: !euters: 26 anuary 2>12?
6<
ever t)ese tal#s never too# pla&e?345 All of t)e raft versions bein &onsiere =oul &reate a boy &alle t)e $eeral Oil an .as !oun&il $O.!7: on =)i&) reions: overnorates an feeral overnme nt are represente?343 Co=ever ea&) version i&tates a ifferent stru&ture of po=ers an responsibilities? T)e !abinet raft envisaes an $O.! t)at reports to t)e e'e&utive: =)ile many oil &ommittee /(s believe it s)oul be an inepenent boy responsible to t)e (arliament?345 T)e prospe&t of a neotiate resolution to t)e impasse imme urin 2>11 follo=in aCas)emi: politi&al346 an &risiseepene spar#efollo=in by t)e sa&#in of a=are vi&e-presient Tariqto alisputes an over arrest &ontra&ts by t)e R. %''on/obil an ot)er oil majors: an furt)er isputes over &rue e'ports? "n April 2>12: uris) Oil /inister As)ti Ca=rami tol Ira' 0il !e1ort t)at t)e !onstitution alreay rants uristan t)e ri)t to evelop its resour&es =it) full autonomy: an sueste t)at a feeral oil la= may not even be neee in t)e R.: =)i&) passe its o=n reional la= in 2>>?345
Iraq National Oil Company La$ T)e raft "raq 0ational Oil !ompany a= =oul re-establis) t)e "raq 0ational Oil !ompany "0O!7 as a state-o=ne &ompany manain all of t)e state interests in &urrent an ne= fiels an operatin =it) a eree of finan&ial an aministrative 34
autonomy? As a result of t)e la=: t)e /inistry of Oil =oul be strippe of its operational responsibility to be&ome more of a poli&y-ma#in boy? 34; "t =oul also be li#ely to a&quire some po=ers &urrently )el by t)e uristan Reional .overnment R.7? ,upporters of t)e la= assert t)at if t)e &ompany is set up properly it =oul in&rease bot) t)e effi&ien&y of t)e Oil /inistry an be a more effe&tive ste=ar of t)e inustry? Co=ever Oil /inister arim al-uaibi state in 2>12 t)at It)is la= as not)in to =)at t)e /inistry of Oil is oin alreay?I34< ,in&e bein propose in 2>> t)is la= )as also unerone substantial &)anes an =as stalle as of 2>12?35>
Local content provisions As of 2>12 t)ere =ere no measures in pla&e in "raq t)at manate a &ertain level of lo&al &ontent in enery se&tor proje&ts: t)at is leislation =)i&) oblies &ontra&tors to ma#e use of lo&al oos an servi&es?34 ,u&) &on&erns are instea aresse uner Arti&le 26 345 (arliament rebuffs !abinet oil la=: Ira' 0il !e1ort: 24 April 2>12? 346 "raq vi&e-presient senten&e to eat) ami ealy =ave of insurent atta&#s: uardian: 1> ,eptember 2>12? 34 "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? 34; "raq oil la= eal festers as &risis ras on: Ira' 0il !e1ort: 24 Auust 2>11? 34< Oil e'perts ebate a ne= state oil &ompany: Ira' 0il !e1ort: 16 anuary 2>11? 35> (arliament releases offi&ial raft oil an "0O! la=s: Ira' 0il !e1ort: 24 Auust 2>11?
>
of "raqs moel te&)ni&al servi&e &ontra&ts: =)i&) stipulates t)at &ontra&tors s)oul allo&ate a minimum of +, G5 million annually to t)e &ountrys Trainin: Te&)noloy an ,&)olars)ip $un TT,$7: 351 alt)ou) t)is eman =as reu&e to G1 million for &ontra&ts a=are in "raqs t)ir li&ensin roun?352
Oil and Gas Licensing Rounds
Iraq4s First Licensin5 Round 1//'! Oil /inister Cussein ,)a)rist ani laun&)e "raqs first li&ensin roun in 2>>;? Bis on more barrels of oil in a sinle bi roun t)an at any ot)er time or pla&e in )istory =ere mae open to international oil &ompanies353: =)o )a not )a any sinifi&an t a&tivity in oil operations in "raq sin&e nationalisation in 1<4? ,ome 22 &ompanies too# part in t)e li&ensin roun?354 "n t)e en only one fiel: Rumaila: =as a=are in t)e au&tion pro&ess itself: t)ou) t=o ot)er fiels: /aysan an est Furna ()ase 1: =ere subsequently a=are in bilateral neotiations?355
Process By early 2>>; &ompanies =ere invite to pre-qua lify for an au&tion pro&ess? /any e' perts in resour&e transparen&y rear au&tions as t)e best =ay to manae bot) t)e aner of &orruption an asymmetry of information bet=een overnments an &ompanies at t)e prou&tion a=ar stae356? On t)e 1; $ebruary 2>>; t)e overnment announ&e some 35 international &ompanies: in&luin many of t)e so-&alle majors: )a passe t)e pre-qualifi&ation stae: out of a total of 14> &ompanies =)o applie? T)ey =ere evaluate on five &riteria te&)ni&al: finan&ial: leal: trainin: an C,% Cealt): ,afety an %nvironment7?35 Bet=een $ebruary 2>>; an April 2>><: t)e /inistry of Oil unertoo# a number of ot)er preparatory measure s &ommon for au&tions: su&) as publis)in pa&#aes of eoloi&al an ot)er ata for &ompanies to revie=: runnin a roas)o= to present t)e au&tion opportunities in onon an a =or#s)op to e'plain t)e au&tion pro&ess 35;? T)e 351 /oel (rou&in Oil $iel Te&)ni&al ,ervi&e !ontra&t ($T,!7: 23 April 2>>1>? 353 $irst Oil Bi Roun T)e .reatest ,)o= On %art): "ikileaks: 22 une 2>>>1>? 356 /anain t)e !urse of 0atural Resour&es - a &)arter for politi&ians: uardian: 5 $ebruary 2>>< 35 "raqs $irst i&ensin Roun - qualifi&ation: Ira' 0il 4orum: O&tober 2>>;? 35; "raqs $irst (etroleum i&ensin Roun: Petroleum Contracts and Licensing %ivision: retrieve 2
1
overnment also publis)e moel &ontra&ts for oil 35< an as 36> an invite &ompany &omments: =)i&) =ere t)en absorbe into a revision pro&ess in /ay 2>>
$valuation criteria T)e overnment announ&e t)ere =oul be t=o main &riteria on =)i&) all bis =oul be jue $irstly: t)e prou&tion plateau offere by a &onsortium for any iven fiel: =)ere t)e )i)er t)e prou&tion t)ey =ere uaranteein t)e better? T)e overnment itself set a minimum prou&tion level it =as prepare to a&&ept for ea&) fiel base on its reserves an )istori& prou&tion: =)i&) varie bet=een 2?5 million barrels per ay bp7 for Rumaila an 45>:>>> bp at /aysan? T)e se&on set of &riteria relate to t)e remuneration fee t)e &onsortium =oul a&&ept per barrel it prou&e on&e it rea&)e t)e plateau - t)e lo=er t)e fee: t)e )i)er t)e &ompanies =oul s&ore? "t =as on t)is question t)at t)ere =ere =ie is&repan&ies bet=een ma'imum remuneration fees set by t)e overnment: an offers mae by t)e &ompanies t)emselves? "n t)e &ase of Rumaila: B( offere t)e lo=est bi =it) an offer of G3?<< a barrel: but t)at =as still ouble t)e ma'imum t)e overnment spe&ifie of G2 per barrel?362 At ot)er fiels t)e aps =ere even =ier? At /aysan: for e'ample: t)e &onsortium le by !0OO! a&&epte a fee of G2?3> in later bilateral neotiations: )avin oriinally propose a fee of G21?4>?363
Results T)e only a=ar mae as a ire&t results of t)e t)e au&tion roun =as to B(: in asso&i ation =it) !)inese !0(!: for t)e Rumaila fiel: alt)ou) t)e a=ar =as not immeiate an bilateral neotiations &ontinue until a eal =as announ&e in 0ovember 2>>1>? T)e fa&t t)at only one a=ar =as announ&e in uly 2>>< out of so many bis an &ontra&t areas le some analysts to &lassify t)e pro&ess as failure 365? "n a lea#e +, iplomati& &able urin t)e perio it =as reporte t)at t)e results =ere not a &omplete vi&tory an t)at "raqi leaers sai t)ey =oul a&&elerate t)e se&on bi roun an loo# at Auust 2>1>? 35< T)e /oel (rou&in Oil $iel Te&)ni&al ,ervi&e !ontra&t ($T,!7 An Overvie=: ())S: 6 uly 2>> ey leal issues in t)e t)ir li&ensin roun in "raqs as fiels: Le5ology: 2 Auust 2>1>? 361 "raq !ontra&t Revisions !lear Obsta&les To Oil %'pansion: ())S: 4 /ay 2>> une 2>>1>? 364 B( in "raq: BP: retrieve < anuary 2>12? 365 "raq Oil Biin in ,)ambles: "all Street Journal: 1 uly 2>>
2
=ays to ma#e it Imore effe&tiveI t)an t)e first roun?366
Iraq4s %econd Licensin5 Round 1//'! T)e se&on roun of au&tions offere by t)e /inistry of Oil too# pla&e over t)e 11-12 *e&ember 2>>< ?36 T)e terms an pro&ess of t)e se&on roun =ere similar to t)e first?36; T)e lea time to &omplete t)e au&tion pro&ess =as faster for t)e se&on roun t)an t)e first be&ause t)e preliminary =or# )a been one?36< Ten major oilfiels =ere up for bi in t)e se&on roun: =)i&) prou&e eals for seven of t)ose fiels? T)e fiels re&eivin su&&essful bis =ere Calfaya: /ajnoon: Fayara: Bara: .arraf: 0ajma ) an est Furna 2? T)e t)ree fiels re&eiv in no bis =ere %ast Ba)a: t)e %astern $iels an /ile $urat?36
Process "n all: a total of 4> &ompanies pre-qualifie for t)e biin roun 3> after submittin ata provin t)ey met t)e "raqi Oil /inistrys &riteria ?31 T)e se&on roun follo=e t)e same pro&eures as t)e first roun =it) fe= eviations?
Results T)ere =ere 1 biin &onsortia in total: an t)e seven =innin &onsortia aine a&&ess to fiels =it) proven reserves of 32 billion barrels of oil: or over a quarter of "raqs proven reserves? T)e prou&tion proje&tions from t)e &ompanies =innin bis in t)e se&on roun )a t)e potential to a about 4?; million barrels of oil to its aily prou&tion total?32 T)e table belo= s)o=s t)e ma#e-up of t)e &onsortia: alon =it) aree per-barrel remuneration fees an t)e aree level of plateau prou&tion t)ey s)oul rea&) 33
366 "raq:s $irst Oil Bi Roun Too Car A BarainH: "ikileaks: 1 uly 2>>>>1> 3> "raqMs ,e&on Oil Biin Roun Bolstere by %''on: %ni *eals: Bloomberg: 1> *e&ember 2>>11? 32 2n Roun of Biin On "raqMs Oil $iels %ns As A ,u&&ess: (usings on Ira': 14 *e&ember 2>>>
3
Field
Calfaya
Co"pany #o"e country Co"pany type
Share in field
Service fee Production per barrel increase ($ (bpd
!0(!
!)ina
,tate
5>V
1?4>
(etronas
/alaysia
,tate
25V
1?4>
535:>>>
Total
$ran&e
(ubli&
25V
1?4>
535:>>>
,)ell
+T)e 0et)-
(ubli&
6>V
1?3<
1?; million
(etronas
erlans /alaysia
,tate
4>V
1?3<
1?; million
Fayara
,onanol
Anola
,tate
1>>V
5
12>:>>>
0ajma)
,onanol
Anola
,tate
1>>V
6
11>:>>>
Bara
.aEprom
Russia
,tate
4 >V
5?5>
1>:>>>
oas
,out) orea
,tate
3>V
5?5>
1>:>>>
(etronas
/alaysia
,tate
2>V
5?5>
1>:>>>
T(AO
Tur#ey
,tate
2>V
5?5>
1>:>>>
(etronas
/alaysia
,tate
6> V
1?4<
23>:>>>
ape'
apan
(ubli&
4>V
1?4<
23>:>>>
u#oil
Russia
(ubli&
;5V
1?15
1?; million
,tatoil
0or=ay
,tate
15V
1?15
1?; million
/ajnoon
.arraf ? Furna 2
535:>>>
Iraq4s 9hird Licensin5 Round 1/&/! "raq )el its t)ir bi roun on 2> O&tober 2>1> 34 for t)ree as fiels A##as: &ontainin an estimate 15; billion &ubi& meters b&m7 of natural asN /ansuriya): &ontainin appro'imately 13> b&mN an ,iba: &ontainin about 31 b&m?35 T)e A##as an /ansuriya) fiels )a been in&lue in t)e first roun of li&ensin: but /ansuriya) re&eive no bis an A##as re&eive only one bi t)at faile? ,iba )a oriinally in&lue in t)e se&on bi roun: )a but ini&ate =as remove t)e list before biinbeen bean? ,ubsequently: t)e overnment t)atfrom all t)ree fiels =oul be evelope by national efforts: but t)en e&ie to offer t)e fiels for au&tion in t)e t)ir roun after all?34
34 .as $iels Bi Roun "n "raq ,u&&ess it) Ris#: (iddle )ast )conomic Survey: 2 *e&ember 2>1>? 35 "raq in#s final eal ,oreas O.A,: .ahoo@ *e&s: 13 O&tober 2>11?
4
Process T)e &ontra&ts a=are in t)e t)ir li&ensin roun eliminate sinature bonuses: a sinifi&ant eparture from t)e first t=o rouns? Aitionally: t)e require annual &ommitment to t)e Trainin: Te&)noloy an ,&)olars)ip $un: 34 by =)i&) &ontra&tors fa&ilitate on-t)e-job trainin in petroleum operations for "raqi nationals an promote resear&) in oil an as te&)noloy: 36 =as reu&e from G5 million to G1 million?34 T)e &onversion for reu&e &onvertin natural eliverie into barrels of oil equivalent boe7fa&tor =as also from aboutas 225volume &ubi& meters to sabout 1>: allo=in 3 &ompanies to reister larer volumes of as prou&tion?
Results As a result of t)e t)ir roun: &ontra&ts =ere a=are to oreas oas: Tur#eys T(AO an u=ait %nery !ompany %!7? T)e table belo= s)o=s t)e ma#e-up of t)e &onsortia: alon =it) aree per-barrel remuneration fees an t)e aree level of plateau prou&tion t)ey s)oul rea&) Field
Co"pany
#o"e Co"pany Share in Service fee Production incountry type field per barrel ($ crease (" feet%&day
A##as /ansuriya)
oas T(AO
,? orea Tur#ey
,tate ,tate
1>>V 5>V
5?5>
4>> 32>
%!
u=ait
(ubli&
5>V
32>
/ajnoon
oas
,? orea
,tate
2>V
32>
,iba
%!
u=ait
(ubli&
6>V
?5>
1>>
,iba
T(AO
Tur#ey
,tate
4>V
?5>
1>>
+nli#e t)e first t=o rouns: t)e t)ir roun =as ominate by reional &ompanies: =it) major international oil &ompanies absent? Of t)e "O!s favoure by t)e Oil /inistry: only Total submitte bis? T)ey may )ave been repelle by tou) payment terms an an un&ertain se&urity situation in "raq: a&&orin to t)e !yprus-base /ile %ast %&onomi& ,urvey /%%,7? Anot)er sueste reason for t)e absen&e of some =as t)eir relative of e'posure in "raq an 3 t)eir relu&tan&e to overstret&)majors t)eir involvement unerla&# &urrent &ir&umstan&es? /%%, also sueste t)at t)e reional an eorap)i&al pro'imity of t)e above firms: spe&ifi&ally T(AO an u=ait %nery: playe a role in t)eir =innin of t)e &ontra&ts? it) its sta#e in t)e ,iba an /ansuriya) fiels: T(AO strent)ene its foot)ol in t)e "raqi upstream se&tor sin&e it alreay )a minority sta#es in Bara an in t)e /aysan 36 /oel ,ervi&e *evelopment an (rou&tion !ontra&t: *orth 0il Com1any: 23 April 2>>1>?
5
roup of oilfiels? u=ait %nerys involvement in "raq: mean=)ile: &oul )elp revive t)e e'port of "raqi as to u=ait? A&&orin to /%%,: t)ere )a been tal# of rea&tivatin a pipeline from Rumaila to u=ait t)at =as operational in t)e mi 1<;>s? 3;
Iraq4s Fourth Licensin5 Round 1/&1! "raqs fourt) li&ensin roun too# pla&e on 3>-31 /ay 2>12: =it) t=elve areas on offer: &overin a total of ;>:>> square #ilometers?3< T)e biin roun in&lue bot) une'plore areas3;> an ne=ly is&overe fiels t)at )a not yet been e'ploite?3;1 ,even of t)e t=elve blo&#s in&lue in t)e roun =ere as prone: =)ile t)e rest )ave oil potential:3;2 &ontainin a &ombine 2< billion &ubi& meters b&m7 of as an 1> bil lion barrels of &rue oil?3;3 "raq i not ne&essarily plan to bein evelopment or prou&tion from any oil fiels is&overe: usin t)em instea to maintain an boost reserves: a&&orin to Abul-/a)y al-Ameei: )ea of t)e (etroleum !ontra&ts an i&ensin *ire&torate (!*7? Reserve in&reases &oul offset e'pe&te epletion in ot)er fiels an strent)en "raqs &ase in &onvin&in O(%! to set an e'port quota for t)e "raqi inustry? !ompanies is&overin as: on t)e ot)er )an: =oul be allo=e to prou&e it? 3;4 T)e t=elve sites offere lie in t)e provin&es of 0ineve): *iyala: asit: Basra: /ut)anna: Faisiya an Babil:3;3 as =ell 0ajaf: arbala: ,ama=a: *i=aniya an Anbar: =)i&) =ere not in&lue in t)e previous rouns?3;5 %i)t of t)e t=elve blo&#s are situate in t)e =est of t)e &ountry alon t)e "raq-,yria an "raq-,aui borers?3;6
Process T)e fourt) roun of li&ensin =as t)e first to offer e'ploration &ontra&ts &ompare to t)e te&)ni&al &ontra&ts offere in t)e first t)ree rouns? 3;6 T)e au&tion )a oriinally been s&)eule for 0ovember 2>11: but =as elaye repeately: first to anuary 2>12 3;2 an t)en to -; /ar&) before finally ta#in pla&e in /ay?3; As for t)e &ause of t)e elay: an "raqi parliamentary &ommittee )a requeste t)at t)e Oil /inistry efer t)e bi roun an not sin any more &ontra&ts unti l a ne= 3; .as $iels Bi Roun "n "raq ,u&&ess it) Ris#: (iddle )ast )conomic Survey : 2 *e&ember 2>1>? 3< $ourt) i&ensin Roun in "raq: results announ&e une 2>12: %eloitte: une 2>12? 3;> "raq 4t) biin roun offers ne= opportunities for "O!s: )valuate )nergy 12 /ay 2>11? 3;1 "raq sets ate for oil an as li&ensin roun: Al3Shorfa: 3 *e&ember 2>11? 3;2 T)e $ort)&omin %'ploration Blo&#s Bi Roun "n "raq "ssues $or !onsieration: (iddle )ast )conomic Survey: 6 une 2>11? 3;3 "raq Offers 12 0e= Oil Blo&#s in 4t) Roun: Ira' Business *e&s: 25 April 2>11? 3;4 "raq re=or#s fees to bolster 4t) enery au&tion: !euters: 13 ,eptember 2>11? 3;5 "raqi Oil /inistry (repares 4t) i&ensin Roun: Ira' Business *e&s: 21 /ar&) 2>11? 3;6 aun&) of t)e 4t) i&ensin Roun in "raq 2>11: %eloitte Petroleum Services: 21 /ar&) 2>11? 3; "raq elays 4t) enery au&tion to /ar&) ne't year: !euters: 1> O&tober 2>11?
6
)yro&arbon la= )a been approve?3;; But Oil /inister Abul areem al-uaibi reje&te t)is request urin a meetin in /ay 2>11: 3;< an t)e &ause of t)e eventual elays to t)e au&tion roun =ere te&)ni&al: a&&orin to t)e (!*?3<> T)e fourt) bi roun in&lue 4 international oil &ompanies "O!s7? 3<1 All &ompanies t)at qualifie for t)e previous t)ree rouns of li&ensin automati&ally qualifie for t)e fourt): =)et)er or not a &ontra&t =as sine in previous rouns ? 3<2 T)e +, oil firms Cess an %''on/obil =ere e'&lue from parti&ipatin in t)e fourt) li&ensin roun be&ause of &ontra&ts t)ey sine =it) t)e uristan Reional .overnment R.7 : 3<3 =)i&) t)e &entral overnment in Ba)a &onsiers illeal?3<4
Chan5es to model contract and criteria T)e &ontra&t moels use for t)e fourt) au&tion roun feature several &)anes &ompare to earlier rouns?3<5 T)e remuneration fee: or t)e amount t)e overnment pays to t)e &ompanies for ea&) barrel of oil prou&e :3<6 =as &al&ulate ifferently uner t)e ne= &ontra&ts? +ner t)e ne= formula &ompanies =ere not pai for oil t)ey pay sub&ontra&tors to prou&e? "nstea t)e "raqi overnment eu&ts t)e &ost of sub&ontra&ts from total prou&tion an t)en pays remuneration on t)e remainin prou&tion? "n ot)er =ors: if total prou&tion is 1 million barrels an t)e &ontra&tor )as spent t)e value of 3>>:>>> barrels on a sub&ontra&tor: t)e &ontra&tor =ill re&eive payment only for t)e remainin prou&tion: or >>:>>> barrels? T)is ne= formula =as aime at &uttin t)e &ost of sub&ontra&ts 3<5 an effe&tively ties &ompanies &ompensation to t)eir &ost-effi&ien&y?3< Anot)er &)ane from previous rouns =as t)e &riteria on =)i&) bis =ere jue? (revious rouns too# into a&&ount not only t)e remuneration fee ea&) bier =oul &)are: but also t)e amount of oil t)ey aree to prou&e? "n t)e fourt) roun: =it) many of t)e biin areas yet to be e'plore an =it) a&tual prou&tion t)erefore less &ertain: t)e remuneration fee =as t)e only &riterion? +ner t)e ne= eals: &ontra&tors also fa&e restri&t ions on t)eir ability to pump oil an as in orer to avoi over-supplyin t)e mar#et an over=)elmin "raqs unerevelope infrastru&ture?3<
Results T)e fourt) biin roun =as seen by many in t)e inustry as a failure: )avin faile 3;; T)e $ort)&omin %'ploration Blo&#s Bi Roun "n "raq "ssues $or !onsieration: (iddle )ast )conomic Survey 6 une 2>11?
3;< "raq /(s to As# (arliament to *elay 0e= %nery Roun: ,aa ,ays: Bloomberg 1 /ay 2>11? 3<> "raq elays 4t) enery au&tion to /ar&) ne't year: !euters: 1> O&tober 2>11? 3<1 $ourt) i&ensin Roun in "raq: results announ&e une 2>12: %eloitte: une 2>12? 3<2 "raq 4t) biin roun offers ne= opportunities for "O!s: )valuate )nergy 12 /ay 2>11? 3<3 "raqMs $ourt) Oil an .as i&ensin Roun: (ayer Bro&n: 1< ,eptember 2>12? 3<4 %''on /obile T)reatens "ts Oil "nterests "n ,out)ern "raq it) uris) *eal: A+ *e&s: 24 0ovember 2>11? 3<5 "raq re=or#s fees to bolster 4t) enery au&tion: !euters: 13 ,eptember 2>11? 3<6 !)ina initials Calfaya &ontra&t: /-% Asset and /rust: anuary 2>1>? 3< /inistry unveils tou) terms for 4t) bi roun: Ira' 0il !e1ort: 14 ,eptember 2>11?
to attra&t t)e e'pe&te interest? $ollo=in t)e biin roun t)e "raqi overnment bean to spea# of ma#in &)anes to its &ontra&ts? *eputy (rime /inister for %nery ,)a)ristani sai in late 2>12 t)at t)e plateau prou&t ion taret =oul be Isli)tly a justeI an t)e perio for rea&)in t)e plateau =as li#ely to be e'tene: ivin investors loner to re&oup t)eir investment an ma#e a profit?3<; T)e table belo= s)o=s t)e ma#e-up of t)e &onsortia =)i&) submitte bis: alon =it) aree per-barrel remuneration fees 3<<4>> 'loc
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3<; ill "raq be t)e ne't oil superpo=erH? Petroleum )conomist: 12 *e&ember 2>12? 3<< Results of $ourt) i&ensin Roun: Ira'i Petroleum Contracts and Licensing %irectorate: retrieve 5 *e&ember 2>12? 4>> $ourt) i&ensin Roun in "raq: results announ&e une 2>12: %eloitte: une 2>12?
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Iran.Iraq %napshot "ran an "raq )ave a lon an &ompli&ate )istory in =)i&) fa&tors of e&onomi&: reliious an military nature are often intert=ine? 4>1 T)e t=o &ountries fou)t t)e lonest &onventional =ar of t)e 2>t) &entury bet=een 1<;> an 1<;; =)en ,aam Cussein invae "ran after t)e "ranian "slami& Revolution?4>2 "raq an "ran evelope e'tensive e&onomi& ties follo=in t)e fall of ,aam Cussein in 2>>3: =it) trae bet=een t)e t=o states in&reasin tenfo l bet=een 2>>3 an 2>1>: a&&orin to "ranian offi&ials ? 4>3 A&&orin to t)e +nite ,tates "nstitute of (ea&e: Te)ran )as =iele substantial politi&al influen&e in "raq sin&e 2>>3 an en)an&e its soft po=er in t)e e&onomi&: reliious an informational omains? T)ey also &laim t)at "ran provie support to ,)ia insurent roups an militias =it)in "raqi borers?4>4 After visitin "ran in O&tober 2>1> an meetin =it) presient /a)mou A)meineja an Ayatolla) Ali )amenei: "raqi (rime /inister 0ouri al-/ali#i es&ribe t)e t=o &ountriesM relations)ip as Istratei&I: sayin I=e as# "ran an our nei)bors to support our re&onstru&tion an to boost e&onomi& an &ommer&ial &o-operation: =)i&) =ill )elp improve stability in our reion?I4>5
Iranian political influence in Iraq +(" reports spea# of "rans I&easeless effortsI to ominate its =estern nei)bour politi&ally an e&onomi&ally sin&e 2>>3? A&&orin to t)e reports: prior to +, =it)ra=al from "raq: "ran )a been =ain a &lanestine =ar aainst +, interests in "raq an poure billions of ollars into builin up a vast patronae an intellien&e net=or# in t)e &ountry: ivin t)em sinifi&ant politi&al influen&e? T)is tren =as sai to )ave a&&elerate sin&e t)e =it)ra=al of Ameri&an troops from "raq in *e&ember 2>11? 4>6 By unitin "raqs t)ree major ,)iite politi&al fa&tions: t)e "slami& ,upreme !oun&il of "raq ",!"7: t)e *a=a "slami& !all7 party an t)e ,arists: "ran )ope to translate a ,)iite emorap)i& majority into politi&al influen&e?4>4 4>1 "ran-"raq relations revisite enery &ooperation: /he ulf !esearch Unit: 21 $ebruary 2>11? 4>2 "ran an "raq a )istory of tension an &onfli&t: uardian: 2; uly 2>11? 4>3 "raq-"ran $orein Relations: A)I Iran /racker: 5 Auust 2>11? 4>4 "ran an "raq: United States Institute of Peace: retrieve 1 *e&ember 2>11? 4>5 "raqi (/ &ourts "ran urin visit: Al Ja#eera: 1< O&tober 2>1>? 4>6 O(%! "ran-"raq allian&e =ea#ens ,auis: UPI: 4 anuary 2>13?
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T)is influen&e )as been a&)ieve =it) mi'e su&&ess? Bet=een 2>>3-2>>5: "ran )elpe assemble a ,)ia "slamist blo&: t)e +nite "raqi Allian& e: en&ompassin all t)ree major ,)ia fa&tions? T)e allian&e =on 12; of t)e 25 seats in t)e *e&embe r 2>>5 "raqi parliamentary ele&tions: =it) senior *a=a leaer 0ouri al-/ali#i sele&te as (rime /inister? T)e provin&ial ele&tions in anuary 2>><: )o=ever: =ere seen by +, state orans to emonstrate t)e "raqi publi&s reje&tion of "rans politi&al influen&e? /ali#is nationalist ,tate of a= party mae some ains: but t)e ot)er t=o ,)ia politi&al fa&tions: t)e ",!" an t)e ,arists: suffere setba&#s? 4> .eore $riemann of +, lobal se&urity &onsultan&y ,tratfor sai t)at It)e possibility of "raq be&omin a puppet of "ran &annot be rule out: an t)is )as espe&ially =ie reional &onsequen&es?I4>;
Cross.border fields and ener5y cooperation Oil fiels in borer reions )ave lon been a point of vital interest for bot) "raq an "ran?4>< After e&aes of &ontentious relations =)ile ,aam Cussein =as in po=er: &ulminatin in t)e "ran-"raq =ar from 1<;>-1<;;: ,aams fall in 2>>3 provie a ne= opportunity for "ran an "raq to re-embar# on is&ussion of t)eir s)are frontier? 41> "raq an "ran )ave 23 joint oil fiels in borer reions: 411 in&luin t)e Bara fiel an t)e /ajnoon fiel: =)i&) eoloists &onsier to belon to t)e same stru&ture as "rans AEaean?412 T)e unitisation of t)ese frontier fiels: or areement bet=een entities on )o= to ivie eoloi&al stru&tures ivie by a borer: )as t)e potential to &reate bilateral tension: a&&orin to +, iplomati& &ables? /eetins bet=een "raqi an "ranian offi&ials in 2>>< )elpe neotiations on t)is issue ain some moment um: an as of /ar&) of t)at year t)e "raqi /inistry of Oil =as attemptin to evelop a moel unitisation areement to e'ploit t)e &ross-borer fiels? 412 "n /ay 2>1>: "raq an "ran aree on a /as ter *evelopment (lan /*(7 for t)e evelopment of five s)are: unname oilfiels in t)e borer reion? "ran an "raq )ave ifferent leal an &ontra&tual systems to evelop t)eir oil an as fiels: but t)e /*( &oul be a step to=ar brinin s)are fiel evelopment onto t)e aena: a&&orin to "ranian press sour&es?413 "raq an "ran )ave also in&rease &ooperation in t)e natural as se&tor? "n /ay 2>11 t)e t=o sies sine a provisional areement t)at =oul allo= "raq to import 25 million &ubi& meters m&m7 of "ranian natural as per ay an use it to po=er ele&tri& plants nort)-east of Ba)a?414 T)en in uly 2>11 "raq: "ran an ,yria sine a G1> billion eal in =)i&) t)e t)ree states aree toto&onstru&t a natural as pipeline from sout)ern "ran t)rou) "raq an e'tenin ,yriaN "ranian offi&ials )ave ini&ate 4> "ran-"raq Relations: US Congressional !esearch Service : 13 Auust 2>11? 4>; O(%! "ran-"raq allian&e =ea#ens ,auis: UPI: 4 anuary 2>13? 4>< "ran-"raq relations revisite enery &ooperation: /he ulf !esearch Unit: 21 $ebruary 2>11? 41> "raq-"ran $orein Relations: A)I Iran /racker: 5 Auust 2>11? 411 "ran: "raq Rea&) *eal on oint Oilfiels: Ira' Business *e&s: 1> anuary 2>11? 412 "raqi Oil /inistry 0eotiatin +nitiEation Of !ross-borer $iels: "ikileaks: 1 /ar&) 2>>1>? 414 "raq see#s "ranian as for po=er eneration: Bloomberg Business&eek: 23 /ay 2>11?
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t)at t)e pipeline =oul eventually e'ten to t)e /eiterranean ,ea t)rou) ebanon? +ner t)e eal: "raq =oul initially re&eive about 2> m&m of natural as per ay?415
4Reserve $ars4 and the OP+C quota issue Bot) &ountries are members of t)e OraniEation of (etroleum %'portin !ountries O(%!7 =)i&) supplies about 4> per&ent of t)e =orlMs oil? 416 %stimates of proven reserves are a sensitive issue amon O(%! member states: as reserves are a main &onsieration be)in t)e prou&tion quota ea&) member is entitle to?41 "raq an "ran )ave a )istory of &onfli&t over t)e O(%! quota? *urin t)e "ran-"raq =ar of t)e 1<;>s: for e'ample: "raq emane an output quota equal to "rans? As of late 2>12 "raq =as still e'empt from a quota as it re&overe from years of =ar? 41; After Ba)a sine lanmar# areements =it) international oil firms in 2>>< to ramati&ally raise its oil output: "raq an "ran bean a series of reserve =ars in =)i&) ea&) sie su&&essively revise up its proven oil reserve estimates? "n late 2>1>: "raq raise its proven &rue oil reserve estimates to 143?1 billion barrels: a rise of 25 per&ent? ee#s later "ran sai its o=n oil reserves no= stoo at 15>?31 billion barrels: a < per&ent rise over t)e previous estimate? 41 "f "raq su&&ees in its planne oil prou&tion in&rease from 2? million barrels per ay bp7 in *e&ember 2>1141< to to 12 million bp by 2>1? 42> t)e in&rease oil supply &oul &ause lobal oil pri&es to rop? O(%! &oul t)en be for&e to slas) ot)er member states quotas: t)ereby reu&in t)eir lobal mar#et s)are: in orer to a&&ommoate "raqs ne= &apa&ity an temper t)e rop in oil pri&es? "n t)is &ase: "ran &oul be t)e )arest )it: a&&orin to inustry analyst ,amuel !isEu#? Ce notes t)at "ran barely manae to brea# even fis&ally on oil pri&es at 2>1> levels: an permanent loss of its lobal mar#et s)are &oul be a )eavy blo=? 421 A&&orin to t)e International Business /imes: "ran an "raqs su&&essive &laims of )i)er reserves are a politi&ally motivate attempt to buil up a lon-term efense of t)eir respe&tive O(%! quotas? "ssam al!)alabi: a former "raqi Oil /inister: tol !euters ne=s aen&y t)at bot) "raqi an "ranian &laims of )i)er reserves =ere IunreliableI an unsubstantiate by proper evien&e?421 *espite t)is =arrin perio: +(" reporte in early 2>13 an emerin allian&e bet=ee n t)e t=o &ountries =it)in O(%!: )i)li)tin t)at an "ran-"raq areement: &reatin a stratei& Eone t)at prou&es at least one t)ir of t)e =orls oil supplies: &oul )ave immense eopoliti&al impli&ations?422 415 "ran in#s as pipeline eal =it) "raq an ,yria: A4P: 25 uly 2>11? 416 "ran: "raq Rea&) *eal on oint Oilfiels: Ira' Business *e&s: 1> anuary 2>11? 41 RA( "rans oil reserves revise up to 15>?31 billion barrels: Platts: 11 O&tober 2>1>? 41; "ran in&reases oil reserves estimate: passes "raq: %aily Star: 12 O&tober 2>1>? 41< Bloomber Die= )y "raqs Oil $lo=s ,lo=lyN ,pea#in /ore !learly at t)e $e: Bloomberg: 15 *e&ember 2>11? 42> "raqi Oil /inistry (repares 4t) i&ensin Roun: Ira'3Business *e&s 21 /ar&) 2>11? 421 /ile %astMs ne= oil =ar "ran: "raq loat over reserve siEe: International Business /imes: 14 O&tober 2>1>? 422 O(%! "ran-"raq allian&e =ea#ens ,auis: UPI: 4 anuary 2>13?
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%audi Arabia.Iraq %napshot A *e& .ork /imes arti&le in 2>> state t)at a eep rift )a emere bet=een ,unni-majority ,aui an its preominantly ,)iite nei)bour "raq sin&e t)e fall of t)e Baat)ist reime in 2>>3?423 "n fa&t: relations bet=een t)e t=o &ountries )ave os&illate bet=een s)are stratei& interest - ,aui Arabia supporte "raq urin its 1<;>-;; =ar =it) "ran - to military &onfrontation - ,aui Arabia )oste t)e +,-le response to ,aam Cusseins invasion of u=ait in 1<<> an &ontribute its o=n troops to t)e =ar effort? "n early 2>12 ,aui Arabia name its first Ambassaor to "raq in more t)an t=o e&aes: restorin normal iplomati& relations bet=een t)e t=o for t)e first time sin&e t)e invasion of u=ait? A&&orin to *e& .ork /imes t)is &oul sinal ,aui Arabias esire for a stroner presen& e in "raq in orer to buttress aains t)e influen&e of "ran in t)e &ountry? Relations )a be&ome parti&ularly straine sin&e t)e 2>>3 +,-le invasion of "raq: leain to a ,)iite-le overnment =)i&) &ultivate &loser relations =it) "ran an "ranian-supporte politi&al movements insie "raq?424 "n response to in&reasin ,aui interferen&e in internal "raqi politi&s: a lea#e +, iplomati& &able from 2>>< reveale t)at "raqi (rime /inister 0uri amal al-/ali#i =as so &on&erne about t)e melin t)at )e t)at as#e,auis +, (resient Obama to stop ,auis from intervenin? Ce &omplaine effort toBara&# rally t)e ,unnis =eret)e 425 )ei)tenin se&tarian tensions in t)e &ountry? $ears t)at "raq &oul reain its oil prou&tion quota =it)in t)e Oranisation of (etroleum %'portin !ountries O(%!7 )a also le to &ompli&ate reional ynami&s: sin&e furt)er ro=t) of t)e "raqi an "ranian7 e&onomies &oul =ea#en ,aui influen&e on reional eopoliti&s?426
OP+C rivalry Over 2>12 press reporte risin tensions =it)in O(%! bet=een t)e ,auis an t)e "raqis: a result of isareements over )o= mu&) oil to pump an =)at level to taret for lobal oil pri&es? !ompetin ambitions arise be&ause =)ile t)e ,auis =oul prefer )i) oil pri&es to fun +, G6>> billion in planne so&i al prorams: t)e "raqis are more fo&use on boostin prou&tion? %nery mar#ets strateist ulius al#er notes t)at Iultimately t)ere =ill nee to be an areement bet=een t)e t=o as to )o= to balan&e t)ese ambitions?I42 423 ,auisM Role in "raq $rustrates +?,? Offi&ials: *e& .ork /imes: 2 une 2>>? 424 ,auis (i&# $irst %nvoy to Ba)a in 2> 9ears: *e& .ork /imes: 21 $ebruary 2>12? 425 /elin 0ei)bors +ner&ut "raq ,tability: *e& .ork /imes: 5 *e&ember 2>1>? 426 +, =it)ra=al from "raq T)e #inom betraye: /he Sunday /imes: 31 uly 2>11? 42 "raqs Oil ,ure !oul T)reaten t)e ,auis: Bloomberg: 2> *e&ember 2>12?
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T)e risin profile of "raq is testin ,aui Arabias usual role as Is=in prou&erI: t)e &ountry =it)in t)e roup =it) enou) spare &apa&ity to tap in times of s)ortae an ri&) enou) to =it))ol =)en t)e mar#et is flooe? 42 An emerin allian&e bet=een former foes "ran an "raq in O(%! &oul also unermine ,aui Arabia: )istori &ally t)e oil &artels ominant for&e?42; Ba)a-base oil e'pert Ruba Cusari )a state t)at "raqs rise as an oil prou&er =oul ta#e Ian important balan&in a&t =it)in O(%! to preserve t)e &o)esion =it)in t)e oranisation =)ile at t)e same time satisfy "raqs )ue nees =)i&) are bier t)an any ot)er membersI: ain t)at I"raqs potential return as a major oil prou&er unoubtely &reates a &)allene for ,aui Arabia more t)an any ot)er member in O(%!?I42<
+#port infrastructure T)e "raq (ipeline t)rou) ,aui Arabia "(,A7 =as &onstru&te in t)e 1<;>s to transport "raqi oil to t)e ,aui Re ,ea port of /uajiE? 43> "t &ease to be use urin t)e "raqi invasion of u=ait in 1<<> an =as e'propriate by ,auis in une 2>>1 as &ompensation for ebts o=e by Ba)a? 431 T)ey &laime t)at "raq )a not pai transit fees for many years?432 Co=ever in une 2>12 t)e "(,A pipeline =as reopene by ,aui Arabia in a move to offset "ranian t)reats to &lose t)e ,traits of CormuE? T)is route =oul allo= t)e ,auis to bypass .ulf s)ippin lanes an transport its &rue from Re ,ea terminals in &ase of su&) a move?431 T)e follo=in mont) "raqi offi&ials &alle on ,aui Arabia to reverse a e&ision bannin "raq from e'portin &rue t)rou) t)e pipeline? .overnment spo#esman Ali al-*abba) sai t)at Riya) oes not )ave t)e ri)t to ban "raqi oil e'ports t)rou) t)e line a&&orin to international la=?432
8u$ait.Iraq %napshot As of mi-2>11: "raqi-u=aiti relations remaine politi&ally &)are an &ontentious: =it) isputes linerin over several &ontentious issues: in&luin t)e evelopment oil an as fiels near or &rossin t)e borerN areement on a lan an sea bounary: =)i&) )as been un&lear sin&e "raqs 1<<> invasion of u=aitN an areement to a pri&e 42; O(%! "ran-"raq allian&e =ea#ens ,auis:UPI: 4 anuary 2>13? 42< "raq to rival ,aui Arabia in O(%! oil sta#es Analysts: /he %aily Star Lebanon: 24 *e&ember 2>> (ipelines bypassin CormuE open: 4inancial /imes: 15 uly 2>12? 431 ,aui Arabia reopens oil pipeline =it) "raq to &ounter "ran CormuE t)rea:t Al Arabiya *e&s: 2< une 2>12? 432 "raq says ,aui Arabia s)oul allo= oil e'ports t)rou) east-=est pipeline: Platts: 1< uly 2>12?
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ta for reparations for ,aam Cussein-era rievan&es?433 Relations bet=een Ba)a an u=ait )ave mae substantial proress in some areas? u=ait re-opene its embassy in "raq in 2>>; after nearly 1< years of bro#en iplomati& relations bet=een t)e t=o &ountries: =)ile t)e !onsulate of "raq =as opene in u=ait in 2>1>? 0evert)eless: t)e outstanin problems &ontinue to lea to perioi& tensions in t)e bilateral relations)ip?434
Cross.border fields and territorial disputes ross(border fields One of t)e immeiate state reasons for "raqs invasion of u=ait in Auust 1<<> =as ,aam Cusseins alleation t)at u=ait =as rillin )oriEontally a&ross t)e aree international borers of t)e Rumaila oil fiel: effe&tively stealin "raqMs oil?435 As of late 2>12 t)ere remaine potential for isareement over a&&ess to fiels in borer Eones? T)e "raqi overnment announ&e in *e&ember 2>11 t)at t)ere =ere 1> oil fiels in frontier reions t)at still neee an international bounary ra=n bet=een t)em: an t)at oil =oul be e'tra&te from t)ese fiels only after finin joint me&)anisms bet=een t)e &ountries ?434 T)ere )as never been unitisation of t)ese fiels: meanin t)at t)e "raq an u=ait )ave never aree to an equitable ivision of t)e fiels oil base on a te&)ni&al assessment of )o= mu&) of t)e reservoirs lie uner ea&) &ountry?436 A )i) rate of prou&tion on one sie of t)e borer essentially su&#s t)e oil from t)e ot)er sie an amaes t)e reservoir: 43 an unitisation of t)ese fiels =oul preserve t)e life of t)e reservoirs an allo= bot) sies to re&over more of t)e resour&es: a&&orin to +, offi&ials in a lea#e iplomati& &able from 2>>> to e'amine all fiels an stru&tures aja&ent to an &rossin "raqs borers: in&luin t)ose =it) u=ait: 43; but t)e la&# of areement on t)is issue remains a sore point: a&&orin to t)e &ables?436
)erritorial disputes Amon t)e funamental borer issues bet=een "raq an u=ait is t)e latters esire for t)e "raqi overnment to formally re&onise t)e international borer as emar&ate by t)e +nite 0ations in 1<<3?43< /aritime issues are a major point of fri&tion bet=een t)e t=o sies? A&&ess to "raqs only sinifi&ant BasraMs =ater=ay: +mm Fasr:=)i&) is via"raq t)e s)ares narro==it) nort)ern (ersian .ulf an &ommer&ial t)rou) t)eport: )or at Abulla) u=ait? Over t)ree quarters of "raqs oil e'ports flo=e t)rou) pipelines in t)is area as of 433 +nresolve isputes mar "raq-u=ait relations: Ira' 0il !e1ort: 14 uly 2>11? 434 Oil fiels on "raqi-u=aiti borer a=ait emar&ation: A+ *e&s: 4 *e&ember 2>11? 435 T)e "nvasion of u=ait: /he 4iner /imes: retrieve 1; *e&ember 2>11? 436 "raq-#u=ait !ross-borer "ssues Affe&tin "raqs %&onomy: "ikileaks: 2 uly 2>>1>? 43; "raqi Oil /inistry 0eotiatin +nitiEation Of !ross-borer $iels: "ikileaks: 1 /ar&) 2>>11?
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mi-2>><: an "raqs efforts to strent)en its e&onomi& lifeline )ave been )ampere by t)e la&# of areement =it) u=ait on a maritime bounary?44> Tensions =ere raise =)en u=ait bean builin its G1?1 billion /ubara# al-abir port on Bubiyan "slan: just a fe= #ilometres from "raqMs planne G4?6 billion .ran al$a= terminal? T)e /ubara# port =ill ire&tly &ompe te an limit t)e traffi& flo= to al$a=: an &onestion &oul affe&t oil tan#ers sailin to "raqs nearby Basra an )or alAmaya oil terminals?441 As of late-2>11 t)ere =ere &on&erns in "raq t)at t)e /ubara# proje&t &oul &ause t)e &ountry to lose up to 6> per&ent of its maritime traffi& J mostly t)e larer &aro s)ips t)at alreay strule to o&# in +mm Fasr: t)e &ountryMs only eep-=ater port?442 T)ou) t)e /ubara# port offi&ially lies =it)in u=aiti borers: its lo&ation )as anere "raqi politi&ians: =or#ers an tribal leaers: =it) Transportation /inister Cai al-Ameri sayin in mi-2>11 t)at t)e /ubara# (ort Iemonstrates t)e &lear intention of u=ait to blo&# s)ippin lanes from "raqi ports?I 441 T)e &onstru&tion of t)e port )as prompte militant roups in sout)ern "raq to t)reaten to atta&# tarets insie u=ait? "n Auust 2>11 t)e "raqi ,)ia militia ataib CeEbolla) fire ro&#ets into u=ait: an =arne furt)er atta&#s =oul follo= if =or# on t)e port &ontinue? T)e leaer of "raqs .)atarna tribe: mean=)ile: =arne t)at if t)e u=aiti proje&t =ent a)ea: Lt)e &lans =ill ta#e t)e la= into t)eir o=n )ansK?442
Reparations for &''/ invasion u=ait &laims over G2> billion in reparations o=e from "raqs 1<<> invasion? "raq )as aree to &ontinue settin asie 5 per&ent of its oil sales for t)is purpose: but )as arue t)at t)e G2> billion fiure is e'&essive ?441 T)e +nite 0ations !)apter D"" san&tions on "raq: =)i&) )a supervise an enfor&e t)e &ompensation fun: e'pire on 3> une 2>11443 an t)e t=o sies faile to subsequently establis) a ne= me&)anism for t)e payments? A&&orin to Ira' 0il !e1ort : =it)out an areement u=ait &oul ta#e avantae of t)e absen&e of leal prote&tion for "raqs funs: =)i&) =ere remove =)en san&tions ene: an try to seiEe t)e funs in &ourt? 441 Remainin issues to be resolve before "raq &an be &onsiere for full relief from !)apter D"" san&tions: as of *e&ember 2>11: in&lue t)e restitution of stolen property from u=aits national ar&)ives:444 t)e ientifi&ation an repatriation of &itiEens =)o ie as a result of t)e o&&upation: 445 an an offi&ial statement by "raq t)at it =oul not atta&# u=ait in t)e future?444 u=aiti Airlines =as also o=e +, G1?2 billion by "raqi Airlines for planes an parts a 44> "raq-#u=ait !ross-borer "ssues Affe&tin "raqs %&onomy: "ikileaks: 2 uly 2>>11? 442 "raqis $ear "mpa&t of 0e= u=ait (ort: Institute for "ar 8 Peace !e1orting: < 0ovember 2>11? 443 $ull *etails of +0 ,tatement on "raq: Ira' Business *e&s: 15 *e&ember 2>1>? 444 $ran&e attentive to penin u=aiti emans: ures "raqi proress: %inar uru: 16 *e&ember 2>11? 445 u=ait sins oil pa&t =it) "raq: /he *ational: 22 *e&ember 2>1>?
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&ourt rule "raq )a stolen in t)e 1<<>s : 446 a ro= =)i&) =as part of t)e broaer ispute? Co=ever in O&tober 2>12 t)e t=o &ountries rea&)e an areement uner =)i&) "raq =oul pay u=ait G3>> million in &as) an invest G2>> million in a joint airline venture in return for u=ait liftin leal a&tions aainst "raqi Air=ays?44
9ur=ey.Iraq %napshot Ameri&as 0(R reporte in 2>1> t)at Tur#ey is vyin =it) "ran to be t)e most influential reional po=er in "raq an t)at 0ort)ern "raq )as be&ome t)e stain roun for Tur#eys bi for e&onomi& ominan&e? Reional spe&ialist .re .ause =ent so far as to say t)at It)e Tur#s )ave preominant influen&e of any forein po=er: even rivalin t)e +,: an t)ey )ave one it t)rou) a &lever an lo=-#ey stratey:I? T)is is sai to be in line =it) Tur#eys aspirations to be&ome an enery brie bet=een %urope an Asia?44; Tur#eys Trae /inistry estimates t)at t)e trae volume bet=een Tur#ey an "raq e'&eee +, G6 billion in 2>1>: up from only G<4> million in 2>>3: boostin "raq from Tur#eys tent) larest trae partner to t)e fift) larest? As of 2>11 t)ere =ere over 11 Tur#is) &ompanies =or#in on enery: ari&ulture an inustrial proje&ts in "raq? %nery feature bilateral relations bet=een t)e =as t=o amon &ountries? t)e t)irto rounisofa #ey li&ensin in of 2>1>: Tur#eys state-o=ne T(AO t)e "n &ompanies sin eals for as fiels in t)e sout): an Tur#is) &ompanies are also a&tive in t)e uris) oil se&tor?44< Co=ever relations soure over t)e &ourse of 2>12: partly as a result of t)e e'pulsion an senten&in to eat) of Di&e (resient Tariq al-Cas)emi an Tur#eys subsequen t refusal to )an )im over to "raqi aut)orities =)en )e too# refue in t)e &ountry? 45> An analyst at t)e !arneie %no=ment &ommente t)at ITur#ey in&reasinly is seen as nurturin t)e ,unnisI: an t)e sourin relations le to t)e mayor of Basra en&ourain &ompanies from ot)er &ountries to &ompete aainst Tur#is) &ompanies for &ontra&ts?451
6istorical relations $ollo=in orl ar "" Tur#ey =as a #ey ally of t)e est in t)e /ile %ast in orer to &ontain t)ose &ountries seen as ,oviet &lients: in&luin "raq? But urin t)e 1<<>s "raq =as Tur#eys lea train partner: =it) t)e Tur#is) port of !ey)an re&eivin oil 446 +nresolve isputes mar "raq-u=ait relations: Ira' 0il !e1ort: 14 uly 2>11? 44 u=ait &lears .ulf ar "raqi airline settlement: !euters: 23 O&tober 2>12? 44; Tur#ey $le'es %&onomi&: (oliti&al /us&le "n "raq: *P!: 31 *e&ember 2>1>? 44< Turun&: Casan: Tur#ey an "raq: 2>11? 45> Tariq al-Cas)emi Tur#ey =ill not )an over "raq D(: BBC: 11 ,eptember 2>12? 451 A 0e=ly Assertive Tur#ey *ominates Trae it) "raq: "all Street Journal: 2 Auust 2>12?
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by pipelines from "raqs nort)ern fiels? Co=ever +0 san&tions on "raq too# t)eir toll on "raqi-Tur#is) trae relations? ,in&e t)e 2>>3 invasion an t)e eep stru&tural &)anes it triere in t)e /ile %ast: &ontemporary "raq )as been t)e subje&t of &ompetin po=er plays bet=een ,aui Arabia: "ran an: to a lesser e'tent: Tur#ey? Tur#ey mean=)ile aine international a&&laim for pursuin a Eero problems =it) t)e nei)bours poli&y: a poli&y nurturin positive ties =it) nei)bourin &ountries? 452 Co=ever t)e &risis in nei)bourin ,yria from 2>11 on=ars: alon =it) its &loser relations bet=een An#ara an "raqs ,unnis an urs: raise oubts about t)e Eero problems poli&y? (rime /inister al-/ali#i =ent so far as to &laim t)at Tur#ey =as stirrin up et)ni& ivisions in t)e &ountry?453
9ur=ish position on 8urdish Issue Tur#eys attitue to=ars t)e uristan Reional .overnment R.7 )as s)ifte sin&e 2>>5? *espite in&reasinly stron e&onomi& ties: bilateral enaement bet=een "raq an Tur#ey )as been &onstraine in t)e past by Tur#eys reje&tion of risin uris) autonomy an t)e presen&e of ( uristan or#ers (arty7 bases in nort)ern "raq: a&&orin to O'for +niversitys Casan Turun&?452 Co=ever Tur#ey ominates t)e e&onomy of t)e R. reion? T)e R. estimates t)at in 2>11 trae bet=een uristan an Tur#ey totalle +, G; billion 454 an Tur#is) imports a&&ount for an estimate ;> per&ent of foo an &lot)es sol? (rivate Tur#is) &ompanies )ave mae sinifi&ant investments in t)e reion an Tur#is) enery &ompanies su&) as (et-Oil an .enel %nery )ave =on bis to evelop oil an as fiels in nort)ern "raq?455 Ira' 0il !e1ort reporte in 0ovember 2>12 t)at a ne= Tur#is) state oil an as &ompany =as neotiatin =it) t)e uris) aut)orities to ta#e sta#es in several e'ploration blo&#s?456 Turun& &omments t)at Tur#ey atta&)es a reat eal of importan&e to "raqs stability an territorial interity an sees t)ose matters as &ru&ial to its o=n se&urity an stability? "n parti&ular t)e future status of et)ni&ally mi'e ir#u#: )ome to some of "raqs larest oil reserves: is of reat &on&ern to t)e Tur#s? A&&orin to )is analysis Tur#eys prin&ipal an'iety is t)at t)e oil ri&)es of ir#u# =ill only en&ourae t)e R. to see# reater autonomy: =)i&) &oul spill over an spar# unrest ami Tur#eys o=n uris) population? "n )is =ors: enery: e&onomy an infrastru&ture form t)e &ru' of Tur#is) involvement in "raq?452 A&&orin to t)e )conomist in 2>><: t)e +, en&ourae t)e t=o sies to rebuil relations an +, offi&ials telep)one Tur#is) presient Abu lla) .ul to praise It)e ro= in Tur#is)-"raqi relations)ipI: in t)e )ope t)at friens)ip =it) Tur#ey =oul enable 452 Tur#ey an "raq: Academia: 2>11? 453 (roblems =it) t)e nei)bours: )conomist: 2; anuary 2>12? 454 uristan eyes major role in Tur#is) as mar#et: Petroleum )conomist: 13 *e&ember 2>12? 455 %rasin t)e $rontierTur#eyMs Trae an "nvestment in "raqi uristan: /ufts lobal Leadershi1: 2>11? 456 Tur#ey preparin major uristan oil entry: Ira' 0il !e1ort: 21 /ay 2>12?
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"raqs urs to e'port t)eir oil an as an &)e&# "rans influen&e in t)e reion? 45 .enel %nerys Tony Cay=ar believe s t)at by 2>2> uris) as e'ports &oul meet a fift) of Tur#eys fuel import nees ?45; "n April 2>12 t)e R. )alte e'ports to Tur#ey follo=in a ispute =it) Ba)a: )o=ever in t)e same year uristan an Tur#ey )el is&ussions over t)e &onstru&tion of an e'port pipeline =)i&) =oul bypass t)e &entral overnments &ontrol? "n a politi&ally &ontroversial move: t)e urs also bean to e'port &rue by tru&# over t)e borer to Tur#ey in uly 2>12: in efian&e of Ba)a?45<
+#port infrastructure
Tur#eys epenen&e on enery imports: parti&ularly oil an as: )as ro=n fast as a &onsequen&e of )i) e&onomi& ro=t)? "n 2>11 it &onsume about >>:>>> barrels of oil a ay bp7 but prou&e only 5>:>>> bp 46>? Tur#ey is also lo&ate eorap)i&ally in &lose pro'imity to aroun 2 per&ent of t)e =orls proven as reserves an 3 per&ent of oil reserves? 461 A&&orin to )ale Al,)ari#) of Tufts +niversity: Tur#eys rulin usti&e an *evelopment (arty A(7 see#s to be&ome a reional enery transit point an to iversify t)e sour&e of its oil an as imports? A&&orin to )is analysis: Tur#ey is a eorap)i&ally pivotal t)ou) enery-poor nation surroune by enery-ri&) nei)bors: an )opes to in&rease its =ei)t in t)e international &ommunity t)rou) pipeline proje&ts? "n li)t of t)is: Tur#ey is sai to be eaerly sear&)in for opportunities in "raqi oil an as?462 T)e ve)i&le for "raqi oil e'ports to Tur#ey is t)e ir#u#-!ey)an oil pipeline: one of t)e &ountrys most sinifi&ant operational e'port lin#s? 463 But outsie of t)is net=or#: t)e li#eliest route for as to be transporte ire&tly from uristan =oul ta#e uris) as to $is) )abur: &lose to t)e Tur#is) borer: from =)ere Tur#ey &oul buil t)e infrastru&ture to ta#e supplies to t)e omesti& mar#et? 45; "raqi as is also of some importan&e to Tur#ey as a possible sour&e of as for t)e ,out)ern !orrior pipeline proje&t to supply as to %urope? 464 T)e Petroleum )conomist reporte in ,eptember 2>11 t)at "raq =as loo#in to e'port as foun in t)e blo&#s on offer in its fourt) li&ensin roun to %urope by pipeline t)rou) Tur#ey? *eputy Oil /inister Al-,)amma sai t)at as e'ports =oul only bein if suffi&ient as supplies =ere foun an t)at asso&iate as =oul not be e'porte by pipeline: as supplies are not as stable as free as? Ce also &ommente t)at "raq i not nee t)e 0abu&&o pipeline to eliver as to %urope?465 45 An unusual ne= friens)ip: )conomist, 1< $ebruary 2>>12? 45< Tur#eyMs oil iploma&y =it) "raqi urs: 4inancial /imes, 3> uly 2>12? 46> Tur#ey - +?,? %nery "nformation Aministration: retrieve anuary <: 2>13? 461 Tur#eys %nery ,tratey: /urkish (inistry of 4oreign Affairs: anuary 2>>11? 463 Oil %'port Routes - "raq oo#s for a ay Out: Petroleum )conomist: 14 *e&ember 2>1>? 464 0ort)ern "raq loo#s to e'port as via Tur#ey an 0abu&&o: Hurriyet %aily *e&s: 5 uly 2>1>? 465 "raq %yes %+ .as %'ports T)rou) Tur#ey: Petroleum )conomist: ; ,eptember 2>11?
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Common environmental concerns "raq fa&es t)e t)reat of esertifi&ation at an averae rate of >?5 per&ent a year? T)is esertifi&ation is also e'pe&te to impa&t Tur#ey? $or e'ample: in Tur#eys onya basin aroun ;> per&ent of =ater epletion )as o&&urre over t)e last e&ae an t)e basin fa&es t)e prospe&t of &omplete esertifi&ation by 2>3>? 466 T)e reional =ater &risis is t)ou)t to be influen&e sinifi&antly by e'ploration a&tivities in t)e oil se&tor?46 A&&orin to /u)amma $ars:of.eneral-*ire&tor uristanMs "rriation an ater epartment 6<6:>>>Amin )e&tares "raqi ari&ulturalof lan are no= fa&in rou)t 46; be&ause of Tur#is) ams ? T)ere is also some isareemen t over national allo&ati on of =ater from t)e %up)rates an Tiris rivers: =it) "raq as#in for 65 per&ent of t)e =ater potential of t)e %up)rates an <2 per&ent of t)e Tiris: an Tur#ey plannin to use aroun 52 per&ent of t)e %up)rates an 14?1 per&ent of t)e Tiris? A&&orin to Turun&: fe= &ommentators believe t)at =ater alone &an be&ome t)e &ause of =ar bet=een Tur#ey an "raqN nevert)eless its estabiliEin impa&t is apparent? 466 .re /uttit of &ain roup (latform also )i)li)ts t)at reater reional iploma&y =it) nei)bourin Tur#ey is neee rearin t)eir &onstru&tion of upstream ams: in orer to ma#e proress on t)e =ater &risis?46<
9he 4%outhern Corridor4 0as 9ransit Route to +urope Overvie$ %urope )as for many years relie on Russian natural as imports to supply its enery nees: but parti&ularly follo=in t)e ispute over pri&es bet=een Russian .aEprom an transit &ountry +#raine in 2>><: 4>t)ere )ave been moves to iversify t)e supply routes to estern %urope?41 O=in to its environmental benefits an t)e ro=in unpopularity of nu&lear po=er: natural as is be&omin a preferre fuel in t)e %uropean enery mar#et? .ermany in parti&ular: a major &onsumer of Russian as: is boun to rely more on natural as as it plans to p)ase out nu&lea 2>22? %+ &ubi& offi&ials noteb&m7 in 2>11 %uropeMs an nual as &onsumption =asr po=er arounby5>> billion metres pert)at year: of =)i&) 42 125 b&m per year =as from Russia ? T)e %+s efforts to establis) a sout)ern as &or 466 Tur#ey an "raq: Academia: 2>11? 46 "raq may suffer &lean =ater &risis in 15-2> years: !euters: 21 ,eptember 2>11? 46; ater &onfli&t t)reatens reional relations: *i'ash: 5 /ay 2>>12? 4> Russia s)uts off as to +#raine: BBC: 1 anuary 2>>> /ay 2>12?
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rior are part of a enery supply iversifi&ation proje&t aime at freein %urope from its epenen&e on Russian as?43 !ommentin on t)e eopoliti&al impli&ations of t)e pipeline politi&s in %urope: inustry &ommentator (epe %s&obar asserts t)at t)e ne= .reat .ame of t)e t=enty first &entury is over enery an t)at it is bein playe out on t)e immense &)essboar &alle %urasia? "n its most simplifie form it )as been 0abu&&o a pipeline proje&t supporte by t)e +,7 versus ,out) ,tream supporte by Russia7: an revolves aroun %uropean &ountries tryin to &ir&umvent Russia in se&urin enery supplies? A&&orin to %s&obar: 0abu&&o an t)e Ba#u-Tbilisi-!ey)an pipeline )ave never been seen simply as infrastru&ture proje&ts but as a &reature of as)inton? 44
%ource of supplies .as volumes for 0abu&&o an ot)er pipelines &oul &ome from a variety of prou&in &ountries: in&luin AEerbaijan: Tur#menistan an aEa#)stan as =ell as "ran: "raq an potentially ot)er (ersian .ulf prou&er s? A report by t)e O'for "nstitute for %n ery ,tuies sueste t)at politi&al instability in t)e /ile %ast )as reu&e t)e options to !entral Asian suppliers ?45 Co=ever Tur#is) %nery an 0atural Resour&es /inister Taner 9iliE sai in late 2>12 t)at Tur#ey is reay to a&t as a as supply &orrior from nort)ern "raq to %urope alon t)e &orrior? 46 ,upplies from Tur#menistan an aEa#)stan =oul rely on t)e &onstru&tion of t)e propose Trans-!aspian (ipeline T!(7?45
+uropean pipeline selection process Belo= are brief outlines of t)e t=o pipeline proje&ts still on t)e table for transportin as from AEerbaijan an !entral Asia to %urope as of uly 2>12? T)e ,out)-%ast %urope (ipeline ,%%(7 proje&t =as t)e final option to be eliminate from t)e sele&tion pro&ess: =)en in une 2>12 t)e &onsortium operatin t)e ,)a) *eniE fiel preferre t)e 0abu&&o est option?4 ,%%(: a lo=er &ost an lo=er &apa&ity e'port option e'tenin from Bularia to !entral %urope: =as roppe by its initial ba&#ers B(?4;
'abucco *'abucco West+ T)e 0abu&&o proje&t =as initiate in 2>>2 an =as a&tively promote by t)e %+ uner its Trans-%uropean %nery 0et=or#s initiative? "t =as initially proje&te to &arry ;-13 b&m of as per year: t)e volumes risin to 31 b&m per annum by 2>2>? "n /ay 2>>; t)e 43 Trans-!aspian pipeline tal#s proressin: UPI: 16 /ar&) 2>12? 44 umpin a&# Deri: "ts a .as: .as: .as "ran an t)e (ipelineistan Opera: /ruthout: 1 O&tober 2>>>;? 46 TA0A( proje&t to a&&elerate 0abu&&o proje&t implementation: *atural as )uro1e: 26 *e&ember 2>12? 4 0abu&&o est an TA( o )ea to )ea: Petroleum )conomist: 2 uly 2>12? 4; B(-le &onsortium rules out ,%%( pipeline: 4inancial /imes9, :> June :;<:-
<>
&onstru&tion &ost of t)e 0abu&&o pipeline =as estimate at Y?< billion G12?3 billion7?4< T)e initial proje&t =as &on&eive to run 3:;<3 #ilometres #m7 from t)e .eorian-Tur#is) borer to Baumarten in Austria? 4;> )ereas 0abu&&o est is a revise version of t)e oriinal 0abu&&o pipeline: an =as &)osen by t)e B(-le &onsortium operatin t)e ,)a) *eniE .as $iel as t)e nort)ern route &aniate for t)e pipeline: to &ompete )ea-to-)ea =it) t)e =estern route option: t)e Trans-Ariati& (ipeline?4;1 A&&orin to t)e Petroleum )conomist: t)e &onsortiums e&ision to opt for 0abu&&o est a boost an to t)e proje&t: in its 4 oriinal form =as unable to attra&t &ient ave as supplies eeme too=)i&) e'pensive? Over its lifetime t)e proje&t fa&esuffisu&) repeate elays t)at .er)ar Roiss: !%O of O/D &ommente t)at t)e pipeline L=ill be pronoun&e ea 1>> times: but it =ill be alive aain 1>1 times?K 4;> T)e revise route =oul instea bein at t)e Bularian-Tur#is) borer an run 1:312 #ilometres to Baumarten: &arryin 1> b&m per year? T)e sement of t)e oriinal 0abu&&o route &rossin Tur#ey =as mae unne&essary =)en AEerbaijan an Tur#ey aree in late 2>11 to buil t)e Trans-Anatolian (ipeline TA.(TA0A(7? (artners in t)e proje&t in&lue Tur#is) BOTA,: Bularian %nery Colin: Cunarian $.,@: Austrian O/D: .ermany R% an Romanian TransaE?4;2
)rans Adriatic !ipeline *)A!+ T)e TA( propose to ta#e 1> billion &ubi& metre s b&m7 per year of natural as a&ross .ree&e an Albania: &ontinuin unerneat) t)e Ariati& sea to t)e )eel of "talys boot: its ba&#ers &laimin t)at t)ese volumes of as &oul later be ouble? T)e TA( &onsortium &omprises of .erman %?O0 15 per&ent sta#e7: ,=iss %. 42?5 per&ent7 an 0or =eian ,tatoil 42?5 per&ent7? "n $ebruary 2>12 t)e ,)a) *eniE &onsortium ini&ate a preferen&e for t)e TA( over t)e rival "nter&onne&tor .ree&e-Tur#ey-"taly "T."7 option as t)e =estern-route &aniate a)ea of ma#in a final e&ision?4;2 A&&orin to t)e 4inancial /imes ,tatoil an ot)er ba#ers of t)e TA( route )ave ure t)at &ommer&ial e&isions s)oul overn t)e final e&ision: base on a neutral stan&e by t)e %+: espite )istori&al %+ support for 0abu&&o? 4;3
North and %outh %tream Russias ans=er to t)e 0abu&&o an t)e ot)er %+-ba&#e options is t)e ,out) ,tream pipeline: a +, G15 billion proje&t stret&)in for 1:2>> #ilometres uner t)e Bla&# ,ea from Russia to Bularia? T)e pipeline is s&)eule to be &omplete in 2>15: an from Bularia one bran&) =oul run sout) t)rou) .ree&e to ,out)ern "taly: =)ile t)e ot)4< aEa#)stanMs .as %'port /ar#ets an %'port Routes: 05ford Institute for )nergy Studies : 0ovember 2>>;? 4;> 0abu&&o est ,ele&te As (otentaial Route $or AEeri .as: Bloomberg: 2; une 2>12? 4;1 0abu&&o est in pipeline final: Asia /imes 0nline: uly 2>12? 4;2 0abu&&o est in pipeline final: Asia /imes 0nline: uly 2>12? 4;3 B(-le &onsortium rules out ,%%( pipeline: 4inancial /imes9, :> June :;<:-
<1
er =oul run nort) t)rou) ,iberia an Cunary to=ars nort)ern "taly? ,tream =ill be &apable of &arryin 63 billion &ubi& metres b&m7 per year? 4;5
4;4
0or
T)e G
4;4 umpin a&# Deri: "ts a .as: .as: .as "ran an t)e (ipelineistan Opera: /ruthout: 1 O&tober 2>> /ay 2>12?
<2
Operatin5 +nvironment in Iraq %outhern Iraq Bet=een 2>>; an early 2>1> "raq a=are a oEen &ontra&ts to international oil &ompanies "O!s7: in&luin Royal *ut&) ,)ell: B(: %''on/obil: u#oil an !0(! of !)ina to evelop t)e reserves in t)e sout) of t)e &ountry? A&&orin to /aria van er Coeven of t)e "nternational %nery Aen&y "%A7: t)e prin&ipal obsta&le for &ompanies operatin "raq are t)e leal questions raise by t)e overnments failure to pass a )yro&arbons la= to reulate t)e inustry? Ot)er obsta&les are an immature oil fiel servi&es inustry: &omple' eoloy: 4;6 infrastru&ture bottlene&#s an onoin se&urity &on&erns? 4; !orruption is also an obsta&le to operations in 2>12: Transparen&y "nternational ran#e "raq as only t)e 15t) most transparent &ountry in t)e =orl7? $rom t)e perspe&tive of "O!s: t)e te&)ni&al servi&e &ontra&ts offere in t)e sout) are in&reasinly seen as less attra&tive t)an t)e prou&tion s)arin &ontra&ts (,!s7 offere by t)e R. to t)e nort)? %nis !%O: for one: &ommente in 2>12 t)at Iour arenaline rus) no= is not =)at it =as =)en =e entere "raq? "raq is more &omple' t)an =e t)ou)t?I T)e Petroleum )conomists *ere# Bro=er sueste t)at t)e Te&)ni&al ,ervi&e Areements T,As7 may prove more attra&tiv e to national oil &ompanies 0O!s7: parti&ularly t)ose from Asia: =)i&) see# t)e stability of a per-barrel arranement rat)er t)an t)e lu&rative but )i)er ris# prou&tion s)arin areements (,As7 offere else=)ere?4;; )ile se&urity &onitions )ave improve sin&e t)e ays of t)e &ivil =ar: o&&asional atta&#s remin &ompanies t)at t)ey &oul be&ome tarets? Bombins of pipelines an ot)er fa&ilities )ave subsie but are still a feature of t)e se&urity environment? "n early 2>1> a note =as foun in a is&overe =eapons &a&)e in Basra =)i&) t)reatene forein oil &ompanies: an in 2>12 four employees of At)ens-base !onsoliate !ontra&tors !ompany !!!7 =ere #inappe in Basra?4;< %ven on&e se&urity issues are resolve: lo&al issues presente by &ommunities t)e oilfiels )ave presente problems: a&&orin to se&urityaroun firm !ontrol Ris#s?4;;livin in poverty
4;6 As uristan oil booms: eal-ma#in a&&elerates: Ira' 0il !e1ort: 3 *e&ember 2>12? 4; "%A prei&ts boom in "raq oil prou&tion: 4inancial /imes: < O&tober 2>12? 4;; ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12? 4;< Oil =or#ers #inappe in Basra: Ira' 0il !e1ort: 1 /ay 2>12?
<3
Iraqi 8urdistan T)e first &ompanies to invest in t)e semi-autonomous uristan reion in t)e nort) of "raq =ere smaller: less =ell-#no=n outfits su&) as 0or=eian *0O an Tur#is) (etOil? T)ey =ere follo=e by mi-tier majors su&) as /arat)on an Cess: an over t)e &ourse of 2>12 by super-majors %''on/obil: Total: !)evron an .aEprom?4<> Co=ever Ba)a &onsiers t)e eals sine ire&tly =it) t)e uristan Reional .overnment R.7 as illeal an t)e moves )ave le to onoin isputes bet=een t)e &entre an t)e perip)ery?4<1 A senior R. offi&ial estimate t)at in 2>12 t)ere =ere aroun 45 to 5> &ontra&tors operatin in t)e reion: but a&&orin to Ira' 0il !e1ort t)e uristan reion =itnesse a flurry of merers an a&quisitions in 2>12: a pro&ess a&tively en&ourae by 0atural Resour&es /inister As)ti Ca=rami? T)is may result in a smaller number of players bein involve in t)e &omin years as t)e remainin blo&#s are snappe up an smaller &ompanies strule to raise t)e finan&in require an et squeeEe out?4<> )ile reserves are smaller in uristan t)an in t)e sout): many investors are attra&te by ot)er favourable &onitions? Asie from t)e more attra&tive &ontra&t reime use by t)e R.: fe=er elays are e'perien&e at &ustoms for imports of parts an materials t)an oin t)rou) Basra? T)is )as resulte in many &ompanies operatin in t)e sout) importin t)eir materials via uristan: a&&orin to t)e Petroleum )conom3 ist? (o=er supplies an ot)er infrastru&ture in uristan is also superior: a&&orin to t)e "raq %nery "nstitute: an se&urity &onitions are more favourable? 4<2
,P Type Trae as
(ubli&imite!ompany ,%B(
$oune
1<>< as Anlo-(ersian Oil7: 1<54 as Britis) (etroleum7
Ceaquarters
onon:+
ey people
!arl-Cenri& ,vanber !)airman7: Bob *uley !%O7
Revenue
+,G3;6?5billion2>117
(rofit
+,G26?1billion2>117
Total assets
+, G2<3?1 billion en 2>117
4<3 4<3 4<3
4<> As uristan oil booms: eal-ma#in a&&elerates: Ira' 0il !e1ort: 3 *e&ember 2>12? 4<1 "%A prei&ts boom in "raq oil prou&tion: 4inancial /imes: < O&tober 2>12? 4<2 Oil =or#ers #inappe in Basra: Ira' 0il !e1ort: 1 /ay 2>12? 4<3 Annual Reportin 2>11: BP: 2>12?
<4
Total equity
+, G112?5 billion en 2>117
%mployees
;3:4>>en2>11 74<4
ebsite
===?bp?&om
4<3
0lobal snapshot B( is a Britis) lobal enery &ompany )eaquartere in onon: ran#e in 2>1> by (latts as t)e se&on larest enery &ompany in t)e =orl base on finan&ial performan&e: 2>>;?4<5trailin %''on/obil? "t improve its position from fourt) in t)e ran#ins in B( bean business as Anlo-(ersian Oil in 1<><: 4<6 =)i&) e'porte its first &aro of oil in /ar&) 1<12 from Abaan in "ran? $rom 1<14 until t)e 1<;>s: t)e Britis) overnment =ere t)e &ompanys prin&ipal sto&#)oler an sin&e t)en B( )ave a&quire t)e ,tanar Oil !ompany in 1<;: mere =it) +, &ompany Amo&o in 1<<; an a&quire Atlanti& Ri&)fiel an Burma) !astrolan in 2>>>?4< At t)e en of 2>11 B( )a total proven lobal reserves of 1?5 billion barrels of oil equivalent boe7 an prou&e 2?35 million barrels of oil per ay bp7 t)rou) t)e year?4<4 Co=ever: B( )as sin&e 2>1> been ealin =it) t)e aftermat) of t)e /a&ono oil spill in t)e .ulf of /e'i&o: t)e +,s larest ever oil isaster? T)e *eep=ater CoriEon oil =ell e'plosion 11 =or#ers is estimate affe&te aroun 1:>>>t)e miles of s)oreline: #ille 2>> miles of =)i&)an =ere t)ou)t totobe)ave )eavily oile? Co=ever: e'a&t 4<; e'tent of t)e spill )as been ispute by ifferent parties? T)e &ompany mae t)e e&ision to sell none-&ore assets in orer to pay for t)e &lean-up operation an to &ompensate vi&tims? "n O&tober 2>11: B( finally re&eive aut)or isation to resume rillin at t)e site4<< an in 0ovember 2>12 t)e &ompany settle all &laims =it) t)e +, *epartment of usti&e an t)e ,e&urities an %'&)ane !ommission for G4?5 billion?5>>
,P operations in Iraq #istory B(s relations)ip =it) "raq ates ba&# as far as 1<2: =)en alon =it) %''on: Total an ,)ell: it )a a 23?5 per&ent s)are in t)e "raq (etroleum !ompany "(!7? 5>1 $ollo=in 4<4 B( at a lan&e: BP: retrieve 1 *e&ember 2>12? 4<5 (latts Top 25> .lobal %nery !ompany Ran#ins: Platts )nergy: retrieve 25 O&tober 2>11? 4<6 Business T)e !ompany $ile $rom Anlo-(ersian Oil to B( Amo&o: BBC *e&s: 11 Auust 1<<;? 4< B( (!: History-com: retrieve 25 O&tober 2>11? 4<; *eep=ater CoriEon an t)e .ulf oil spill - t)e #ey questions ans=ere: /he uardian: 2> April 2>11? 4<< Oil iant B( rea&)es turnin point: BBC *e&s: 25 O&tober 2>11? 5>> Re&or G4B ,ettlement $or B( On !riminal !)ares Rearin /a&ono A&&ient: 4orbes: 15 0ovember 2>12? 5>1 Oil .iants Return to "raq: /he Inde1endent: $riay: 2> une 2>>;?
<5
&ontra&ts sine in t)e 1<3>s: t)e "(! aine full &ontrol over "raqs oil5>2 an t)us #ept "raqs oil reserves uner forein &ontrol for more t)an 4> years?5>1 B( &ontinue =or#in in "raq for many years an )elpe to is&over t)e super iant fiel Rumaila: lo&ate 32 #ilometers from t)e u=aiti borer: in 1<535>3 before &losin its representative offi&e t)ere ue to t)e =ar =it) u=ait in 1<<> 5>4? B( restarte =or# in "raq: more spe&ifi&ally on Rumaila: in April 2>>5 after sinin a servi&e areement =it) "raqs Oil /inistry?5>5?
Activities and contracts Rumaila
B( =as t)e first oil major to se&ure a lon-term &ontra&t in post-2>>3 "raq? 5>65> "n a venture =it) !)ina 0ational (etroleum !ompany !0(!7: B( mae a su&&essful bi for a servi&e &ontra&t in t)e Rumaila oil fiel: "raqMs larest: in t)e first post=ar &ontra&t li&ensin roun in une 2>>; B( an !0(! =on t)e bi after areein to &ut t)eir requeste remuneration fee from +, G3?<< per barrel to G2 per barrel? 5>6 B( )ols a 3; per&ent sta#e in t)e venture: =)ile !0(! )ols 3 per&ent an "raq ta#es t)e remain in 25 per&ent?5>< B( =rote in its 2>>< Annual Revie= t)at it intene to in&rease prou&tion in Rumaila from appro'imately 1 million barrels per ay bp7 to 2?;5 million bp 51> an toet)er =it) !0(! plans to spen aroun G15 billion at Rumaila 511 by 2>1: a&&orin to t)e 512
%efence !e1ort =ebsite?
t)e entoofrill /ar&) 2>1> &ompany 513 announ&e t)at it )a a=are G5>> million in At &ontra&ts =ells at t)e Rumaila an over t)e &ourse of 2>1>: B( an !0(! rille 41 out of t)e > =ells oriinally planne? 514 B(Ms former )ea of prou&tion Any "nlis sueste in April 2>1> t)at t)e fiel may be&ome t)e =orlMs se&on-larest by 2>15 ?511 T)e "all Street Journal =rote in /ar&) 2>1> t)at if su&&essful: t)e effort to e'pan prou&tion at Rumaila: alon =it) ot)er fiels in "raqs sout): &oul mar# one of t)e larest e'pansions of oil prou&tion ever a&)ieve?513 /he uardian ne=spaper in uly 2>11 reporte t)at B( )a se&retly reneotiate its ser5>2 B( J ,tealin "raqMs $utur : Shareholder Briefing by PLA/40!(, April 2>>;? 5>3 Rebirt) of Rumail : 08 *e5t eneration (aga#ine: $ebruary 2>1> eition? 5>4 B(-e !onsortium ins "raq Oil *eal: CBS *e&s: 1 O&tober: 2>>< 5>5 B( in Rumaila: from spee&) by /i&)ael ! *aly: B( Cea of %'ploration: on 16 $ebruary 2>1>? 5>6 B(s "raq oil eal fa&es &ourt battle: 23 anuary 2>1>? 5> B( an !0(! sin first major oil eal =it) "raq in almost 4> years: /he *ational, ; O&tober 2>>; "raq: Oil an .as eislation: Revenue ,)arin: an +?,? (oli&y: (iddle )astern Affairs, 3 0ovember 2>><B(-!)ina 0ational .roup ,ins (a&t for "raq Oil $iel : "all Street Journal: 4 0ovember 2>> B(s Annual Revie=: BP, 2>>1>? 512 .ro=in Britis) investment in "raq t)reatene by Russian &ompetition: %efence !e1ort, 2 0ovember 2>12? 513 B( Beins Bi (us) to Revive "raqs Oil : "all Street Journal, 31 /ar&) 2>1>? 514 (etrofa& D snas Rumaila job: 0il 0nline: 2< une 2>11?
<6
vi&e &ontra&t for t)e Rumaila fiel: in =)i&) t)e Ba)a overnment aree to pay t)e firm even =)en Rumaila oil is not bein prou&e? +ner t)e ne= terms B( =oul be immeiately &ompensate for &ivil isruption or overnment e&isions to &ut pro u&tion? T)e story quote &riti&s =)o see t)is as a major step a=ay from t)e oriinal terms of t)e eal sine in t)e summer of 2>><: in&luin aut)or .re /uttitt: =)o &alle t)e reneotiation Ia ba&#room eal t)at ave B( a stranle)ol on t)e "raqi e&onomy: an even influen&e over t)e e&isions of O(%!?I515 Kirkuk
!euters reporte in April 2>12 t)at "raqs &entral overnment in Ba)a =ante B( to
revive t)e aein ir#u# oil fiel in nort)ern "raq: =)i&) is sufferin from massive prou&tion e&lines? !euters &ite inustry sour&es sayin t)at t)e overnment =as see#in to strent)en its position in a ispute =it) semi-au tonomous uristan over o=ners)ip of nort)ern "raqi fiels: an t)at brinin B( into ir#u# &oul allo= t)e "raqi overnment to &ounter %''on/obils move into uristan? T)e story ini&ate t)at B( =as a&tively &onsierin ir#u#: but t)at t)is =as in t)e early staes an neotiations )a not yet beun?516
Chevron Corporation Type
(ubli&imite!ompany
Traeas
09,%!DZ
$oune
1<;451
Ceaquarters
,anRamon:!alifornia ?51;
ey(eople
o)natson!)airmanan !%O751<
Revenue
+,G244?4billion2>117
0etin&ome V&)aneonpreviousyear Total Assets
+,G26?
52>
52>
52>
+, G2>117
52>
52>
%mployees ebsite
5:36en2>117 ===?&)evron?&om
515 B( )as aine stranle)ol over "raq after oilfiel eal is re=ritten: /he uardian, 31 uly 2>11? 516 "raq =ants B( to revive nort)ern ir#u# oilfiel: !euters, 1 April 2>12? 51 !ompany (rofile: Chevron: retrieve 22 anuary 2>12? 51; A Brief Cistory Of /ajor Oil !ompanies "n T)e .ulf Reion University of ?irginia: retrieve 22 anuary 2>12? 51< !orporate Offi&ers: Chevron: retrieve 22 anuary 2>12? 52> 2>11 Annual Report: Chevron, 2>11?
<
0lobal snapshot As of 2>11 !)evron =as t)e se&on larest interate oil firm )eaquartere in t)e +,A: follo=in %''on/obil?521 T)e &ompany &an tra&e its )istory ba&# to an oil is&overy at (i&o !anyon: nort) of os Aneles: in 1;<: =)i&) le to &reation of t)e (a&ifi& !oast Oil !ompany? T)e &ompany =as subsequently rename t)e ,tanar Oil !ompany of !alifornia: =)i&) emere from t)e brea#up of Ro&#efellers ,tanar Oil? an later be&ame !)evron =)en it a&quire t)e .ulf Oil !orporation in 1<;4: at t)e time 522 t)e larest merer in +, )istory? At t)e en of 2>11 !)evron )a net proven oil reserves of 4?3 billion barrels an net proven as reserves of 25:22< billion &ubi& feet ?14 billion &ubi& metres7? *aily li quis prou&tion =as 1?;5 million barrels per ay bp7 an as prou&tion =as 4?<4 billion &ubi& feet 1?4 billion &ubi& metres7 per ay?523 "n late 2>11 !)evron =as banne by BraEilian reulators for rillin on t)eir territory after t)ey suffere an oil spill off t)e Atlanti& &oast? 524 !)evron =as reporte to be nearin a settlement in late 2>12 for aroun +, G144 million: in orer to move to=ars restartin output?525
Chevron operations in Iraq #istory *urin t)e perio of international san&tions on ,aam Cusseins reime: !)evron =as one of t)e &ompanies t)at pur&)ase &rue from t)e reime as part of t)e +0 Oilfor-foo proram esine to brin )umanitarian ai to t)e "raqi people? "n 0ovember 2>> !)evron aree to pay G3> million to settle &)ares brou)t aainst it uner t)e $orein !orrupt (ra&ti&e s A&t $!(A7: but i not amit or eny t)e alleation s mae by t)e ,e&urities an %'&)ane !ommission ,%!7? T)e &)ares relate to appro'imately G2> million in illeal #i&#ba&# payments mae to "raq in 2>>1 an 2>>2?526 "n a lea#e +, iplomati& &able from 2>1>: !)evrons &ountry manaer for "raq e'presse t)e &ompanys eaerness to invest in post-,aam "raq: but Inot at any pri&eI? A&&orin to t)e &able: !)evron e'presse stron interest in a bi roun for e'ploration blo&#s: =)i&) it &onsiere to be politi&ally an e&onomi&ally attra&tive: )o=ever t)e &able es&ribe !)ev rons approa&) to=ars "raq as more &autious t)an ot)er international oil &ompanies "O!s7? !)evron =as in&lue on t)e list of pre-qualifie 521 !)evron !orporation: Hoovers: retrieve 22 anuary 2>12? 522 !ompany (rofile: Chevron: retrieve 22 anuary 2>12? 523 2>11 Annual Report: Chevron, 2>11? 524 !)evron Banne $rom *rillin "n BraEil After Oil ,pill: 4orbes: 23 0ovember 2>11? 525 !)evron nears settlement in BraEil spill &ase: !euters: 14 *e&ember 2>12?? 526 !)evron to (ay G3> /illion to ,ettle !)ares $or "mproper (ayments to "raq +ner +?0? Oil $or $oo (roram: Securities and )5change Commission : 14 0ovember 2>>?
<;
&ompanies to parti&ipate in t)e first li&ensin roun 52 an t)e &ompany =as $ren&) Totals oriinal partner for bot) biin rouns in 2>><: but ultimately refuse to join t)e biin: rearin t)e remunerations fees offere as unreasonably lo=?52;
Activities and contracts Rovi and Sarta (Kurdistan)
On t)e 1< uly 2>12 !)evron announ&e t)at its subsiiaries in "raq )a &omplete a eal to a&quire an ;> per&ent in t=o blo&#s ininterest t)e nort)ern uristan t)e Rovi an ,arta blo&#s? T)einterest remainin 2> per&ent =as ta#en by O/DReion: subsiiaries? uner t)e frame=or# of a prou&tion s)arin &ontra&t (,!7? T)e blo&#s lie nort) of %rbil: &overin a &ombine area of appro'imately 1:124 square #ilometres?52< "n retaliation for t)e &ontra&ts sine =it) t)e R.: later t)at mont) "raqs feeral overnment bla&#liste !)evron: bannin t)em from biin for e'ploration li&enses in future li&ensin rouns? T)e &entral overnment &onsiers &ontra&ts sine ire&tly =it) t)e R. as illeal?53>
China National Offshore Oil Corporation CNOOC! Type Traeas
,tate-o=ne ,%C>;;3N09,%!%O
$oune
1<;2
Ceaquarters
Beijin:!)ina
ey (eople
$u !)enyu !)airman7: 9an Cua !%O7531
Revenue
R/B24>?11?532
0et "n&ome
R/B >?3 billion appro'? +,G11?3 billion7: 2>11?532 532
V&)aneonpreviousyear Total Assets
[211?533
52 Oil /inistry Announ&es Fualifi&ation Results: "ikileaks: 15 April 2>>;? 52; !)evron On "o& "nvestin "n "raq: "ikileaks: 2> $ebruary 2>1>? 52< !)evron A&quires "nterest in uristan !on&essions: Chevron: 1< uly 2>12? 53> "raq bans !)evron over uristan eal: 4inancial /imes: 24 uly 2>12? 531 Annual Report 2>1>: C*00C: 2>11? 532 Annual Report 2>11: C*00C, 2>11?
<<
Total%quity
R/B 262?< billion appro'? +,G42?2 billion7: en 2>11?533
%mployees ebsite
5:3en2>117
534
===?&noo<?&om
0lobal snapshot !0OO! t is t)e liste unit of t)e !)ina 0ational Offs)ore Oil !orporation 535 an is liste on t)e 0e= 9or# an Con on sto&# e'&)anes? T)e !0OO! .roup is !)inas larest prou&er of offs)ore &rue oil an natural as an mainly enaes in e'ploration: evelopment: prou&tion an sales of oil an natural as? T)e .roup )as four major prou&in areas in offs)ore !)ina an )as overseas assets in "nonesia: Australia: 0ieria: Arentina an t)e +,: amon ot)ers? As of *e&ember 2>1>: t)e &ompanys overseas prove reserves an prou&tion a&&ounte for appro'imately 25?4 per&ent an 2>?1 per&ent of operations respe&tively?536 At t)e en of 2>11 t)e !0OO! .roup o=ne net proven reserves of appro'imately 3?1< billion barrels of oil equivalent joe7 an averae aily net prou&tion =as <><:>>> barrels per ay bp7? "n 2>>5 !0OO! =it)re= an G1;?5 billion ta#eover bi it )a mae for +, oil an as prou&er +no&al in t)e fa&e of stron politi&al opposition in t)e +,? Co=ever: t)e &ompany sai t)at its bi )a been base on purely &ommer&ial obje&tives?53
CNOOC operations in Iraq #istory T)e te&)ni&al servi&e &ontra&t sine in 2>1> for t)e /aysan oil fiels: lo&ate about 35> #ilometers sout)east of Ba)a: mar#e t)e start of !0OO!s operations in "raq?53;
Activities and contracts Maysan 53<
"n /ay 2>1> !0OO! sine a te&)ni&al servi&e &ontra&t =it) t)e "raqi overnment 533 Annual Report 2>11: C*00C? 534 About us: C*00C: retrieve 1; *e&ember 2>11? 535 !noo& bas oil fiel eal in "raq: China %aily: 1; /ay 2>1>? 536 Annual Report 2>1>: C*00C: 2>11? 53 !)inese oil firm rops +no&al bi: uardian: 2 Auust 2>>5? 53; !0OO! t? Announ&es t)e ,inin of Te&)ni&al ,ervi&e !ontra&t for /issan Oil $iels in "raq: C*00C Limited: 1 /ay 2>1>? 53< !0OO! t? Announ&es t)e ,inin of Te&)ni&al ,ervi&e !ontra&t for /issan Oil $iels in "raq: C*00C Limited: 1 /ay 2>1>?
1>>
to
evelop t)e /aysan oilfiel &omple' alon =it) Tur#is) state-run T(AO? !0OO!s oriinal partner for evelopin t)e fiels: ,ino&)em: pulle out of t)e eal =)en !0OO! e&ie to re&onsier its oriinal offer an a&&ept t)e "raqi overnments propose remuneration fee of +, G2?3> per barrel of oil prou&e? T(AO t)en joine t)e venture to fill t)e ap? !0OO! an T(AO set a prou&tion plateau taret for t)e fiels at 45>:>>> barrels per ay bp7? !0OO! )ols a 63?5 per&ent sta#e in t)e venture: =)ile T(AO )ols 11?25 per&ent 54> an t)e "raq *rillin !ompany "*!7 )ols a 25 per&ent sta#e?541 !)airman !)enyu &ommente t)at Iit is a pleasure for !0OO! to parti&ipate in rebuilin of t)e oil inustry in "raqI an analysts tol t)e China %aily t)at t)e move unerlines omesti& oil &ompanies fo&us on evelopin oil resour&es in "raq: sayin t)at It)e &ountry remains one of t)e fe= reions in t)e =orl =)ere !)inese &ompanies &an still fin bi opportunitiesI?542
China National Petroleum Corporation CNPC! Type
.overnment-o=ne!orporation
$oune
1<;;
Ceaquarters
Beijin:(R!)ina
eypeople
ianiemin(resient7
Revenue
+,G352?3billion2>117
0et"n&ome
+,G16?3billion2>117
V&)aneonpreviousyear
+,G4;1?1billion
543
Totalequity
+,G24>?5billion
543
ebsite
543
[13?6V
Totalassets
%mployees
543
1:66;:>22>127
543
===?&np&?&om?&n
0lobal snapshot .overnment-o=ne !0(! is !)inas larest interate oil an as &ompany: =it) e'ploration an prou&tion proje&ts in !)ina an 3> ot)er &ountries? "t is an oilfiel servi&es provier in 5> &ountries an operates some oler refineries an a as pipeline 54> "raq in eal =it) !0OO!: T(AO for /aysan oilfiels: Best ro&th Stock quotin !euters: 12 /ay 2>1>? 541 "nternational A&tivities: /PA0: retrieve 13 *e&ember 2>11? 542 !noo& bas oil fiel eal in "raq: China %aily: 1; /ay 2>1>? 543 .lobal 5>> !)ina 0ational (etroleum: C** (oney: retrieve 1; *e&ember 2>12?
1>1
net=or# in !)ina in&luin > per&ent of t)e &ountrys &rue oil pipelines7? T)e !0(! )as a net=or# of 1;:>>> as stations a&ross !)ina?544 T)e oranisation =as establis)e in 1<<; an reoranise in 1<<; to be&ome an interate &ompany? 545 !0(! is t)e &ontrollin s)are)oler of (etro&)ina !ompany imite?546 "n 2>>< t)e &ompany &omplete more t)an 1:<>> e'ploration =ells an reporte prove reserves of more t)an 1 billion metri& tons of oil equivalent? 544 "n 2>12 !0(! =as ran#e 6t) on !00s .lobal 5>> list of t)e =orls larest &orporations?54 !0(!s 2>1> Annual Report notes t)at !0(! )as been see#in a reater inter54;
national role over&omes t)e past ? A&&orin to t)e $ortune .lobal 5>>: part of !0(!s strent) fromfive itsyears partners)ips =it) overnments of oil-ri&) &ountries an t)e multinational &ompanies t)at operate t)ere? "n 2>11 !0(! =as =or#in =it) Russia: DeneEuela: "raq an Fatar: an )a partnere =it) oil majors B(: Total an ,)ell?54<
CNPC operations in Iraq #istory !0(!s involvement in "raq ates ba&# to 1<<: =)en !0(! sine a eal =it) ,aam Cusseins overnment to evelop t)e A)ab oilfiel? 55> T)e eal =as bet=een al-a)a (etroleum !ompany: a joint venture bet=een t)e !0(! an !)ina 0ort) "nustries !orporation7 an t)e "raqi overnment at t)e time? Co=ever: t)is areement =as postpone ue to t)e +0 san&tions on "raq an t)e subsequent +,-le invasion of t)e &ountry in 2>>3?551 !0(! reneotiate t)e eal for t)e A)ab oil fiel =it) "raqs /inistry of Oil in 2>>; ? 552 ,in&e t)en !0(! )as also =on &ontra&ts as part of t=o separate &onsortia to evelop t)e Calfaya an Rumaila oil fiels?
Activities and contracts Ahdab
+ner t)e terms of t)e servi&e &ontra&t reneotiate in 2>>;: 553 oil output from A)ab is e'pe&te to rise to 11>:>>> barrels per ay bp7: up from t)e <>:>>> bp fore&ast in t)e oriinal ealN an total investment in t)e proje&t =oul be about +, G3 billion? 554 544 !)ina 0ational (etroleum !orporation !ompany *es&ription: Hoovers: retrieve ; *e&ember 2>11? 545 Cistory: C*PC: retrieve 1; *e&ember 2>12? 546 "nvestor Relations: Petrochina: retrieve 1; *e&ember 2>12? 54 .lobal 5>> !)ina 0ational (etroleum: C** (oney: retrieve 1; *e&ember 2>12? 54; 2>1> Annual Report: C*PC: 2>1>? 54< $ortune 5>> !)ina 0ational (etroleum !orporation: C** (oney: retrieve < *e&ember 2>11? 55> T)e !)inese 0ational (etroleum !ompany : /he International !esource Journal: /ar&) 1> 2>1>? 551 !0(! in "raq : !0(! orl=ie: retrieve anuary 2>11? 552 !)inas !0(! seals G3bn "raq eal : BB! 0e=s: 2; Auust 2>>;? 553 !0(! in "raq: C*PC: retrieve 14 0ovember 2>12? 554 !)inas !0(! seals G3bn "raq eal : BBC *e&s: 2; Auust 2>>;?
1>2
!0(! bean =or# on t)e fiel in /ar&) 2>><: espite protests from lo&al farmers: 555 an in une 2>11 announ&e t)at it )a &omplete &onstru&tion of t)e first p)ase of t)e proje&t?554 Halfaya
"n 2>>< !0(! le a &onsortium =)i&) =on t)e &ontra&t to evelop Calfaya: =it) !0(! )olin a 3?5 per&ent sta#e in t)e proje&t? Total an (etronas )el 1;?5 per&ent ea&) an "raqi state-run ,out) Oil !ompany ,O!7 )el t)e remainin 25 per&ent sta#e?556? Rumaila
"n une 2>>< !0(! =as part of a B(-le &onsortium =)i&) =on a servi&e &ontra&t to evelop t)e Rumaila oil fiel: "raqMs larest?55 T)e lon term &ontra&t se&ure by t)e B(le &onsortium =as t)e first in post-2>>3 "raqN55; !0(! )ols a 3 per&ent sta#e in t)e venture: =it) B( )olin 3; per&ent an t)e "raqi state t)e remainin 25 per&ent? 55 !0(! re&eive a 2 million barrel &aro of &rue as its first payment for evelopin Rumaila in /ay 2>11?561 West urna !
Bloomber reporte in Auust 2>12 t)at !0(! =as in tal#s =it) Russias u#oil about joinin t)e &ompanyMs est Furna 2 proje&t: a&&orin to enery intellien&e roup 0efte !ompass? reporte t)at e'it: u#oil&itin =as see#in a partner )ea for a 3> per&ent sta#e inT)e t)eenery proje&troup follo=in ,tatoilMs Anrei uEyaev: of u#oil Overseas?562
Discount oil sales !euters reporte in 0ovember 2>12 t)at "raq =as strulin to fin buyers for all its
2>13 oil output on term &ontra&ts be&ause of t)e variable quality of "raqi oil: offi&ial pri&es t)at buyers believe =ere too )i) an t)e availability of &)eaper spot supplies? !0(! =as offerin barrels at up to an +, G>?;> is&ount to "raqs offi&ial pri&esN !euters quote an "raqi offi&ial as sayin I=e are not )appy about t)is?I T)e offi&ial sai t)at !0(! an ot)er &ompanies su&) as B( are pai in &rue for t)eir evelopment &ontra&ts: an are entitle to re-sell t)e oil provie t)ey Ioffi&ially informI ,O/O?563 555 !0(! &ompletes Al-A)ab "raq oilfiel &onstru&tion: Arabian 0il and as: 2 une 2>11? 556 "raq !0(!s Calfaya proje&t in "raq to start operation in C2 : /he 4ree Library: < /ar&) 2>1>? 55 Blan&)ar: !)ristoper /: "raq: Oil an .as eislation: Revenue ,)arin: an +?,? (oli&y: 3 0ovember 2>>1>? 55< B(-!)ina 0ational .roup ,ins (a&t for "raq Oil $iel: "all Street Journal: 4 0ovember 2>> B( to Be (ai in !rue for "raq "nvestment !osts: Bloomberg, 2; April 2>1>? 561 !0(! .ets $irst Oil (ayment for Rumaila: Ira' Business *e&s: 3> /ay 2>11? 562 !0(! in Tal#s it) u#oil on est Furna-2: 0efte !ompass ,ays: Bloomberg: < Auust 2>12? 563 "raq strules to sin up oil buyers for 2>13 term eals: !euters: 0ovember 2>12?
1>3
DNO International Type Traeas
(ubli&imite!ompany O,%*0O
$oune
1<1
Ceaquarters
Oslo:0or=ay
ey (eople
Cele %iearsen (resient an /*7: Bere !)airman7
Revenue
0O 2?1 billion: appro'? G3611?564
0et "n&ome
0O 653?2 million appro'? +, G116? million7564
V&)aneonpreviousyear
33>?
564
Total Assets
0O 5 billion appro'? +, G;<11?564
Total %quity
0O 2?2 billion appro'? +, G3;5?3 million7: en 2>11?564
ebsite
===?no?no
0lobal snapshot *0O "nternational A,A is a 0or=ay-base oil an as e'ploration an prou&tion &ompany? "t =as foune in 1<1 an =as t)e first 0or=eian oil &ompany to be liste on t)e 0or=eian sto&# e'&)ane? "nitial e'ploration an prou&tion a&tivities =ere in t)e Britis) an *ut&) territories of t)e 0ort) ,ea? 565 Co=ever more re&ently "ts operatin a&tivities )ave been primarily unerta#en in t)e /ile %ast: Afri&a an in t)e +? T)e &ompany )ols oil an as assets in 9emen: t)e uristan reion of "raq: t)e 0ort) ,ea: /oEambique an %quatorial .uinea? T)e &ompany is also a&tive on t)e 0or=eian !ontinental ,)elf?566 At t)e en of 2>11 *0O )el total remainin proven an probable reserves 2(7 of 31?< million barrels of oil equivalent boe7? T)is represente a <1?5 per&ent year-onyear in&rease sin&e 2>1>: larely ue to t)e up=ar revision of re&overable reserve es timates at t)e Ta=#e fiel in "raqi uristan? 56 .ross prou&tion in 2>11 =as 64:1;5 million barrels of oil equivalent boe7 per ay?56; 564 Annual Report an A&&ounts 2>11: %*0, 2>11? 565 Cistory: %*0: retrieve 1; *e&ember 2>12? 566 *0O "nternational A,A: !euters: retrieve 22 *e&ember 2>11? 56 *0O "nternational Releases Annual ,tatement of Reserves: %*0 International: 3> April 2>12? 56; Annual Report an A&&ounts 2>11: %*0 International, 2>11?
1>4
DNO operations in Iraq #istory *0Os a&tivities in "raq bean in 2>>4: =)en *0O sine a prou&tion s)arin &ontra&t (,!7 for t)e Ta=#e fiel =it) t)e uristan Reional .overnment R.7? 56< *0O )as (,!s for t)ree &ontra&t areas in t)e uristan reion Ta=#e: *o)u#: an %rbil? 5> *0O )as a lo&al offi&e in %rbil: =)ile its a&tivities in uristan are manae from anot)er offi&e in *ubai?5> T)e R. temporarily suspene *0Os oil &ontra&ts in ,eptember 2>>< after a o&ument issue by t)e Oslo ,to&# %'&)ane implie t)at R. 0atural Resour&es /inister As)ti Ca=rami =as involve as a benefa&tor in t)e sale of *0O s)ares to .enel %nery in O&tober: alleations t)at t)e R. enie an respone t=o by suspenin *0Os &ontra&ts for si' =ee#s?51 *0O )as been involve in t=o &ontroversies rearin t)e )irin of senior +, offi&ials to promote its a&tivities in uristan? 52 "n 2>>5: (eter .albrait) =as pai by *0O in an avisin role even as .albrait) in )is offi&ial &apa&ity as a +, iplomat =as avisin on &onstitutional arranements: =)i&) resulte in t)e R. aut)orities &laimin support for reional manaement of t)e oil inustry ?53 T)en in mi-2>1>: former +, ambassaor to "raq @almay )alilEa =as nominate for t)e boar of *0O: t)ou) )e later e&line to fill t)e post?54
Activities and contracts "a#ke (Kurdistan)
T)e Ta=#e &ontra&t area: in =)i&) *0O )as a 55 per&ent =or#in interest: 55 is lo&ate in nort)ern "raq near t)e Tur#is) an ,yrian borers? After sinin t)e initial (,! in 2>>4: *0O first is&overe oil at t)e Ta=#e fiel in 2>>6: =it) test prou&tion of oil &ommen&in by 2>>? By 2>>< t)e fiel )a been &onne&te to t)e e'istin nort)ern pipeline system t)rou) "raq: an international e'port from t)e fiel bean in 2>11? 56 As of 0ovember 2>11 t)e fiel )a a prou&tion &apa&ity of >:>>> barrels per ay bp7 but a&tually prou&e about 5>:>>> bp?55 A ispute bet=een t)e R. an Ba)a over oil e'ports &ause prou& tion to slo= to 1:>>> bp in t)e se&on quarter of 2>12: but *0O manain ire&tor Cele %ie sai in Auust 2>12 t)at t)e &ompany =as 56< uristan reion of "raq: %*0 International, retrieve 14 0ovember 2>12? 5> 2>1> Annual Report: %*0 International, retrieve 3> 0ovember 2>11? 51 R. suspens *0O oil &ontra&ts: United Press International, 22 ,eptember 2>>1>? 53 *0O (ays .albrait) an eeps Business in uristan: !uda&, 11 O&tober 2>1>? 54 )alilEa =ont join *0O: Ira' 0il !e1ort, 12 Auust 2>1>? 55 *0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel: Ira' %aily /imes, 15 0ovember 2>11? 56 uristan reion of "raq: %*0 International, retrieve 14 0ovember 2>12?
1>5
on tra&# to in&rease prou&tion at Ta=#e to 1>>:>>> bp by t)e en of t)e year? 5 $rbil (Kurdistan)
*rillin at t)e %rbil &ontra&t area just nort) of t)e R. &apital &ity of t)e same name: in =)i&) *0O )as a 4> per&ent =or#in interest: 5; bean in 2>11?5< "n 0ovember 2>12 *0O announ&e t)at ne= quantities of oil =ere is&overe at t)e Benenan-3 =ell: =)i&) t)e &ompany sai is e'pe&te to more t)an ouble t)e Benenan fiels ross oilin-pla&e volumes from 3>> million barrels to an estimate 6>>->> million barrels?5;> %ohuk (Kurdistan)
T)e *o)u# &ontra&t area: in =)i&) *0O )as a 4> per&ent =or#in interest: 5;1 is about ;> #ilometers nort) of t)e &ity of /osulN rillin at *o)u# bean in 2>1> 5;2 an as of 0ovember 2>12 it remaine an e'ploration area?5;3
Dra5on Oil Type
(ubli&imite!ompany
Traeas
",%R*,A,%*.O
$oune
1<15;4
Ceaquarters
*ubai+A%7
ey (eople
/o)amme Abulla) A)me Al .)urair !)airman7: Abul-aleel Al-)alifa !%O7
ebsite
===?raonoil?&om
0lobal snapshot *raon Oil =as establis)e in 1<1 as Oliver (rospe&ti n 8 /inin !o? imite: in&orporate an reistere in "relan: an in 1<<3 &)ane its name to *raon Oil pl&? "t )as a primary listin on t)e "ris) ,to&# %'&)ane an sin&e t)e 6 April 2>1> is also lis5;4
te t)e onon ,to&# "ts &orporate )eaquarters are in *ubai?=)en "n it1<<< t)e on %mirates 0ational Oil%'&)ane? !ompany %0O!7 be&ame t)e major s)are)oler a&5 !)ares in "raqs uristan &ause *0O to slie into t)e re: )kurd-net, 23 Auust 2>12? 5; *0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel: Ira' %aily /imes, 15 0ovember 2>11? 5< 2>1> Annual Report: %*0 International, retrieve 3> 0ovember 2>11? 5;> *0O "nternational Taps Aitional Oil in uristan: %*0 International, 6 0ovember 2>12? 5;1 *0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel: Ira' %aily /imes, 15 0ovember 2>11? 5;2 2>1> Annual Report: %*0 International, retrieve 3> 0ovember 2>11? 5;3 Assets in uristan: %*0 International, retrieve 14 0ovember 2>12? 5;4 *raon Oil At A .lan&e: %ragon 0il: retrieve 5 *e&ember 2>12?
1>6
quire 612 =as part of a =innin &onsortium for a bi to evelop t=o blo&#s in Af)anistan? 5;6 As of t)e 31 *e&ember 2>11 t)e &ompany )a prove an probable reserves of 65?; million barrels of oil an &onensate: 1?5 trillion &ubi& feet t&f7 of as reserves an 1?4 t&f of as resour&es?5;4
Dra5on Oil operations in Iraq #istory *raon Oil investe in "raq for t)e first time in 2>12?
Activities and contracts &lock '
"n 2>12 *raon Oil parti&ipate =it) a 3> per&ent sta#e in a &onsortium t)at =on ri)ts to e'plore in one of t)e fe= blo&#s a=are in "raqs fourt) li&ensin roun? Ot)er partners in t)e &onsortium =ere u=ait %nery !ompany 4> per&ent7 an Tur#is) T(AO 3> per&ent7? A&&orin to t)e +s 4inancial /imes: t)is move =as part of *raons stratey to in&rease its e'ploration base: =)i&) is &on&entrate in t)e !aspian reion: =it) !%O Abul aleel al )alifa &ommentin t)at Ientry into "raq )as been uner &onsieration for some time an so represents a stratei& move for *raonK? 5; .eoloists believe t)at Blo&# <: a=are to t)e &onsortium : &oul in&lue part of t)e lare AEaean oil fiel in nei)bourin "ran?5;;
+ni Type
(ubli&imite!ompany
Trae $oune
B"T%0"09,%%0" 1<53
Ceaquarters
Rome:"taly
5;5 !ompany Overvie= *raon Oil !ig#one: retrieve 5 *e&ember 2>12? 5;6 *raon Oil &onsortium =ins t=o blo&#s in Af)an tener: Proactive Investors: 5 *e&ember 2>12? 5; *raon &onsortium =ins "raq oil fiels bi: 4inancial /imes: 4 une 2>12? 5;; *raon Oil =ins e'ploration ri)ts in "raq: /he *ational: 31 /ay 2>12?
1>
ey people
Roberto (oli !)airman7: (aolo ,&aroni !%O7
Revenue
Y1>11?5;<
0et "n&ome
Y?; billion appro'? +, G1>?3 billion7: 2>11?5;<
V&)aneonpreviousyear
[5?V
Total assets
Y142?< billion +,5;< G1;;?< billion7:appro'? en 2>11?
Total equity
Y6>?4 billion appro'? +, G11?5;<
%mployees
<:>>>2>117
ebsite
5;<
===?eni?it
0lobal snapshot %ni is one of "talyMs larest &ompanies an t)e =orls nineteent) larest oil &ompany by prou&tion in 2>12? 5<> "t operates in t)e oil an natural as: petro&)emi&als: an oil fiel servi&es inustries: an )as e'pane into po=er eneration? T)e "talian overnment )ols a s)are of more t)an 3> per&ent in t)e &ompany 5<1: =)i&) operate in more t)an > &ountries =orl=ie as of 2>11?5<2 At t)e en of 2>11 %ni )a estimate net proven reserves of ?>< billion barrels of oil equivalent boe7:5<3 an in 2>12 t)e &ompany =as prou&in 2?2 million barrels per ay bp7 lobally?5<4
+ni operations in Iraq #istory %ni bean &arryin out enineerin stuies in various oilfiels on be)alf of t)e "raqi /inistry of Oil in t)e 1<;>s? "n 1<<2 t)e Oil /inistry sine prou&tion s)arin areements (,As7 =it) several international oil &ompanies "O!s7 to evelop oilfiels in t)e &ountry? %ni neotiate a (,A for t)e 0asiriya) oilfiel an in 1<< sine a memoranum of unerstanin /o+7 rearin t)e fielN but t)is areement =as never follo=e t)rou) ue to +0 san&tions impose on t)e &ountry? 5<5 %ni bean operatin in 5;< Annual Report 2>11: )ni, 2>11? 5<> T)e orls Biest Oil !ompanies: 4orbes: 16 uly 2>12? 5<1 %ni ,pA !ompany (rofile? .ahoo 4inance: retrieve 4 O&tober 2>11? 5<2 %0" ,(A? Bloomberg Business "eek : retrieve 4 O&tober 2>11? 5<3 Oil an 0atural .as Reserves: )ni: retrieve 1; *e&ember 2>12? 5<4 T)e orls Biest Oil !ompanies: 4orbes: 16 uly 2>12? 5<5 "raq %'ploration an (rou&tion: )ni: retrieve < *e&ember 2>11
1>;
"raq on&e aain =)en a=are a servi&e &ontra&t for t)e @ubair eposit urin t)e 2>>< biin rouns: follo=in ,aam Cusseins fall from po=er in 2>>3? 5<6 "n Auust 2>12: %ni !%O (aolo ,&aroni sai t)e &ompany i not plan to &ompromise its business in "raq by ma#in enery eals =it) t)e &ountrys semi-autonomous uristan reion? 5< 0evert)eless: in O&tober 2>12 t)e "all Street Journal reporte t)at ,&aroni sai %ni =as less ent)usiasti& about "raq t)an =)en it first bean operations in t)e &ountry: an t)at t)e overnment in Ba)a s)oul &onsier =)y some lobal &ompanies are oin to uristan? IOur arenaline rus) no= is not =)at it =as =)en =e entere "raq:I ,&aroni =as quote as sayin by t)e "all Street Journal? I"raq is more &omple' t)an =e first t)ou)t?I ,&aroni ae t)at %nis issues =it) "raq are its )i) levels of bureau&ra&y: limite enery infrastru&ture an t)e politi&al situation =it) t)e uristan reion: =)i&) follo=s its o=n poli&y =)en it &omes to )yro&arbon a&tivities?5<; As of O&tober 2>12 %ni )a investe bet=een +, G4 billion an G5 billion in its "raqi a&tivities out of t)e planne G1; billion?5<;
Activities and contracts ubair
T)e @ubair &ontra&t area is lo&ate in /aysan provin&e about 2> #ilometres sout)=est of t)e &ity of Basra in sout)ern "raq ?5<< "n 2>>< %ni =as part of a &onsortium in&luin (etroleum oas =)i&) =on t)e23?44 &ontra&t to evelop @ubair? %ni )olsO&&iental a 32?;1 per&ent sta#e:an =)ile O&&iental )ols per&ent: oas 1;?5 per6>> &ent an "raqs state-run /aysan Oil !ompany t)e remainin 25 per&ent? (rou&tion at t)e @ubair fiel in&rease from 1;3:>>> barrels per ay bp7 to more t)an 2>1:>>> bp in 2>1>?6>1 "n 0ovember 2>11 %ni sine a preliminary areement for a +, G24> million proje&t to rill 22 oil =ells an more t)an ouble prou&tion at @ubair: penin approval from t)e "raqi Oil /inistry?6>2 @ubair =as pumpin oil at an averae rate of 2>:>>> bp in Auust 2>12? 6>3 T)e servi&e &ontra&t )as a uration of 2> years: an as part of t)e &ontra&t t)e &onsortium =as ue to pay t)e "raqi Oil /inistry +, G3>> million as a refunable five-year loan: instea of payin a sinature bonus as =as t)e &ase in ot)er eals mae in t)e se&on li&ensin roun in *e&ember 2>>< ?6>> *evelopment of @ubair pus)e up %nis estimates for lobal investment to appro'imately +, G2 billion in t)e 2>1>\2>13 time frame: an in&rease of ; per&ent from t)e 2>><\2>12 plan: 6>4 =it) taret prou&tion e'5<6 %ni a=are t)e li&ense for t)e @ubair iant fiel in "raq: )ni : retrieve 15 0ovember 2>12? 5< %ni )as no plans for uristan oil eals !%O: !euters: 2> Auust 2>12? 5<; %nis !%O %nt)usiasm anin for Bureau&rati& "raq: "all Street Journal: 31 O&tober 2>12? 5<< @ubair Ira' )nergy: retrieve 14 0ovember 2>12? 6>> %ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel: "all Street Journal: 25 anuary 2>1>? 6>1 %0" &)ief meets "raqs prime minister: UPI: 2 ,eptember 2>11? 6>2 %ni ,ins G24> /illion "raq Oil-ells Areement: Offi&ial ,ays: Bloomberg: 3 0ovember 2>11? 6>3 %ni a=ars G3512? 6>4 %ni .ains /omentum in "ra:q 6acks Investment !esearch: 26 /ay 2>1>?
1><
pe&te to be proressively rea&)e by 2>16 an maintaine for seven years t)ereafter?6>5 T)e eal )as t)e potential to be e'tene to 25 years an t)e &onsortium plans to in&rease t)e fiels prou&tion to 1?2 million bp? 6>> %ni )a oriinally propose a remuneration fee of over G4 a barrel: but aree to a&&ept G2 a barrel after B( a&&epte t)e same for t)e Rumaila fiel in 0ovember 2>>>< arti&le in Business "eek reporte t)at an %ni representative sai t)at &larifi&ations from "raq on ta'-relate issues =ere &riti&al in t)e e&ision to a&&ept a lo=er pri&e?6>6 asiriyah
*urin a 2>11 meetin =it) "raqi (/ 0ouri al-/ali#i: %ni !%O (aolo ,&aroni &ommente t)at )is &ompany =as intereste in parti&ipatin in t)e up&omin biin roun for evelopment of t)e 0asiriya) fiel: a&&orin to UPI?6>1
+##on*obil Type
(ubli&imite!ompany
Traeas
09,%ZO/
$oune
1<<<
Ceaquarters
Te'as:+,A
ey people
Re' Tillerson !)airman an !%O7
Revenue
+,G4;6?4billion2>117
0etin&ome
+,G41?1billion2>117
V&)aneonpreviousyear
[34?;V
6> 6>
6>
Total assets
+,G 34< billionen 2>117
Total equity
+,G 154?4 billion en 2>117
%mployees
;2:1>>en2>117
ebsite
6> 6>
6>
===?%''on/obil?&om
0lobal snapshot "n 2>12 %''on/obil toppe t)e $ortune 5>> list of t)e larest Ameri&an &orporations ran#e by revenue ?6>; "t bean life as t)e ,tanar Oil !ompany in 1;;2 an be&ame %''on/obil in 1<<< as an allian&e bet=een t=o of t)e ire&t es&enants of o)n *? 6>5 %ni !onsortium to Reevelop @ubair $iel in "raq: !ig#one *e&s: 22 anuary 2>1>? 6>6 )y Oil /ajors Are !omin Ba&# to "raq: Business "eek: 4 0ovember 2>> 2>11 ,ummary Annual Report: )55on(obil, 2>11? 6>; $ortune 5>> %''on/obil: C** (oney: retrieve 1; *e&ember 2>12?
11>
Ro&#efellers ,tanar Oil !ompany: %''on an /obil?6>< T)e &ompany )as several ivisions an )unres of affiliates =it) names in&luin %''on/obil: %''on: %sso or /obil?61> At t)e en of 2>11 t)e &ompany )el lobal proven reserves of 24?< billion barrels of oil equivalent boe7 611 an averae lobal net prou&tion over 2>11 =as 4?51 million boe per ay?6> "n 2>>;: on t)e ba&# of soarin lobal oil pri&es: %''on/obil be&ame t)e =orls most valuable firm =)en s)ares soare by over 4> per&ent in a year? 612 "n 2>1> t)ey a&quire ZTO a leain eveloper of rillin un&onventional resour&es in&luin s)ale oil an 613 s)ale%nery: as: =)i&) requires avan&e te&)niques? "n Auust of 2>11: %''on se&ure a G3?2 billion joint venture =it) Rosneft on )i) ris# eep-sea e'ploration in t)e Ar&ti& an Russian Bla&# ,ea?611
+##on*obil operations in Iraq #istory "n t)e first )alf of t)e 1<>>s: %''on/obil )el a 23?5 per&ent s)are )el in t=o equal parts by t)e t)en-separate &ompanies of %''on an /obil7 in t)e "raq (etroleum !ompany "(!7 alon =it) Total: ,)ell an B(? 614 %''on an t)e ot)er forein oil majors assets in "raq =ere ta#en over by t)e "raq 0ational Oil !ompany "0O!7 after t)ey =ere nationalise by "raqs BaMat)ist overnment in une 1<2?615 %''on/obil restarte operations in "raq in 2>>< after =innin a &ontra&t: as part of a &onsortium: to re)abilitate an reevelop t)e est Furna ()ase 1 fiel in sout)ern "raq?616 Co=ever later in 0ovember 2>11 t)e &ompany sine &ontra&ts for si' e'ploration blo&#s =it) t)e uristan Reional .overnment R.7? T)e "raqi &entral overnment in Ba)a &laims all &ontra&ts =it) t)e R. are illeitimate: 61 an as of O&tober 2>12 %''on/obil =as attemptin to sell its sta#e in est Furna ()ase 1 as it prepare to start rillin in uristan?61; %''ons move into t)e uristan reion )as broa eopoliti&al impli&ations: a&&orin to t)e Petroleum %&onomist: an uris) (resient /assou BarEani &ompare %''ons investment in t)e reion to It)e equivalent of ten military ivisionsI? 61< On t)e ba&# of es&alatin tensions in late 2>12 over ispute territories bet=een t)e R. an t)e 6>< Our Cistory: )55on(obil: retrieve O&tober 2>11? 61> %''on/obil !orporate (rofile: !euters: retrieve O&tober 2>11? 611 %''on /obil &lin&)es Ar&ti& oil eal =it) Rosneft: "all Street Journal: 23 $ebruary 2>12? 612 T)e ae of oil: /he )conomist: 24 $ebruary 2>>5? 613 %''on /obil to buy ZTO %nery in bi +?,? as bet: !euters: 14 *e&ember 2>> anuary 2>13? 615 "raq Openin to B(: %''on /obil: ,)ell for $irst Time ,in&e 1<2: Bloomberg: 3 /ar&) 2>1>? 616 Our operations in "raq: )55on(obil Ira': retrieve 15 0ovember 2>12? 61 %''on sins ur e'ploration &ontra&ts: 4inancial /imes: 1> 0ovember 2>11? 61; %''on 0ears ,ale of ,out) "raq ,ta#e: "all Street Journal: 1; O&tober 2>12? 61< ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12?
111
&entral overnment: a )i)-ran#in military offi&er tol t)e "ashington Post t)at if an oil &ompany =ere to bein =or#in in t)e ispute areas it =oul be &onsiere Ia e&laration of =arI? A&&orin to t)e report %''ons &ontra&ts are t)e most &ontroversial of t)ose sine =it) t)e urs be&ause of t)e &ompanyMs i&oni& stature an t)e lo&ation of its e'ploration blo&#s: on t)e sout)ernmost ees of "raqi uristanMs interpretation of its territory?62>
Activities and contracts West urna Phase *
"n 2>>< t)e &ompany forme part of a &onsortium alonsie ,)ell =)i&) =on t)e &ontra&t to evelop est Furna ()ase 1: a fiel =)i&) )ols )ols ;? billion barrels bbl7 in proven oil reserves:621 t)us ensurin t)eir position as one of t)e larest players in post=ar "raq?622 T)is areement =as formalise in anuary 2>1> =)en %''on/obil "raq imite: an affiliate of %''on/obil: sine an areement =it) t)e "raqi /inistry of Oil? T)e areement esinate %''on/obil as t)e lea &ontra&tor =it) a 6> per&ent interest in t)e &onsortium: =it) t)e "raqi state-o=ne Oil %'ploration !ompany O%!7 )olin a 25 per&ent interest: an ,)ell )olin a 15 per&ent interest? 623 %''on/obils sinin in 0ovember 2>11 of e'ploration &ontra&ts =it) t)e R.: =)i&) t)e overnment in Ba)a &onsiers illeal:624 put its fiel evelopment &ontra&t at est Furna ()ase 1 at ris#: sai Abul /a)y al-Ameei: )ea of "raqs (etroleum !ontra&ts an i&ensin *ire&torate (!*7? Al-Ameei tol %o& Jones *e&s&ires t)at %''on &oul be repla&e at est Furna 1 by ,)ell: =)i&) )ols a minority 15 per&ent7 interest in t)e evelopment &ontra&t: or potentially any ot)er &ompany? "n t)e aftermat) of t)e R. &ontra&t sinin t)e "raqi overnment also &onsiere imposin san&tions on %''on/obil: a&&orin to *eputy (rime /inister for %nery Cussein ,)a)ristani: t)ou) it =as not &lear uner =)at leal aut)ority it mi)t o so? 625 !euters reporte in 0ovember 2>12 t)at t)e &ompany =as in avan&e staes of tal#s
to sell its sta#e in est Furna ()ase 1: to enable it to fo&us on its eal for e'ploration blo&#s in urist an: 626? ,)a)ristani tol Ira' 0il !e1ort t)at a ealine of t)e en of 2>12 )a been set to &on&lue t)e eal: )o=ever transfer of operations =as li#ely to ta#e loner?62 T)e "all Street Journal quote a sour&e sayin t)at t)e proje&t =as never e'pe&te to be lu&rative uner t)e best of &ir&umstan&es: an t)at t)e G1?<> li&ense fee =oul barely be enou) to &over t)e &ompanys &osts?62;
62> "n "raq: %''on oil eal foments tal# of &ivil =ar: "ashington Post: 1; *e&ember 2>12? 621 %''on !onsortium Os "raq !ontra&t !)anes: !ig#one: anuary 1<: 2>1>? 622 %''on/obil =ins G5>bn &ontra&t: /he uardian: 5 0ovember 2>>1>? 624 %''on may fa&e san&tions from uristan eal: /he lobe and (ail 22 0ovember 2>11? 625 %''on may fa&e "raq san&tions: lose est Furna: Arabian0ilandas-com 22 0ovember 2>11? 626 +(*AT% 3-%''on to pi&# ?Furna buyer soon -"raqs ,)a)ristani: !euters: 14 0ovember 2>12? 62 F8A Cussain al-,)a)ristani: Ira' 0il !e1ort: 1; *e&ember 2>12? 62; %''on 0ears ,ale of ,out) "raq ,ta#e: "all Street Journal: 1; O&tober 2>12?
112
&ashi+a, al-ush, Arbat $ast, &et#ata, Pirmam and ara Han.eer (Kurdistan)
"n 0ovember 2>11 %''on/obil be&ame t)e first oil major to sin an oil an as e'ploration &ontra&t =it) t)e uristan Reional .overnment R.7: 62< in a eal t)at in&lues si' e'ploration areements ?625 T)e si' blo&#s in t)e &ontra&t in&lue Bas)iqa an al-Fus): lo&ate on t)e sout)-=estern borer of R.-&ontrolle territoryN Arbat %ast: lo&ate in t)e @aros /ountain area near t)e "ranian borerN Bet=ata an (irmam: nort)-east of %rbilN an Fara Canjeer: =)i&) spans t)e borer bet=een t)e R. an ispute areas in ir#u#?63> Before move: lare631international &ompanies "O!s7 fraine%''on/obil from sininmae ealst)is =it) t)e R. be&ause: as oil of O&tober 2>12: t)e )a R.reremaine lo&#e in a feu =it) t)e "raqi &entral overnment in Ba)a over lan an oil ri)ts? T)ree of t)e blo&#s in&lue in t)e %''on/obil-R. &ontra&ts are in areas ispute by t)e R. an Ba)a? 62; T)e 4inancial /imes =rote at t)e time of t)e sinin t)at t)e eal &oul prove a &atalyst for oil evelopment in uristan: 632 an inee: as of 0ovember 2>12 several firms - Total?: !)evron an .aEpro m - )a floute Ba)as =is)es an sine &ontra&ts =it) t)e R.?633 Ira' 0il !e1ort quote an "raqi offi&ial in O&tober 2>12 as sayin t)at t)e &ompany )a
spent some=)ere bet=een G2>> million an G25> million in uristan so far? Over t)e &ourse of t)e &ontra&ts: %''on &ommitte to a &umulative G5>> million =or# plan: =)i&) in&lues rillin five e'ploration =ells in at least five of t)e si' blo&#s: an t=oimensional 2*7 seismi& testin in t)e four blo&#s t)at )ave yet to unero t)e pro&ess? T)e Bas)iqa an al-Fus) )a unerone 2-* seismi& testin before %''on too# &ontrol: a&&orin to Ira' 0il !e1ort: an rillin is to start t)ere first? An "raqi offi&ial tol t)e =ebsite t)at %''on/obil =oul Istart movin irt in *e&ember P2>12QI? 634 As a result of its &ontra&ts =it) t)e R.: t)e "raqi /inistry of Oil e'&lue %''on/obil from its fourt) li&ensin roun for oil &ontra&ts: )el in /ay 2>12?635
Other activities Water /n.ection Pro.ect
Abul /a)y al-Ameei of t)e (etroleum !ontra&ts an i&ensin *ire&torate (!*7 announ&e in April 2>1> t)at %''on/obil )a been pi&#e to lea a multibillion-ollar =ater inje&tion proje&t alon =it) ot)er international oil &ompanies "O!s7 =it) &ontra&ts in sout)ern "raqi oilfiels?636 T)e =ater inje&tion proje&t aims to provie =ater to maintain reservoir pressure: an t)ereby improve oil re&overy: in fiels su&) as Ru62< %''ons uristan move set to trier raft of oil merers: /elegra1h 13 0ovember 2>11? 63> %''on to start rillin in ispute uris) blo&#s: Ira' 0il !e1ort: 1; O&tober 2>12? 631 "raq !riti&iEes %''on /obil on uristan Oil (ursuits: *e& .ork /imes 12 0ovember 2>11? 632 %''on sins ur e'ploration &ontra&ts: 4inancial /imes: 1> 0ovember 2>11? 633 "raqi .overnment an uristan at Os Over Oil (rou&tion: *e& .ork /imes: 14 0ovember 2>12? 634 %''on to start rillin in ispute uris) blo&#s: Ira' 0il !e1ort: 1; O&tober 2>12? 635 "raq !onfirms 4t) Oil Bi Roun $or /ayN %''on %'&lue: 3/raders 1< April 2>12? 636 %''on/obil to lea "raq =ater inje&tion proje&t: Bloomberg Business "eek: 4 /ar&) 2>1>?
113
maila: est Furna ()ases 1 an 2: @ubair an /ajnoon? After isputes over &osts elaye t)e proje&t for mont)s: t)e "raqi overnment an t)e oil &ompanies &ame to an areement in O&tober 2>11 to buil t)e plant? 63 Al-Ameei sai t)e proje&t =oul pro&ess some 1> to 12 million barrels of =ater a ay from t)e (ersian .ulf for inje&tion into t)e oil fiels: =it) t)e proje&t ta#in t=o to t)ree years: rampin up as t)e sout)ern oil fiels in&rease prou&tion?63; But %''on/obil =as =as remove from t)e proje&t in $ebruary 2>12? *)iya afaar: )ea of t)e state-run ,out) Oil !ompany ,O!7 sai t)e removal of %''on from leaers)ip of t)e proje&t =as not &onne&te =it) t)e &ompanys uris) eals: an instea blame6312 Bloomber reporte t)at t)e ,O! )a a=are !C2/ Cill a G1> million &onsultan&y &ontra&t to ta#e part in t)e proje&t: effe&tively repla&in %''on/obil?64> aafar sai t)e ,out) Oil !ompany =oul be t)e leaer of t)e proje&t? 641
0a@prom Type
(ubli&imite!ompany
Traeas
RT,.A@(,%O.@*
$oune
1<;<642
Ceaquarters ey people
/os&o=:Russia Di&tor @ub#ov !)airman7: Ale'ei /iller Di&e-!)airman an !%O7
Revenue
+,G11?6billion2>117
0et"n&ome
+,G31?billion2>117
Totalassets
+,G3>2?6en2>11 7642
%mployees ebsite
3<3:>>>2>127
642 642
642
===?aEprom?&om
0lobal snapshot /os&o=-base is primarily in t)e operation as pipeline systems an as supply .aEprom to %uropean &ountriesenae but is also involve in oilofprou&tion an refinin a&tivities? "n 2>12 .aEprom =as t)e se&on larest oil &ompany in t)e =orl by 63 "raq: Oil /ajors Aree To Buil Oil $iel ater "nje&tion (lant: "all Street Journal: 1< O&tober 2>11? 63; %''on ,pear)eas "raqi ater-"nje&tion (roje&t: !ig#one quotin %o& Jones: 1> April 2>1>? 63< "raq see#s firms to manae oilfiel =ater inje&tion: !euters: 14 /ay 2>12? 64> "raq A=ars !C2/ ater-"nje&tion Oil (roje&t: Repla&in %''on: Bloomberg: 1> O&tober 2>12? 641 "raq &)ooses =ater &ontra&tor: Al Ba&aba: 11 O&tober 2>12? 642 .aEprom: 4orbes: retrieve 1< *e&ember 2>12?
114
prou&tion643 an t)e =orls fifteent) larest publi&ly liste &ompany? 642 "t =as also t)e =orls larest as prou&er: =it) averae aily prou&tion stanin at per&ent an former Russian presient *mitri /eveev previously o&&upie t)e post of .aEprom Boar !)airman?646 "n total t)e &ompany operates aroun > fullyo=ne subsiiaries: in&luin one =)ose s)are)oler &ommittee !)airman is former .erman !)an&ellor .er)ar ,&)roer? "n aition .aEprom also o=ns a ban#: ne=spapers: raio stations: television stations: film stuios: &inemas an real estate?64 .aEprom a&&ounts for 1; per&ent of t)e =orls as reserves: > per&ent of Russian as reserves an 15 per&ent of lobal as prou&tion? "n 2>11 .aEprom also presie over 161:>> #ilometres #m7 of as pipelines: t)e larest as transportation system in t)e =orl?64;
0a@prom operations in Iraq #istory T)e beinnin of .aEproms =or# in "raq =as mar#e by t)e &ontra&ts sine in 2>>
Activities and contracts &adra
"n 2>><: urin "raqs se&on post-=ar li&ensin roun: .aEprom parti&ipate in a &onsortium also involvin oas: (etronas: an T(AO =)i&) =on a &ontra&t to evelop t)e Bara oilfiel in sout)-east "raq? .aEprom )ols a 4> per&ent sta#e in t)e &onsortium: =it) oas )olin anot)er 3> per&ent: (etronas 2> per&ent an T(AO a furt)er 1> per&ent?64< "n *e&ember 2>>< Boris @ilbermints: t)e *eputy !)ief %'e&utive for %'ploration an (rou&tion of .aEprom 0eft: t)e oil arm of .aEprom: sai t)at t)e &ompany =oul invest G2 billion in evelopin Bara an t)at t)ey e'pe&te to pump t)e first 643 T)e orls 25 Biest Oil !ompanies: 4orbes: 16 uly 2>12? 644 .aEprom OAO: !euters: retrieve 1> O&tober 2>11? 645 Russias enereti& enima: /he )conomist: 6 O&tober 2>>5? 646 .aEprom reports quarterly profits of G16bn: /he uardian: 3> Auust 2>11? 64 "n T)rall to .as T)e !ity )ere .aEprom "s in: S1iegel 0nline: 2 /ar&) 2>11? 64; Annual Report 2>1>: a#1rom: retrieve 1> O&tober 2>11? 64< "raq sins eal =it) .aEprom roup for Bara): !euters: 2; anuary 2>1>?
115
&rue from t)e fiel =it)in t)ree years? 64< "n /ay 2>11 .aEprom 0eft announ&e t)at a 3* seismi& survey )a been &omplete at t)e Bara eposit: &arrie out by t)e "raqi Oil %'ploration !ompany O%!7? T)e survey =as intene to ive a better unersta nin of t)e stru&ture of t)e eposit an to ai =it) t)e assessment of reserves? 65> "n 0ovember 2>11 t)e &ompany announ&e t)ey )a &ommen&e rillin at t)e first appraisal =ell at Bara an t)at t)ey e'pe&te to start &ommer&ial prou&tion of 15:>>> barrels per ay bp7 at t)e fiel in Auust 2>13?651 0armian and Shakal (Kurdistan)
"n Auust 2>12 .aEprom 0eft be&ame t)e t)ir oil major follo=in moves by %''on/obil an Total7 to &on&lue eals =it) t)e semi-autonomous uristan Reional .overnment R.7 =)en it sine t=o &ontra&ts for t=o of t)e sout)ernmost e'ploration blo&#s in t)e reion: t)e .armian an ,)a#al blo&#s? Ira' 0il !e1ort &onsiers t)at majors su&) as .aEprom =ere embolene by %''ons move: =)en it sine &ontra&ts ire&tly =it) t)e R.: &onsiere illeal by t)e &entral overnment: puttin at ris# substantial prou&in assets in t)e ,out)? $urt)ermore t)e ,)a#al blo&# e'tens into areas t)at are internationally re&onise as ispute territories bet=een t)e &entral an reional aut)orities? At t)e .armian blo&#: .aEprom too# a 4> per&ent sta#e: =)ile !anaian &ompany estern@aros an t)e R. retaine sta#es of 4> per&ent an 2> per&ent respe&tively? On&e t)e e'ploration is &omplete operator? Atits ,)a#al .aEprom be&ame t)e p)ase operator =it) an ;>.aEprom per&ent =ill sta#ebe&ome an t)et)e R. retaine 2> per&ent sta#e?652 "n 0ovember 2>12 t)e BB! reporte t)at t)e "raqi overnment =as pressurin .aEprom to ive up t)eir oil eals in uristan or fa&e losin t)eir &ontra&t for t)e sout)ern Basra fiel?653 "n an intervie= =it) Ira' 0il !e1ort, *eputy (rime /inister for %nery Cussein ,)a)ristani &ommente t)at t)e &ompany =ill be for&e to e&ie bet=een t)eir &ontra&ts in t)e nort) an t)e sout): just as %''on/obil )a?654
0enel +ner5y Type Traeas
(ubli&imite!ompany ,%.%0
$oune
2>11
Ceaquarters
An#ara:Tur#ey
65> .aEprom 0eft &ompletes seismi& survey in "raq: a#1rom *eft: 1 /ay 2>11? 651 .aEprom 0eft to bein oil output in "raq in 2>13: !euters: 25 0ovember 2>11? 652 .aEprom ma#es uristan entran&e: ris#in Bara: Ira' 0il !e1ort: 25 0ovember 2>11 653 "raq pressures Russias .aEprom to quit uristan: BBC: < 0ovember 2>12? 654 F8A Cussain al-,)a)ristani: Ira' 0il !e1ort: 1; *e&ember 2>12?
116
ey (eople
Tony Cay=ar !%O7: /e)met ,epil (resient7655
Revenue
+,G24million2>11 7656
0et"n&ome
+,G2?6million2>11 7656
TotalAssets
+,G4billionen2>11 7656
Total %quity
+, G3?;4 billion en 2>117
%mployees
Over5>>2>117
ebsite
656
65
===?enelenery?&om
0lobal snapshot .enel %nery pl& is in&orporate in ersey an )as offi&es in t)e +: Tur#ey an uristan? "t =as forme follo=in t)e merer of Dallares (! an .enel %nery "nternational imite in 0ovember 2>11? T)e &ompanys primary assets are oil an as li&enses lo&ate in t)e uristan reion of "raq? 65; T)e &ompany enaes in e'ploration: appraisal: evelopment an prou&tion of oil fiels an )as over 5>> ire&t an se&one employees lo&ate in t)e uristan reion an An#ara?65; .enels !%O is Tony Cay=ar: former )ea of Britis) B(? T)e &ompanys presient /e)met ,epil &ommente to t)e *e& .ork /imes in 2>12 t)at LTony is runnin t)e =)ole &ompany? " am )elpin )im =it) t)e politi&s ] to unerstan t)e reion?K65< At t)e en of 2>11 .enel )el 412 million barrels of 2( reserves an )a an averae aily prou&tion over t)e year of 42:>>> barrels per ay bp7?66>
0enel operations in Iraq #istory Before t)e merer =it) Dallares in 2>11: .enel %nery =as a private Tur#is) &ompany uner t)e &ontrol of /e)me ,epil? "n 2>>2: =)ile =or#in as a &ontra&tor in uristan ,epil =as approa&)e by alal Talabani: uris) politi&ian an later presient of "raq: about evelopin t)e Taq Taq oil fiel? ,epil bean rillin at Taq Taq an also too# sta#es in ot)er uris) fiels? 65< T)e (rou&tion ,)arin !ontra&t (,!7 for e'ploitation of t)e (,! =as reinstate an sine by t)e R. an .enel %nery "nterna655 /essae enel )nergy, retrieve 1< *e&ember 2>11 656 Annual Report an A&&ounts 2>11: enel )nergy, 2>11? 65 About +s enel )nergy: 22 0ovember 2>11? 65; About +s enel )nergy: retrieve 1< *e&ember 2>11 65< Tony Cay=ar .ets Cis ife Ba&# *e& .ork /imes: 1 ,eptember 2>12? 66> Annual Report an A&&ounts 2>11: enel )nergy, 2>11?
11
tional imite in 2>>4?661 T)e merer an e'pansion follo=e an by 2>12 .enel &ame to be t)e leain oil prou&er in uristan: prou&in 4>:>>> barrels per ay bp7 in 2>12? 662 T)e &ompany =as also e'pe&te to brin on stream 4 billion &ubi& metres b&m7 per year of as from its uristan fiels by 2>15? 663 Co=ever e'portin t)e oil prou&e )as &ause problems be&ause of sporai& isputes bet=een t)e urs an Ba)a over pipelines? A&&orin to Tony Bu&#in)am: founer of Ceritae Oil: be&ause .enel are so )eavily ientifie =it) t)e R.s enery poli&y as it is: =)en it ma#es eals =it) t)e R. it oes not &onstitute su&) a Islap in t)e fa&eI to Ba)a as t)ose sine by !)evron an %''on/obil: for e'ample?662
Activities and contracts "a+ "a+ and "a#ke (Kurdistan)
.enel )as sta#es in t=o 1roducing oil fiels in uristan? "t )ols a 44 per&ent =or#in interest in t)e Taq Taq fiel 664 prou&in <>:>>> barrels per ay as of 0ovember 2>117665 an a 25 per&ent =or#in interest in t)e Ta=#e li&en&e areas: )avin a&quire t)e latter in /ar&) 2>>12 t)ese fiels )a estimate proven an probable 2(7 reserves of 1?4 billion barrels bbl7 of oil an probable an possible reserves of 1?< billion barrels oilay equivalent? T)ebot) &ompany is taretin 14>:>>> barrelsofper bp7 from fiels by 2>14? 666 to a&)ieve total oil output of &er &ahr, %ohuk, Miran and 1hi Surkh (Kurdistan)
.enels e51loration interests lie in t)e Ber Ba)r: *o)u#: /iran an !)ia ,ur#) li&ense areas: all a&quire over t)e &ourse of 2>>12 .enel announ&e a series of a&quisition eals amountin to aroun +, G;6> million =it) t)e aim of strent)enin its position in uristan ? 66 T)e &ompany mae a eal =it) Britis) Ceritae Oil to in&rease its sta#e in t)e /iran blo&# to 51 per&ent ? 66; an analysts at *euts&)e Ban# sueste t)at t)e eal =oul eventually lea to it buyin t)e remainer of Ceritaes interests in /iran?66< "n t)e same mont) .enel also a&quire an aitional 21 per&ent sta#e in t)e Bina Ba=i blo&# in t)e &entre of t)e reion from Ca=ier %nery?6> 661 R. /inistry of 0atural Resour&es (rou&tion ,)arin !ontra&ts: +urdistan !egional overnment : retrieve 5 *e&ember 2>12?
662 Tur#eys .enel %nery Ta#es .amble in "raq: 0il Price: 23 Auust 2>12? 663 uristan eyes major role in Tur#is) as mar#et: Petroleum )conomist: 13 *e&ember 2>12? 664 !ompany (rofile: enel )nergy, retrieve 3> 0ovember 2>11? 665 Tony Cay=ar moves into uristan =it) .enel %nery as tensions rise: /elegra1h, 1 0ovember 2>11? 666 Operations - uristan Reion: enel )nergy: retrieve 5 *e&ember 2>12? 66 Tony Cay=ar .ets Cis ife Ba&# *e& .ork /imes: 1 ,eptember 2>12? 66; Tur#eys .enel %nery Ta#es .amble in "raq: 0il Price: 23 Auust 2>12? 66< Ceritae re&eives G45>m .enel boost 4inancial /imes: 21 Auust 2>12? 6> .enel %nery "n&reases ,ta#e in Bina Ba=i: Ira' Business *e&s: 6 Auust 2>12?
11;
T)e oil prou&e by .enel t)at &annot be e'porte oes to uris) refineries for a pri&e of about G6> per barrel: =ell belo= t)at a&)ieve on =orl mar#ets? Co=ever a&&orin to t)e *e& .ork /imes as of 2>12 .enel =as still eneratin most of t)e &as) neee to pay for its G2>>-G25>-million-a-year e'ploration an evelopment proram in uristan? "t =as also reporte to be sittin on about G1 billion for a&quisitions?66
6erita5e Oil Type
(ubli&imite!ompany
Traeas
,%CO"
$oune
1<<261
Ceaquarters
ersey
ey (eople
/i&)ael Cibber !)airman7: Tony Bu&#in)am !%O7
Revenue
+,G117
0et"n&ome
+,G66?11
%mployees
13<en2>11 764
ebsite
===?)eritaeoilpl&?&om
62 63
0lobal snapshot Ceritae Oil is an oil an as e'ploration an prou&tion &ompany liste on t)e Toronto an onon sto&# e'&)anes? T)e &ompany o=ns prou&in assets in Russia: e'ploration proje&ts in t)e uristan reion of "raq: t)e *emo&rati& Republi& of !ono: /alta: (a#istan: TanEania an /ali: as =ell as an investment in ibya?65 T)e &ompany =as foune in 1<<2 an =as initially forme to )ol interests in offs)ore Anola? "n 1<< it =as a=are interests in ons)ore !ono an =ent on to is&over t)e /Bouni $iel in 2>>1: =)i&) brou)t substantial ains? 63 A&&orin to t)e +s Inde1endent ne=spaper: Ceritae )as a )istory of movin early into unstable: oilri&) reions t)at pose sinifi&ant person al an operational ris#s: su&) as +ana an uristan? T)e &ompany =as t)ou)t to be t)e first forein oil &ompany to enter ibya after t)e 2>11 uprisin =)en it announ&e it )a a&quire small Ben)aEi-base ser vi&es &ompany ,a)ara for G111?66 61 Annual Report 2>12: Heritage 0il, 2>12? 62 Annual Report 2>12: Heritage 0il, 2>12? 63 2>1> Annual Report: Heritage 0il: 2>11? 64 Ceritae Oil: .ahoo@ 4inance: 2>11? 65 About Ceritae: Heritage 0il: retrieve 22 *e&ember 2>11? 66 Ceritae plants + fla in ibya =it) ta#eover of ,a)ara Oil: Inde1endent: 5 O&tober 2>11? ibyan aut)orities later enie t)at t)e sale )a ta#en pla&e?
11<
6erita5e Oil operations in Iraq #istory Ceritaes a&tivity in "raq bean in 2>>: =)en it be&ame one of t)e first &ompanies to sin a (rou&tion ,)arin !ontra&t (,!7 =it) t)e semi-autonomous uristan Reional .overnment R.7?6
Activities and contracts Miran (Kurdistan)
Ceritae entere into a (,! =it) t)e R. on 2 O&tober 2>> for t)e /iran Blo&# 6; in t)e sout) of uristan? Ceritae announ&e in April 2>>< t)at Anlo-Tur#is) .enel %nery )a entere t)e /iran Blo&# as a t)ir party parti&ipant: 6< )olin a 25 per&ent parti&ipatin interest in t)e li&ense =)ile Ceritae: t)e operator: )el t)e remainin 5 per&ent?6;> Ceritae announ&e in early 2>11 t)e is&overy of a lare as fiel =it) t)e /iran est-2 =ell =)i&):6;1 &ontainin up to 12?3 trillion &ubi& feet of as: 6;2 it believes to be t)e larest as fiel to be is&overe in "raq in t)e last 3> years? T)e &ompany )as a 5 per&ent =or#in interest in t)e /iran Blo&#: t)ou) t)e R. )ave a ba&#-in ri)t =)ereby t)e R. &an &)oose to parti&ipate in a proje&t on&e t)e &ontra&tor )as re&overe t)eir &osts7? "f e'er&ise: t)is &oul reu&e CeritaeMs interest to 56?25 per&ent? T)e first e'port prou&tion from t)e /iran Blo&# is tarete for 2>15 usin planne reional infrastru&ture: a&&orin to t)e &ompanys 2>1> Annual Report?6;1 Co=ever in Auust 2>12 Ceritae move to sell some of its assets in t)e uristan reion in orer to free up finan&es for a proje&t in 0ieria? Ceritae is ue to re&eive +, G156 million for transferrin its 26 per&ent interest in t)e /iran as fiel to .enel %nery: as =ell as a furt)er G2<4 million loan =)i&) it &an reeem t)rou) t)e transfer of its remainin 4< per&ent interest?6;3
6unt Oil Type $oune
(rivate 1<346;4
6 Operations - "raq: Heritage 0il: retrieve 5 *e&ember 2>12? 6; Ceritae 0otes R.s T)ir (arty 0ominee in /iran i&ense: !ig#one < April 2>>11? 6;> Ceritae 0otes R.s T)ir (arty 0ominee in /iran i&ense: !ig#one, < April 2>>1> Annual Report: Heritage 0il, retrieve 1 *e&ember 2>11? 6;2 /ajor .as $iel $oun in uristan: +! !e1resentation in S1ain, 2; anuary 2>11? 6;3 Ceritae re&eive G45> million .enel boost: 4inancial /imes: 21 Auust 2>12? 6;4 T)e Cunt $amily of !ompanies: Hunt 0il: retrieve 2< /ar&) 2>12?
12>
Ceaquarters ey(eople
*allas:Te'as+,7 RayCunt!%O
6;4
76;5
Revenue
+,G4billion2>11 76;6
%mployees
4:>>en2>11 76;6
ebsite
===?)untoil?&om
0lobal snapshot Cunt Oil =as foune in 1<34: reportely =it) C?? Cunts po#er =innins? 6; Toet)er =it) its subsiiaries t)e &ompany enaes in oil an as e'ploration an prou&tion in 0ort) Ameri&a: ,out) Ameri&a: %urope: Australia: an t)e /ile %ast? "t also enaes in t)e &onstru&tion an operation of liquefie natural as 0.7 proje&ts in 9emen an (eru?6;; T)e &ompany is )eaquartere in *allas: Te'as an operates as a subsiiary of Cunt !onsoliate "n&? "n 2>11 $orbes maaEine ran#e Cunt !onsoliate in <>t) pla&e on t)eir annual list of Ameri&as larest private &ompanies? Cunt Oil is t)e umbrella &ompany for several subsiiaries: but )as no affiliation or o=ners)ip interest in Cunt (etroleum an its affiliate &ompanies: =)i&) ZTO %nery a&quire in 2>>;? 6;<
6unt Petroleum operations in Iraq #istory T)e &ontra&ts sine by Cunt in 2>> mar# t)e beinnin of Cunts operations in "raq?
Activities and contracts Ain Sifni (Kurdistan)
T)e prou&tion s)arin &ontra&t (,!7 sine by Cunt in ,eptember 2>> =as t)e first to be sine =it) t)e uristan Reional .overnment R.7 sin&e t)e ena&tment of t)e Oil an .as a= of t)e uristan Reion in Auust 2>>? Cunt entere into t)e 6<> in uristans *o)u# area: &ontra&t: =)i&) &overe petroleumase'ploration a&tivities =it) "mpulse %nery !orporation its junior partner? Cunt an "mpulse ea&) )el 5> per&ent =or#in interests in t)e Ain ,ifni blo&# as of mi-2>11? 6<1 "n uly 2>11: on-
6;5 ,ele&te Representatives: Hunt 0il: retrieve 2< /ar&) 2>12? 6;6 ^<> Cunt !onsoliateCunt Oil: 4orbes: retrieve 2< /ar&) 2>12? 6; Cunt !onsoliate "n&? !ompany (rofile: .ahoo 4inance: retrieve 2< /ar&) 2>12? 6;; !ompany Overvie= of Cunt Oil !ompany: Bloomberg: retrieve 2< /ar&) 2>12? 6;< ^<> Cunt !onsoliateCunt Oil: 4orbes: retrieve 2< /ar&) 2>12? 6<> R. sins oil an as &ontra&t =it) +,-base Cunt Oil: +!, Retrieve >; ,eptember 2>>? 6<1 Oil 8 .as J "nternational %8(: Scotia Ca1ital April 2>1>?
121
on-base oil &ompany Afren bou)t a 2> per&ent sta#e in t)e fiel? Cunt: as t)e fiels operator: retaine 6> per&ent an t)e R. a 2> per&ent sta#e in t)e fiel?6<2 ea#e +, iplomati& &ables note t)at t)e +, overnment is&ourae &ompanies from sinin oil eals =it) t)e R. until "raq )a ena&te its reional )yro&arbons la=? Co=ever a senior Cunt manaer tol a +, offi&ial in %rbil t)at t)e areas )i) potential for oil prou&tion ItrumpeI t)e ris#s an leal ambiuities asso&iate =it) its involvement in a ispute territory su&) as nort)ern 0ineve)? 6<3
Inpe# Type Traeas
(ubli&imite!ompany T9O16>5
$oune
1<416<4
Ceaquarters
To#yoapan7
ey (eople
0ao#i uroa !)airman7: Tos)ia#i itamura (resient76<5
ebsite
===?inpe'?&o?jp
0lobal snapshot
To#yo-base "npe' "nternational (etroleum %'ploration !orporation7 is a )olin &ompany establis)e t)rou ) t)e reoranisation of "0(%Z !orp an Tei#o#u Oil? T)e &ompany manaes subsiiaries t)at e'plore: prou&e an sell oil an natural as? 6<6 "n 2>12 "npe' )a over > proje&ts in 26 &ountries? T)is in&lues proje&ts in "nonesia: Australia: AEerbaijan an "raq an )as a ro=in fo&us on iquefie 0atural .as 0.7?6<6
Operations in Iraq History 6< "n 2>>; "npe' =as in&lue onfollo=in t)e list ofyear? 35 &ountries =)i&) t)e &ountrys first li&ensin roun t)e "n 2>1> "npe'pre-qualifie =as part of afor&onsortium of apanese firms =)i&) =ere neotiatin a eal =it) t)e state-o=ne ,out) Oil !ompany for t)e evelopment of t)e 0asiriya) fiel? Co=ever t)e tal#s faile to rea&) a
6<2 Afren raises _113 million for uristan a&quisitions: Proactive Investors 2; uly 2>11? 6<3 Cunt Oil ,ins Areement it) r +ner r Oil a=: "ikileaks, 12 ,eptember 2>>? 6<4 Cistory In1e5: retrieve 5 *e&ember 2>12? 6<5 "npe' !orp Bloomberg: retrieve 5 *e&ember 2>12? 6<6 !ompany (rofile In1e5: retrieve 5 *e&ember 2>12? 6< Oil /inistry Announ&es Fualifi&ation Results: "ikileaks: 15 April 2>>;?
122
&on&lusion?6<6
Activities and contracts &lock *2
"n "raqs fourt) li&en sin roun in 2>12: "npe' sine a eal to e'plore an area &over in t)e reions of /ut)anna an *)i Far in ,out)ern "raq? T)eir partner in t)e eal =as Russian u#oil an toet)e r t)e t=o firms must invest at least G1>> million to e'plore a 5:5>>fee square-#ilometre blo&#:6<;uner t)e terms of t)e &ontra&t? T)e aree remuneration =as G5?<< per barrel?
>apan Petroleum +#ploration Company >ape#! Type
(ubli&imite!ompany
Traeas
T9O1662
$oune
1<55
Ceaquarters
To#yoapan7
ey (eople
Osamu atanabe (resient!%O7
Revenue
+,G2?4billion2>11 76<<
0etin&ome V&)aneonpreviousyear
+,G12>?6million2>117 -44?2V
6<<
6<<
TotalAssets
+,G6?2billionen2>11 7 6<<
%mployees
1:2;en2>11 76<<
ebsite
===?jape'?&o?jp
0lobal snapshot ape' To#yo-base oile'&)ane &ompanysin&e establis)e private &ompany in operatin 1<> an traeisona t)e To#yo sto&# 2>>3? >> as T)ea &ompanys prin&ipal areas are: omesti&ally: Co##aio: A#ita: 9amaata an 0iiata in apan: an overseas: !anaa: t)e +nite ,tates: "ran: "raq: "nonesia: !)ina: t)e ()ilippines: Russia an ibya?>1 6<; "raq seals oil e'ploration eal =it) u#oil: "npe': (iddle )ast 0nline: 0ovember 2>12? 6<< Annual Report 2>11: Ja1e5: retrieve 1< *e&ember 2>12? >> About ape': Ja1e5: retrieve 1; *e&ember 2>12? >1 ape' $inan&ial Analysis Revie=: Com1anies and (arkets, 4 $ebruary 2>1>?
123
T)e apanese overnment o=ns a 34 per&ent s)are in ape': =)i&) in 2>11 )a prove reserves of 22 million barrels of oil equivalent boe7?>2 "n ,eptember 2>11 t)e apanese overnment state it =as &onsierin sellin its sta#es in ape' in orer to use t)e funs for re&onstru&tions of t)e nort)-eastern areas of t)e &ountry t)at =ere evastate by t)e /ar&) 2>11 eart)qua#es an tsunami? T)e sta#es: =)i&) =ere )el in a spe&ial a&&ount: =ere =ort) at t)e time appro'imately ` >> billion in investments oil an as-relate evelopments?>3
>ape# operations in Iraq #istory
ape'Ms relations)ip =it) t)e "raqi /inistry of Oil ates ba&# to /ar&) 2>>5 =)en t)ey bean to &onu&t evaluation stuies of unevelope oil fiels jointly =it) t)e /inistryMs enineers? ,in&e 2>> ape' )as =or#e =it) more t)an 45> trainee enineers ispat&)e from t)e /inistry of Oil? "n 2>>; ape' supplie 3* seismi& survey equipment an soft=are for t)e /inistryMs surveys of t)e .arraf oil fiel?>4
Activities and contracts 0arraf
Toet)er =it)t)e /alaysian (etronas: ape' sine a is&ontra&t in to 2>>< to e'plore an prou&e oil from .arraf oil fiel? T)e &onsortium e'pe&te invest up to G; billion >5 in t)e fiel an =ill be pai a remuneration fee of G1?4< a barrel uner t)e 2>-year lon servi&e &ontra&t?>6 ape' =ill )ol a 3> per&ent sta#e: (etronas a 45 per&ent sta#e an "raqMs ,out) Oil !ompany ,O!7 =ill )ol t)e remainin 25 per&ent sta#e in t)e fiel?> "n $ebruary 2>11: !euters reporte t)at state-o=ne apan Oil: .as an /etals 0ational !orporation O./%!7 =oul provie about G1<; million of &apital to t)e evelopment of t)e .arraf oil fiel proje&t? "n return: O./%! =oul ta#e a sta#e of less t)an 5> per&ent in ape' =)olly o=ne subsiiary: >; ape' .arraf imite?>< -
>2 ape' !ompany (rofile :.ahoo 4inance: retrieve 25 *e&ember 2>11? >3 apan .overnment /ulls ,ellin ,ta#es "n "npe': ape' $or Fua#e Re&onstru&tion - Report: 4o5 Business : 6 ,eptember 2>11? >4 Annual Report 2>>; Ja1e5, retrieve 25 *e&ember 2>11? >5 "raq (etronas an ape' sin eal for .)arraf oil fiel: )nergy1edia *e&s: an 1;: 2>1> >6 "raq: (etronas: ape' in .)araf oilfiel a&&or: /he Saudi a#ette, retrieve 25 *e&ember 2>11? > A(%Z: (etronas to evelop "raq oil fiel: A() Info, 2> anuary 2>1>? >; apans O./%! to invest in .)arraf Oilfiel: Ira' Business *e&s, 11 $ebruary 2>11? >< "nternational %'ploration an (rou&tion "raq: Ja1e5, retrieve < anuary 2>11?
124
8a@*unai0as 8*0! Type Traeas
,tate-o=ne A,%R*.@ ,%/./. %(7
$oune
2>>2
Ceaquarters
Astana:aEa#)stan
ey people
iinovyaEEat etebaevi&) 1> !)airman7
%mployees
>:1212>117
ebsite
11
===?#m?#E
0lobal snapshot aE/unai.as /.7 is 1>> per&ent o=ne by t)e overnment of aEa#)stan t)rou) t)e national =elfare fun ,amru#-aEyna: an entity seen by !euters as an e'tension of t)e overnment?12 "t is t)e o=ner of 44 ons)ore oil an as fiels in t)e /anistau an Atyrau reions of aEa#)stan an in 2>11 a&&ounte for 65 per&ent of all oil transportation: 1>> per&ent of as transportation an 5> per&ent of tan#er transportation in aEa#)stan?13 T)e state stratei& oal of /. %( up to 2>2< is to be&ome one of t)e =orls top 2> oil an as &ompanies?14 One of t)e prin&ipal subsiiaries of /. is aE/unai.as %'ploration an (rou&tion /. %(7: establis)e in 2>>4 follo=in t)e merer of +Eenmunaias ,! +/.7 an %mbamunaias ,! %/.7? T)e &ompanys s)ares are liste on t)e aEa#)stan ,to&# %'&)ane A,%7 an its lobal epositary re&eipts .*Rs7 on t)e onon ,to&# %'&)ane ,%7? /. %( is t)e aEa#)stans se&on larest oil prou&er: )o=ever in 2>1> t)e Boar of *ire&tors approve t)e !ompany s parti&ipation in several proje&ts out sie aEa#)stan? T)ese in&lue t)e )ite Bear proje&t in t)e 0ort) ,ea an a tener to evelop t)e A##as fiel in "raq?14 A&&orin to an analysis by !euters: /. )a a I)i)ly leveraeI finan&ial profile in 2>12: =it) lare ebt ue to lare &apital e'penitures to uprae refineries an t)e as)aan fiel: in =)i&) it )as a 16?; per&ent sta#e? 12 At t)e en of 2>11 /. %(s proven oil reserves 1(7 stoo at 561 million barrels: =it) proven plus probable plus possible reserves at 1?<6 billion barrels bbl7? (rou&ti on over t)e year =as15 5; million barrels: ivin an averae aily prou&tion of 15;:<>4 barrels per ay bp7? 1> /anaement Boar: +a#(unaias: retrieve 1< *e&ember 2>12? 11 aE/unai.as (arti&ipant "nformation: U* lobal Com1act: retrieve < *e&ember 2>11? 12 T%ZT-,8( summary ,! 0! aE/unay.as: !euters: 3> 0ovember 2>12? 13 aE/unai.as O8. !ompany e' )ea airely abylin appointe )ea of aETransOil: /engri *e&s: 11 O&tober 2>11? 14 Annual Report 2>1>: +a#(unaias: 25 /ar&) 2>11? 15 Resour&es Assesment: Bloomberg: 16 April 2>12?
125
8a@*unai0as operations in Iraq #istory "n *e&ember 2>1> t)e Boar of *ire&tors of /.s %'ploration an (rou&tion subsiiary /. %( approve t)e !ompanys parti&ipation in a tener to evelop t)e A##as fiel in "raq ?14 Co=ever after later pullin out of t)e t)e &ontra&t for t)e A##as fiel: /. =as not parti&ipatin in any proje&ts in "raq as of *e&ember 2>11?
Activities and contracts Akkas
Alon =it) orean oas: aE/unai.as =on t)e ri)ts to evelop t)e A##as fiel urin "raqMs t)ir enery biin roun in O&tober 2>1>? +ner t)e terms of t)e bi: oas =as t)e operator of t)e proje&t an t)e propose remuneration fee =as G?5> per barrel of oil equivalent boe7 prou&e?16 A&&orin to /. %(s !%O: t)e ne= proje&t =oul be of benefit to t)e &ompanys employees: =)o =oul ain important e'perien&e in t)e area of as fiel evelopment: iven t)at t)eir spe&ialists )a not been fully enae in as prou&tion in t)e past: ot)er t)an =it) asso&iate as ? 1 "n /ay 2>11 )o=ever aE/unai.as pulle out of t)e venture: leavin oas as t)e sole investor an operator an for&in t)e &ompany to ouble its s)are in t)e proje&t?1;
8o5as 8orea 0as Corporation! Type Traeas
(artiallystate-o=ne RZ>3646>
$oune
1<;3
Ceaquarters
,eonnam: .yeoni: ,out) orea
ey (eople
.an ,oo oo (resient: !%O 71<
Revenue
2> R 2;:4<3? billion2>11? appro' +, G26?6 billion7:
0et in&ome
R 14? billion appro' +, G162?< million 7: 2>11?2>
16 Biin Results Overvie= for i&ensin Roun 3: Ira' )nergy: retrieve 13 *e&ember 2>11? 1 Annual Report 2>1>: +a#(unaias: 25 /ar&) 2>11? 1; Anbar: &entral overnments poise for fi)t over A##as: Ira' 0il !e1ort: 1 une 2>1>? 1< orea .as !orporation: !euters, retrieve anuary 2>13? 2> !onsoliate $inan&ial ,tatements: +ogas: retrieve 1< *e&ember 2>12?
126
V&)aneonpreviousyear
-36?5V
2>
Total Assets
R 36:>1>?5 billion appro' +, G33?6 billion7: en 2>11?2>
Total %quity
R ;:>43?< billion appro' +, G?5 billion7: en 2>11?2>
%mployees
3:>26an2>12 721
ebsite
===?#oas?or?#r
0lobal snapshot orea .as !orporation O.A,7 =as establis)e in 1<;3 by t)e orean .overnment: =)o in 1<<< bean to privatise t)e &ompany 22? !onsequently: oas is &urrently s)are bet=een t)e ,out) orean overnm ent: =it) a 2 per&ent sta#e: an t)e state &ontrolle orea %le&tri& (o=er !orporation %(!O7 =it) 25 per&ent: =it) t)e t)e remainin equity split amon lo&al overnment an institutional investors?23 oas enaes in t)e prou&tion an istribution of natural as an in 2>11 =as t)e =orls larest importer of liquefie natural as 0.7? T)e &ompany is t)e sole provier of 0. to orea: operatin t)ree terminals an a nation=ie pipeline net=or#? T)e &ompanys business s&ope also in&lues natural as e'ploration an prou&tion: =it) as fiel evelopment proje&ts in /yanmar: !anaa: Russia: Afri&a: Australia: "nonesia: +Ebe#istan an ot)ers in 2>11? 24 "n /ay 2>1> oas revise its Arti&les of Asso&iation an reporte plans to enter into t)e ne= business of e'ploration: prou&tion an sales of &rue oil: mainly taretin "raq?25
8o5as operations in Iraq #istory !ontra&ts sine in 2>>< mar#e t)e start of oass =or# in "raq?
Activities and contracts ubair
"n 2>><:tooas forme part ofoil a &onsortium alon "raq? =it) oas fello= )ols &ompanies %niper&ent an O&&iental evelop t)e @ubair fiel in sout)ern an 1;?5 s)are: %ni )as 32?;1 per&ent: O&&iental )ols 23?44 per&ent an "raqs state-run /aysan Oil !ompany )ols t)e remainin 25 per&ent? )ile t)e &onsortium planne 21 Our (rofile +ogas: retrieve 1< *e&ember 2>12? 22 %nery profile of ,out) orea: )ncyclo1edia of )arth: 2> ,eptember 2>>? 23 ,out) orea (rofile : )nergy Information Administration: une 2>> 24 orea .as !orporation: !euters: retrieve 15 *e&ember 2>11? 25 O.A, to %mbar# on "raq Oil Business: +orea /imes: 3 /ay 2>1>?
12
to invest appro'imately G2> billion over t)e life of t)e proje&t: oas itself )as sai it plans to invest aroun G6?5 billion in t)e fiel26 &adra
$or "raqs se&on li&ensin roun: oas also forme part of a &onsortium to evelop t)e Bara oil fiel: toet)er =it) .aEprom: (etronas an T(AO? T)e relatives sta#es )el in t)e fiel are as follo=s .aEprom 4> per&ent7: oas 3> per&ent7: (etronas 2> per&ent7: T(AO 1> per&ent7 ? oas )as sai t)at it =ill invest G1?>5 billio n in t)e pro je&t: =it) t)e &onsortium as a =)ole investin a total of G3?52 billion to pump 1>:>>> barrels of oil per ay bp7?2 Mansuriyah
)en "raq laun&)e its t)ir li&ensin roun in 2>1>: oas =as favore amon 15 &ompanies invite to bi for t)e A##as: /ansuriya): an ,iba as fiels be&ause of t)eir e'perien&e in t)e inustry: an =as amon 13 &ompanies t)at reistere for t)e au&tion roun?2; Tur#eys T(AO: u=ait %nery !ompany an oas finalise eals in une 2>11 to jointly evelop t)e /ansuriya) fiel in eastern "raq: 2< =)i&) pays G per barrel of oil equivalent boe7 e'tra&te?3> Akkas
"n une 2>11 ,aba) Abel a)im: an "raqi /inistry of Oil offi&ial: state t)at t)e ministry )a sine an areement =it) oas to bein evelopin t)e A##as natural as fiel?31 But it =as not until O&tober of t)e same year t)at various elays =ere solve an a efinitive eal =as sine? 2< By une: oas )a aree to ouble its sta#e in t)e proje&t from 3?5 per&ent up to 5 per&ent: after its &onsortium partner aE/unai.as =it)re= une'pe&tely from t)e proje&t? T)e "raqi state-o=ne 0ort) Oil !ompany 0O!7 too# t)e remainin 25 per&ent ?31 T)e eal oas sine for t)e A##as fiel in O&tober 2>11 pays t)e &ompany a remuneration of G5?5> per boe e'tra&te?2< Kirkuk-&ai.i 3i3eline 3ro.ect
"n O&tober 2>1> oas =on a G12 million &ontra&t to buil a 11>-#ilometre natural as pipeline lin#in t)e "raqi &ities of ir#u# an Baiji? T)e &ontra&t foresees t)at t)e pipeline =ill be built by 2>14? 32 26 %ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel: "all Street Journal: 25 anuary 2>1>? 2 "raq sins eal =it) .aEprom roup for Bara) oil fiel: )nergy31edia ne&s: 2; anuary 2>1> 2; .as $iels Bi Roun "n "raq ,u&&ess it) Ris#: (iddle )ast )conomic Survey, 2 *e&ember 2>1>? 2< "raq in#s final eal ,oreas O.A,: .ahoo@ *e&s, 13 O&tober 2>11? 3> /ansuriya) !ontra&t Area - Biin Results: Petroleum Contracts and Licensing %irectorate, 2> O&tober 2>11? 31 O.A, *eal for A##as .as-$iel "s ,ine Ira' Business *e&s 1 une 2>11? 32 O.A, =ins G12 million pipeline proje&t from "raq: +orea /imes: 5 O&tober 2>12?
12;
8u$ait +ner5y Company Type
(rivate
$oune
2>>5
Ceaquarters
,almiya:u=ait 33
ey (eople
,ara A#bar !%O: *ire&tor7: /anssour Abou#)amseen !)airman733
Revenue 0et"n&ome V&)aneonpreviousyear
+,G1;?117
+,G34?;million2>11 734 [5;?
34
TotalAssets
+,G;;4?1million
34
Total%quity
+,G34?3million
34
%mployees
464,eptember2>117
ebsite
34
35
===?#e&?&om?#=
0lobal snapshot u=ait %nery !ompany %!7 operates as an inepenent oil an as e'ploration an prou&tion &ompany? "t enaes in t)e e'ploration: prou&tion an evelopment of oil an as reserves in t)e /ile %ast: 0ort) Afri&a an %urasia reions? !ountries =)ere %! )as operations in&lue u=ait: %ypt: 9emen: "raq: Oman: Russia an (a#istan? T)e &ompany: formerly #no= as @a)ra Oil an .as: =as foune in 2>>5 an is )eaquartere in ,almiya: u=ait? T)e &ompany operates as a subsiiary of t)e @a)ra .roup? !%O ,ara A#bar sai in 0ovember 2>11 t)at t)e planne initial publi& offerin "(O7 of t)e &ompany =as intene to )elp it in pursuin potential a&quisitions in t)e /ile %ast an 0ort) Afri&a reion?33 A&&orin to t)eir annual report: t)e &ompanys vision is to be&ome t)e pre-eminent oil an as &ompany in t)e /ile %ast: an aims to be prou&in 5:>>> barrels of oil equivalent boe7 per ay by t)e en of 2>15: =it) 4>> million barrels of oil equiavalent boe7 of prove an probable reserves?35 As of ,eptember 2>12 averae aily prou&tion stoo at 1:266 boe per ay?34
33 u=ait %nery !ompany: Bloomberg Business&eek: retrieve 15 *e&ember 2>11? 34 !orporate (rofile: +u&ait )nergy Com1any: ,eptember 2>12? 35 !ompany (rofile ,eptember 2>11: +u&ait )nergy Com1any: retrieve 15 *e&ember 2>11?
12<
8u$ait +ner5y Company operations in Iraq #istory T)e &ontra&ts sine in 2>11 =it) t)e "raqi overnment mar#e t)e beinnin of %!s operations in "raq?
Activities and contracts Siba and Mansuriyah 4as fields
"n une 2>11 t)e %! announ&e t)at it )a been a=are 2>-year as evelopment &ontra&ts for ,iba an /ansuriya) as fiels in "raqs t)ir post-=ar biin roun? T)e %! jointly bi =it) t)e Tur#is) (etroleum !orporation T(AO7 for bot) as fiels? %! be&ame t)e operator of ,iba: =it) a 45 per&ent s)are T(AO 3> per&entN stateo=ne ,out) Oil !ompany 25 per&ent7? At /ansuriya): T(AO be&ame t)e operator =it) a 3?5 per&ent majority s)are: %! 22?5 per&entN /ilan Oil !ompany 25 per&ent7?36 u=ait %nery !)airman *r /anssour Abou#)amseen &ommente on t)e eals Le are e'&ite to start toay a lon-term partners)ip =it) "raq for t)e evelopment of t)eir natural as resour&es an loo# for=ar to applyin our e'perien&e an te&)noloy to=ars builin prou&tion "raq t)atto=ars meets omesti& an e'portfor opportunities? u=ait as %nery )as beenin=or#in obtaininnees su&) &ontra&ts over t)ree years: an toay mar#s a sinifi&ant milestone for u=ait %nery?K3 &lock '
"n /ay 2>12 %! announ&e t)at t)e &onsortium it le in "raqs fourt) li&ensin roun )a been su&&essful in a&quirin e'ploration ri)ts for Blo&# < in Basra? T)e ot)er parti&ipants in t)e &onsortium =ere Tur#is) T(AO 3> per&ent7 an *ubai-base *raon Oil 3> per&ent7: =)ile %! )el an operatin 4> per&ent sta#e? T)e a&&epte bi propose a remuneration fee of G6?24 per barrel?3; After t)e "raqi overnment e'pelle T(AO from t)e Blo&# < &onsortium in 0ovember 2>12: %! =as as#e to ta#e over t)e s)are)olin: =)i&) in&rease its )olin to > per&ent?3<
36 !ompany (rofile ,eptember 2>11: +u&ait )nergy Com1any: retrieve 15 *e&ember 2>11? 3 $uture .as %'ports $rom "raq $iels (ossible: Arab /imes 0nline: 2> O&tober 2>11? 3; A !onsortium le by u=ait %nery a=are e'ploration an evelopment &ontra&t for blo&# <: Basra: "raq: +u&ait )nergy Com1any: retrieve 5 *e&ember 2>12? 3< "raq %'pels Tur#eyMs T(AO: as#s u=ait %nery to Repla&e: Ira' Business *e&s: 0ovember 2>12?
13>
Lu=oil Type
(ubli&imite!ompany
Trae as
,%O*N /!ZOCN $B+
$oune
1<<1
Ceaquarters
/os&o=:Russia
ey people
Dait.rayfer Ale#perov !%O7: Dalery 4> !)airman7
Revenue
+,G133?billion2>117
0et"n&ome
+,G1>?4billion2>117
V&)aneonpreviousyear
[15V
4> 4>
4>
Totalassets
+, G<1?2billion en2>117
4>
Total equity
+, G6?5 billion en 2>117
4>
%mployees
12>:3>>en2>117
ebsite
4>
===?lu#oil?&om
0lobal snapshot
u#oil is a major /os&o=-base international oil an as &ompany: a&&ountin for 2?2 per&ent of lobal output of &rue oil?41 "n 2>11 it ran#e 6> ist of t)e most valuable &ompanies in t)e =orl?42 an in 2>12 =as t)e 1;t) larest oil &ompany in t)e =orl by prou&tion? 43 T)e &ompany =as forme follo=in t)e issolution of t)e ,oviet +nion =)en t)ree state-run =estern ,iberian &ompanies anepasnefteaE: +rainefteaE an oalymnefteaE7 mere an t)e initials of t)e oriinal t)ree &ompanies =ere maintaine to form t)e ne= &ompany name? 44 T)e founer: an subsequent !%O an )oler of 2> per&ent of s)ares: is former ,oviet *eputy Oil /inister Dait Ale#perov 43 =)o: a&&orin to t)e *e& .ork /imes : )as #ept an unusually lo= profile in Russian politi&s?45 "n u#oil &laime prove of more t)an "t1oilreions equivalent2>11: boe7: t)e majority of =)i&)reserves is lo&ate in Russia? )abillion operations in Russia an 25 ot)er &ountries: an o=ne seven refineries an 6:5> as stations? A sinifi&ant ;?6 per&ent of mar#et4> Annual Report 2>11: Lukoil? 2>11? 41 .eneral "nformation: Lukoil, retrieve 1< *e&ember 2>12? 42 .lobal 5>> u#oil: C** (oney: retrieve < *e&ember 2>11? 43 T)e orls Biest Oil !ompanies: 4orbes: 16 uly 2>12? 44 OAO u#oil Cistory: 4unding Universe: retrieve 1< *e&ember 2>12? 45 u#oil: *e& .ork /imes Business: retrieve 1< *e&ember 2>12?
131
able )yro&arbon prou&tion are in Russia 41: but t)e &ompany also e'plores for oil an as in AEerbaijan: !olombia: %ypt: "ran: aEa#)stan: an ot)er areas in t)e /ile %ast an !entral Asia? 46 Averae aily prou&tion as of 2>12 =as 2?2 million boe per ay?43 "n uly 2>1> +, oil major !ono&o()illips sol its entire 2> per&ent sta#e in u#oil: value at aroun G< billion? u#oil aree to buy ba&# ?6 per&ent of its sto&# from !ono&o()illips for G3?44 billion?4
Lu=oil operations in Iraq #istory
u#oil =as rante t)e ri)ts to evelop oilfiels in 1<< by ,aam Cussein? T)e &ompany )el a 6;?5 per&ent s)are in t)e &onsortium: a proje&t =)i&) =as t)en &an&elle by Cusseins reime after u#oil refuse to violate +0 san&tions aainst "raq by rillin?4;? u#oil )a been tryin to revive t)e eal sin&e 2>>3 after /os&o= =rote off most of "raqs G12?< billion in ebts 4< an in April 2>>< u#oilMs !%O unsu&&essfully lobbie "raqi (rime /inister 0ouri al-/ali#i to reinstate t)e &ontra&t from t)e Cussein era?5>
Activities and contracts West urna !
After unsu&&essfully biin for t)e first p)ase of t)e est Furna proje&t: u#oil an partner ,tatoil =on ri)ts in 2>>< to evelop t)e se&on p)ase of "raqMs super iant est Furna &rue eposit: t)e larest offere to forein investors in t)e se&on roun of biin in "raq?5> T)e &onsortium offere to evelop t)e fiel in e'&)ane for G1?15 for ea&) barrel of oil it e'tra&te: outbiin &ompanies in&luin B( an Total? +ner t)e terms of t)e &ontra&t: ,tatoil =oul )ol an 1;?5 per&ent sta#e in t)e &onsortium: =it) u#oil )olin 56?25 per&ent an t)e "raqi states 0ort) Oil !ompany 0O!7 )olin t)e remainin 25 per&ent? 51 u#oil announ&e in 2>1> t)at t)ey planne to invest +, G4?5 billion at est Furna 2 over t)e follo=in 4-5 years an G3>> million over 2>1>?52? "n 0ovember 2>12 u#oil !%O Dait Ale#perov sueste t)at u#oil may loo# to I=ae eeper into "raqI by e'panin t)rou) parti&ipation in t)e est Furna-1 fiel? +(" reporte t)at offi&ials in Ba)a &onsiere brinin u#oil into t)e proje&t to potentially repla&e %''on/obil: =)o anere t)e &entral overnment by sinin eals 46 u#oil !ompany (rofile: .ahoo 4inance: retrieve < *e&ember 2>11? 4 !ono&o()illips to ,ell u#oil ,ta#e After (ostin (rofit .ain: Bloomberg: 2; uly 2>1>? 4; "raq u#oil !)ief ,ays (re=ar *eal ,till Dali: Cor1"atch, 11 /ar&) 2>>4 4< Russias u#oil Cas on "raqs !ro=n e=el Oil $iel: Business Insider: 2< *e&ember 2>> u#oil: ,tatoil in est Furna : Bloomberg: 12 *e&ember 2>>< 51 Oil $iel (roje&t in "raq on by u#oil an ,tatoil: *e& .ork /imes: 2< *e&ember 2>>1>
132
ire&tly =it) t)e semi-autonomous uristan Reional .overnment R.7?53 !euters reporte in 0ovember 2>12 t)at u#oil put its relations)ip =it) t)e &entral
overnment at ris# =)en its .eneva-base train arm itas&o bou)t oil from uristan: in efian&e of Ba)a? An offi&ial from "raqi state oil mar#eter ,O/O ismisse t)e &laims?54
*arathon Oil Corporation Type
(ubli&imite!ompany
Traeas
09,%/RO
$oune
1;;
Ceaquarters
Couston:Te'as
ey people
!laren&e !aEalot r (resient an !%O7
Revenue 0et"n&ome V&)aneonpreviousyear Totalassets Total equity
+,G14?billion2>117 +,G3billion2>11 [14?V
55
755
55
+, G31?4 billion en 2>117 +, G1?2 billion en 2>117
%mployees
3:322en2>11 755
ebsite
===?marat)on?&om
55 55
0lobal snapshot /arat)on Oil !ompany is a Couston-base international enery &ompany enae in e'ploration an prou&tion: oil sans minin an interate as? "ts =orl=ie prou&tion operations are fo&use in 0ort) Ameri&a: Afri&a an %urope?56 T)e &ompanys oriins lie in t)e pur&)ase of t)e O)io Oil !ompany by o)n *? Ro&#efellers ,tanar Oil Trust in 1;;<: but t)e &ompany resume inepenent prou&tion follo=in its issolution in 1<11? T)e O)io &)ane its name to t)e /arat)on Oil !ompany in 1<62 in )onour of its bran name motor fuel? Cavin been bou)t out by +nite ,tates ,teel in 1<;2: t)e steel business =as finally sol off in 2>>1? 5 "n /ay of 2>11: /arat)ons Boar approve t)e spin-off of its o=nstream business: /arat)on 53 u#oil may =ae eeper into "ra:q UPI, 3> 0ovember 2>12? 54 Russias +O" joins rus) to e'port uris) oil:: !euters, 2; 0ovember 2>12? 55 2>11 Annual Revie=: (arathon 0il Cor1oration, 2>11? 56 About +s: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11? 5 About +s Cistory: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11?
133
(etroleum !orporation?5; At t)e en of 2>11 /arat)on )a proven reserves of 1?; billion barrels of oil equivalent boe7?5< As of 2>12 /arat)on =as evelopin stratei& ro=t) assets in +, un&onventional liqui-ri&) plays an eep=ater Anola? (rou&tion in t)ese assets =as e'pe&te to ro= at a 25 per&ent annual ro=t) rate t)rou) until 2>15: =it) liquis a&&ountin for aroun > per&ent of t)e mi'?6>
*arathon operations in Iraq #istory /arat)on pre-qualifie to parti&ipate in t)e &entral overnments se&on li&ensin roun in 2>><: but eventually e&ie not to bi? 61 Cen&e &ontra&ts sine =it) t)e uristan Reional .overnment R.7 in 2>1> mar#e t)e beinnin of /arat)ons operations in "raq?
Activities and contracts "n 2>1> /arat)on a&quire a position in four e'ploration blo&#s in uristan in O&tober 2>1>: uner t)e frame=or# of prou&tion s)arin &ontra&ts (,!s7 sine ire&tly =it) t)e R.? T)ese =ere t)e Carir appro'imately ;:>>> net a&res7 an ,afen appro'imately 4:>>> net a&res7 blo&#s: lo&ate nort)-east of %rbil: an t)e Atrus) an 62
,arsan blo&#s: lo&ate nort)-=est of %rbil? Harir and Safen
/arat)on be&ame t)e operator at t)e Carir an ,afen blo&#s: =)ile t)e R. )el a 2> per&ent interest?63 Co=ever in uly 2>12 t)e &ompany aree to farm o=n t)ese t=o blo&#s: reu&in t)eir sta#e to 45 per&ent? 64 T)is =as to ma#e =ay for $ren&) oil major Totals entry into t)e reion?65 As of 2>12 t)e &ompany remaine t)e operator of t)e Carir blo&# an t)e e'ploration operator of t)e ,afen blo&#? T)e first e'ploration =ell on t)e Carir blo&# bean rillin in uly 2>12 an t)e first e'ploration =ell on t)e ,afen blo&# is planne for t)e first )alf of 2>13?62
5; /arat)ons Boar Approves ,pin-Off of /arat)on (etroleum !orporation: 0il?oice: 25 /ay 2>11? 5< /arat)on Oil ,ets 2>13 G5?2 Billion !apital: "nvestment an %'ploration Buet: 0ffshore Source: retrieve 1< *e&ember 2>12? 6> 2>1> Annual Revie=: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11? 61 "raqs Oil Bi Roun 2 +?s? $irms (arti&ipation: "ikileaks 21 *e&ember 2>>12? 63 /arat)on A&quires (ositions in 4 %'ploration Blo&#s in uristan: Ira' Business *e&s, 2> O&tober 2>11? 64 uristan Reion of "raq: (arathon 0il: retrieve 6 *e&ember 2>12? 65 /arat)on Oil sells sta#e in oil fiels in "raqs uristan: !euters9, =< July :;<:-
134
Atrush
/arat)on too# a 2> per&ent =or#in interest in t)e Atrus) blo&#? T)e remainin ;> per&ent =as ta#en by joint-venture &ompany .eneral %'ploration (artners .%(7? 66? Co=ever in *e&ember 2>12 .%( sol 53?2 per&ent of its interest in t)e blo&# to Abu *)abi 0ational %nery !ompany TAFA7? 6 "n April 2>11 /arat)on announ&e t)e is&overy of oil at t)e Atrus) site?6; Sarsan4 6<
At ,arsan t)e &ompany )as a 25 per&ent =or#in interest?
Occidental Petroleum Type
(ubli&imite!ompany
Traeas
09,%OZ9
$oune
1<2>
Ceaquarters
osAneles:+,A
ey people
Ray R? "rani !)airman7: ,tep)en !)aEen (resient an !%O7
Revenue 0etin&ome V&)aneonpreviousyear
+,G23?117 +,G6?6billion2>117 [45?3V
> >
>
Totalassets
G6>billionen2>117
Totalequity
G3?6billionen2>117
>
%mployees
over4>:>>>2>11 7>
ebsite
===?o'y?&om
>
0lobal snapshot O&&iental (etroleum: often referre to as O'y ue to its abbreviation on t)e 09,% sto&# e'&)ane:1 )as oil an as operations &onsoliate in t)ree &ore areas t)e +,: t)e /ile %ast an atin Ameri&a? "n 2>11 t)e &ompanys +, operations a&&ounte for 5< per&ent of t)eir =orl=ie prou&tion: t)e /ile %ast an 0ort) Afri&a 3 per&ent 66 Atrus) ell *elivers for /arat)on !onsortium: !ig#one: 14 April 2>11? 6 TAFA Buys into Atrus) Blo&#: Ira' Business *e&s: 3 *e&ember 2>12? 6; /arat)on ,tri#es Oil in "raq: 6acks )'uity !esearch 2> O&tober 2>11? 6< uristan Reion of "raq: (arathon 0il: retrieve 6 *e&ember 2>12? > Annual Report 2>1> 05y, retrieve >6 O&tober 2>11? 1 O&&iental (etroleum !orp (rofile: !euters: retrieve >6 O&tober 2>11?
135
an atin Ameri&a 4 per&ent?> T)e &ompany =as foune in !alifornia in 1<2>? !)airman Ray "rani =as ele&te on t)e eat) of Arman Cammer in 1<<>: =)o )a )eae t)e &ompany sin&e 1<5? 2 At t)e en of 2>11 O'y )el 2?3 billion barrels of oil equivalent boe7 in reserves an averae aily prou&tion =as 42;:>>> barrels per ay bp7? > A&&orin to a feature in 4orbes maaEine: t)e se&ret of t)e &ompanys su&&ess is no =il&attin an &ompany presient ,teve !)aEen: a former investment ban#er: &ommente in 2>1> t)at I=ere in t)e oil re&overy business: not t)e oil is&overy businessI? 3
Occidental operations in Iraq #istory T)e servi&e &ontra&ts sine in 2>>< mar#e t)e start of O&&ientals =or# in "raq? "n a lea#e +, iplomati& &able from early 2>1>: t)e "raq &ountry manaer for !)evron &ommente t)at: e'&luin state-&ontrolle &ompanies: IO&&iental (etroleum =as t)e only estern "O! t)at is not a former "(! "raq (etroleum !ompany7 partner an t)at bi aressively enou) to be a=are a &ontra&t from "raqs 2>>< oil bi rouns?I4
Activities and contracts ubair
O&&iental oriinally bi for evelopment of t)e @ubair fiel in "raqs first post-=ar li&ensin roun: as part of a &onsortium =it) fello= &ompanies %ni: ,inope& an oas: proposin a remuneration fee of G4?;> per barrel? Co=ever on t)is o&&asion no bis for t)e fiel =ere a&&epte as t)e per-barrels fees bi =ere &onsiere too )i) by t)e "raqi overnment?5 Co=ever follo=in bilateral neotiations: in anuary 2>1> O'y announ&e t)at t)e amene &onsortium )a sine a &ontra&t =it) t)e state-o=ne ,out) Oil !ompany ,O!7 an /aysan Oil !ompany /O!7 to evelop t)e fiel? T)e relative sta#es in t)e &onsortium =ere as follo=s %ni 32?; per&ent7: O&&iental 23?44 per&ent7 an oas 1;?5 per&ent7?6 A +, iplomati& &able from anuary 2>1> &laime t)at t)e %niO&&ientaloas &onsortium =as t)e only &onsortium not to )ave a&&epte &)anes emane by t)e /inistry of Oil an sueste t)e &ompanies may )ave aine some &on&essions on t)e &)anes emane by t)e /inistry? 2 !orporate Cistory: 05y: retrieve 1< *e&ember 2>12? 3 O&&iental (etroleums (at) to %asy Oil: 4orbes: 3 0ovember 2>1>? 4 !)evron On "o& "nvestin "n "raq: "ikileaks: 2> $ebruary 2>1>? 5 @ubair !ontra&t Area - Biin Results: LA /imes: 2 uly 2>>1>? All Oil Bi Roun !ontra&ts To Be ,ine By anuary 31: "ikileaks: 1< anuary 2>1>?
136
Pa=istan Petroleum Type
,tate-o=ne
$oune
1<5>;
Ceaquarters
ara&)i(a#istan7
ey(eople ebsite
Asim)an!%O
7<
===?ppl?&om?p#
0lobal snapshot (a#istan (etroleum ((7s s)are)o lin is ivie bet=een t)e overnment 1 per&ent7: t)e (( %mployees %mpo=erment Trust per&ent7 an private investors 22 per&ent7? it)in (a#istan: t)e &ompany operates si' prou&in fiels an )ols a =or#in interest in 13 partner-operate prou&in fiels? T)e &ompany &ontributes aroun 24 per&ent of t)e &ountys total natural as supplies? (( )as also e'pane its operations internationally? As of 2>12 it )a an interest in a joint venture e'ploration li&ense in 9emen: as =ell as )avin a&quire an e'ploration blo&# in "raq?;
Pa=istan Petroleum operations in Iraq #istory T)e &ontra&ts sine follo=in "raqs fourt) li&en sin roun in 2>12 mar#e t)e start of (a#istan (etroleums =or# in "raq?
Activities and contracts &lock 5
"n 2>12 (( sine a as e'ploration &ontra&t =it) t)e "raqi overnment to e'plore for natural as in Blo&# ; in *iyala an asit provin&es in eastern "raq? !%O Asim )an &ommente t)at I=e are plannin to spen a minimum of G1>> million to start e'ploration a&tivities an =e mi)t nee aitional G4>> million as investments?I<
; Overvie=: Pakistan Petroleum Limited: retrieve 6 *e&ember 2>12? < "raq: (a#istan (etroleum ,in $inal .as *eal: *atural as Asia: 6 0ovember 2>12?
13
Petronas Type
state-o=ne
$oune
1<4
Ceaquarters
ualaumpur:/alaysia
ey (eople
,)amsul AE)ar Bin Abbas !%O7
Revenue 0etin&ome V&)aneonpreviousyear Total Assets
+,G<?4billion2>117 +,G21?117 [25?4V
;> ;>
;>
+, G15?4 billion en 2>117
%mployees
43:;6>;>
ebsite
===?petronas?&om?my
;>
0lobal snapshot (etronas: s)ort for (etroliam 0asional Ber)a: =as foune in 1<4 an is /alaysias state-o=ne national oil &ompany an t)e &ountrys most profitable &ompany? T)e ;1
&ompany is /alaysias only representative in t)e $ortune 5>>barrels an 2>12 =as;2t)e 25t) larest lobal oil &ompany by prou&tion: at 1?4 million perinay bp7? (etronas subsiiaries operate in more t)an 2> &ountries: primarily in Asia an Afri&a? "n 2>11 t)e &ompany )a reserves of more t)an 2 billion barrels of oil equivalent boe7 an =as a major prou&er of liqui petroleum as (.7 an liquefie natural as 0.7?;3 "n 2>>: t)e 4inancial /imes ientifie (etronas as one of t)e ne= seven sisters - one of t)e most influential enery &ompanies from &ountries outsie t)e Oranisation for %&onomi& !o-operation an *evelopment O%!*7? ;4 "n turn: t)e )conomist refers to (etronas as a su&&essful e'ample of a national oil &ompany &ommentin t)at: in &ontrast to BraEils (etrobras: /alaysia )as not mae sinifi&ant omesti& oil is&overies in re&ent years? *urin t)e 1<<>s t)e &ompany bean e'panin abroa: mostly in Afri&a an by 2>> )a investe in 66 upstream proje&ts in 22 &ountries? ;5
;> (etronas: 4orbes: retrieve 1< *e&ember 2>12? ;1 /alaysias (etronas profit falls 23 per&ent : /he Boston lobe: 1 july 2>1> ? ;2 T)e orls 25 Biest Oil !ompanies: 4orbes: uly 2>12 ? ;3 (etronas: Hoovers: retrieve 15 *e&ember 2>11? ;4 T)e 0e= ,even ,isters: 4inancial /imes: 12 /ar&) 2>>? ;5 *rillin an nation-builin: )conomist: ; O&tober 2>>
13;
Petronas operations in Iraq #istory T)e &ontra&ts sine by (etronas in 2>>< mar#e t)e beinnin of t)eir operations in "raq? (etronas =as t)e most prolifi& bier in "raqs se&on li&ensin roun t)at year: submittin five bis an =innin four?;6 (etronas operates in "raq via fully o=ne subsiiary (etronas "raq .arraf t formerly #no=n as (etraonas !ariali "raq t7: t)e )ea offi&e of =)i&) is in *ubai?; ;;
Activities and contracts 0arraf
A &onsortium le by (etronas submitte a bi for evelopment of t)e .arraf fiel on t)e first ay of biin in *e&ember 2>> per&ent7 an ape' 4> per&ent7? ;6 Halfaya
(etronas )el a 25 per&ent interest t)e =innin for25 t)eper&ent7? Calfaya fiel? Ot)er partners =ere !0(! t)einoperator =it) &onsortium 5> per&ent7 biin an Total T)e remuneration fee offere =as G1?4> per barrel? T)e &ontra&t =as sine on t)e 2 anuary 2>1>?;6 Ma.noon
(etronas also sine a 2>-year servi&e &ontra&t to evelop t)e /ajnoon fiel: alon =it) international oil &ompany ,)ell? ,)ell is t)e lea operator in t)e &onsortium =it) a 45 per&ent sta#e? (etronas )ols 3> per&ent an t)e "raqi state )ols 25 per&ent?;< &adra
Only one &onsortium: le by .aEprom: bi for t)e Bara &ontra&t area in t)e se&on li&ensin roun? T)e Oil /inistry announ&e in *e&ember 2>>< t)at it )a a&&epte a revise bi from t)e &onsortium: =)i&) &omprise of .aEprom 3> per&ent7: orean .as !ompany 22?5 per&ent7: (etronas 15 per&ent7 an T(AO ?5 per&ent7? T)e 25 per&ent "raqi state partner =as t)e Oil %'ploration !ompany O%!7? <> ;6 Oil ,tampee "raq:s 2n Bi Roun Result:s "ikileaks: 14 *e&ember 2>>12 ;; (etronas *ire&tory: Petronas, retrieve 6 *e&ember 2>12;< "raq ,ins /ajnoon Oilfiel Areement it) ,)ell: (etronas: Bloomberg, 1 anuary 2>1> <> "raqMs ,e&on (etroleum i&ensin Roun Bara !ontra&t Area J Biin Results: Ira'i (inistry of 0il, 2>>
13<
ommunity relations A&&orin to Ira' 0il !e1ort (etronas )as e'perien&es a serious of problems in its relations)ip =it) t)e lo&al &ommunity sin&e beinnin operations in t)e &ountry in 2>>1> tribal leaers near t)e .arraf fiel emane t)at (etronas &ompensate t)em for evelopments in t)e reion: &ausin t)e e'ploration unit to )alt its =or#? Amon t)e issues raise by t)e tribal leaers =as t)e amae one by pipelines to lo&al ari&ulture: a &laim refute by lo&al offi&ials? Abul Cussein Cai Cajr: te&)ni&al aviser to *)i Fars provin&ial &oun&il: sai t)at tribal leaers )a enae in e'tortion usin violent t)reats aainst bot) (etronas an "raqi state &ompanies? An Oil /inistry spo#esman sai t)at any attempt by t)e tribes to neotiate a &ompensation pa&#ae ire&tly =it) (etronas =as aainst t)e la=?<2 "n early 2>12 se&urity uars at t)e .arraf site stae a sit-in protest aainst t)e &ompany: emanin =ae parity =it) se&urity uars at t)e A)ab oil fiel an &ompensation for lano=ners neatively affe&te by operations? "n aition: lo&als )ave proteste about pollution levels at .arraf: a&&usin (etronas of not utilisin a proper in&inerator for isposin of test oil? ,tate offi&ials put t)e problem o=n to t)e )eavy nature of t)e oil at t)e site: =)i&) &reates more smo#e: but *)i Fars %nvironment *ire&tor Raji 0ueima /ins)i &ommente t)at t)ey s)oul abie by plees mae in t)eir environmental impa&t assessment %"A7 an t)reatene leal a&tion by t)e %nvironment /inistry?<3 "n a furt)er blo= to t)e &ompanys operations: in 0ovember 2>12 villaers from near t)e .arraf fiel storme t)e fiel offi&es of (etronas an amae mu&) equipment? T)e unrest follo=e a ispute over ,)iite reliious observan&es: in =)at is a reliiously &onservative reion of "raq: spar#e =)en (etronas employees alleely remove flas )un to &elebrate t)e start of t)e mont) of /u)arram? As a result of t)e events: one /alaysian an one "raqi =ere )ospitalise?<1
%hell Type
(ubli&imite!ompany
Traeas
,%R*,A09,%R*,A
$oune
1<>
Ceaquarters
T)e Caue 0et)erlans7: onon +7
ey (eople
(eter Doser !%O7: orma Ollila
<1 (rotestors storm .arraf oil fiel after reliious ispute: Ira' 0il !e1ort: 3> 0ovember 2>12? <2 Tribal emans: allee e'tortion stall oil evelopment: Ira' 0il !e1ort: 2 une 2>1>? <3 Beyon t)e Cealines /ay 14: 2>12: Ira' 0il !e1ort: 14 /ay 2>12?
14>
!)airman7 Revenue
+,G4;4?5billion2>117
0et"n&ome
+,G31?2billion2>117
V&)aneonpreviousyear
[52?3V
<4 <4
<4
Total Assets
+, G345?3 billion en 2>117
Total %quity
+, G11billionen 2>11 7<4
%mployees ebsite
<>:>>>en2>117 <4 ===?s)ell?&om
<4
0lobal snapshot Anlo-*ut&) &ompany ,)ell =as ran#e in first pla&e on t)e 2>12 .lobal $ortune 5>> list of t)e =orls most valuable &ompani es? <5 "t enaes =orl=ie in t)e upstream: o=nstream an &orporate sements: an also )as interests in &)emi&als an ot)er enery-relate businesses?<6 "n 2>12 ,)ell =as also ran#e as t)e t) larest oil &ompany =orl=ie by prou&tion: =it) averae aily prou&tion of 3?< billion barrels of oil equivalent boe7 per ay?< T)e &ompany name an t)e &orporate loo =ere e&ie upon ue to founer /ar&us ,amuels ba&#roun in importin an e'portin oriental s)ells? Ce an )is brot)er rename t)eir oil transport &ompany t)e ,)ell Transport an Train !ompany in 1;<? Royal *ut&) =as a &ompany forme to evelop oil fiels in t)e *ut&) %ast "nies an t)e t=o &ompanies joine for&es in orer to prote&t t)emselves aainst &ompetitor ,tanar Oil? T)e full merer of t)e t=o &ompanies &ame in 1<>?<; A&&orin to !00: as a&&ess to oil ets ti)ter ,)ell is loo#in to evelop its alternative enery assets an in 2>1> sine an areement =it) a BraEilian biofuel &ompany &alle !osan t)at ma#es et)anol from suar&ane? "n 2>11 ,)ell =as also evelopin te&)noloy to buil t)e first floatin: liquefie natural as 0.7 plant: =)i&) =oul ive t)e &ompany an ee over &ompetition =)en it &omes to a&&essin fuel in eep =ater? T)is =ill be parti&ularly &riti&al as ,)ell )as sine off on ne= rillin proje&ts in t)e .ulf of /e'i&o an off t)e &oast of BraEil? <5
%hell operations in Iraq #istory ,)ell first entere "raq before it =as a soverein &ountry: as part of t)e Tur#is) (etro<4 Annual Revie= 2>11: Shell, 2>11? <5 .lobal 5>>Royal *ut&) ,)ell: C** (oney: retrieve 1< *e&ember 2>12? <6 Royal *ut&) ,)ell (rofile: !euters: retrieve 12 *e&ember 2>11? < T)e orls 25 Biest Oil !ompanies: 4orbes: uly 2>12? <; T)e beinnins: Shell: retrieve 1< *e&ember 2>12?
141
leum !ompany pree&essor of t)e "raq (etroleum !ompany7? T)e &ompany enjoye monopoly ri)ts to t)e &ountrys oil fiels an i&tate t)e terms of prou&tion an evelopment until 1<2: =)en "raq fully nationalise its oil se&tor an e'pelle t)e forein oil &ompanies? After t)e +,-le invasion in 2>>3: ,)ell =as amon t)e many international oil firms =)o returne see#in to e'plore "raqs reserves: ta#in sta#es in t)e est Furna 1 an /ajnoon fiels?<< A 2>12 report by !euters sueste t)at ,)ell =as e'plorin t)e possibility of enterin t)e uristan reion: a suestion enie by overnment offi&ials? A ,)ell spo#esman sai t)at Iover time: =e =ant to =or# in all of "raq: but for t)e time bein =eve ot t)ree mea-proje&ts on t)e o in sout)ern "raq7:I? A&&orin to t)e report: ,)ell )a &ome &lose to se&urin &ontra&ts in t)e uristan reion t=i&e: but pulle ba&# so as not to antaonise t)e overnment in Ba)a: =)i&) &onsiers &ontra&ts sine by t)e R. as illeal?;>>
Activities and contracts West urna *
$ollo=in "raqs first post-=ar li&ensin rouns in 2>><: in anuary 2>1> ,)ell =as t)e junior partner in t)e &onsortium t)at finalise a eal to evelop t)e est Furna fiel ()ase 17: after furt)er neotiations =it) t)e "raqi overnment? T)e senior partner in t)e &onsortium =as %''on/obil?;>1 %''on/obil )ols a 6> per&ent sta#e in t)e proje&t: ,)ell )ols 15 per&ent an t)e remainin 25 per&ent belons to t)e "raqi state? Reports by %o& Jones ne=s=ire in 0ovember 2>11 sueste t)at ,)ell mi)t ta#e over %''ons sta#e in t)e fiel if t)eir &ontra&t =as terminate by t)e overnment as a &onsequen&e of t)e eals its sine =it) t)e uristan Reional .overnment R.7? ;>2 As of 0ovember 2>12 %''on =as proressin =it) t)e sale of its est Furna assets: but it =as not yet &onfirme =)o t)e buyer =oul be?;>3 Ma.noon
"n "raqs se&on post-=ar li&ensin roun in 2>><: ,)ell =as part of a &onsortium in&luin (etronas t)at =on t)e &ontra&t to evelop t)e /ajnoon oil fiel? ,)ell )ols a 45 per&ent s)are in t)e &ontra&t: (etronas 3> per&entan an "raqi state &ompany )ols t)e remainin 25 per&ent ?;>4 T)e fee =as set at G1?3< per barrel an t)e &onsortium plee to in&rease output from t)e fiel to 1?; million barrels per ay bp7: more ;>5
t)an t=i&e =)at "raq )a e'pe&te? << T)e se&ret )istory of t)e ,)ell as eal: Ira' 0il !e1ort: 21 anuary 2>1> ;>> "raq says ,)ell enies oil tal#s =it) uristan: !euters: 26 ,eptember 2>12? ;>1 %''on: ,)ell ,in $inal *eal $or "raqMs est Furna 1 Oil $iel: !oyal %utch Shell: 25 anuary 2>1>? ;>2 ,)ell to Repla&e %''on at est Furna 1H: Ira' Business *e&s: 21 0ovember 2>11? ;>3 "raq says e'pe&ts %''on to finis) est Furna sale by *e&ember: !euters: < 0ovember 2>12? ;>4 Royal *ut&) ,)ell pl& =el&omes "raq /ajnoon &ontra&t a=ar: Shell: 11 *e&ember 2>>5 "raq Oil $iel .oes to Royal *ut&) ,)ell an (etronas: *e& .ork /imes: 11 *e&ember 2>>
142
"n O&tober 2>1> ,)ell !%O (eter Doser announ&e t)at t)e &ompany )a alreay raise prou&tion at t)e /ajnoon fiel to >:>>> bp: up from 45:>>> bp previously: )o=ever a&#no=lein t)at t)e ris# of operatin in "raq )a in&rease in re&ent mont)s?;>6 T)e &ompany suffere a series of setba&#s in t)e evelopment of t)e fiel in a&)ievin a prou&tion taret of 15:>>> bp: t)e level require for t)e &ompany to start re&overin &osts uner its eal =it) t)e "raqi oil ministry? ;> A&&orin to ,)ells ire&tor of meia relations *ieo (ereE: 2:5>> out of 3:>>> ,)ell staff at t)e /ajnoon fiel in 2>12 =ere "raqis?;>; South 0as Utilisation Pro.ect
,ee also South as Utilisation 1ro7ect "n ,eptember 2>>;: ,)ell sine a Ceas of Areement COA7 =it) t)e Oil /inistry to &apture some of t)e as flare at Basra in t)e sout): for a proje&t =)i&) later &ame to be #no=n as t)e ,out) .as +tilisation (roje&t?
%onan5ol Type
(arastatal
$oune
1<6
Ceaquarters
uana:Anola
ey(eople
/anuelDi&ente(resient7
Revenue
+,G34billion2>11 7;><
0et"n&ome
+,G3?2billion2>11 7;1>
V&)aneonpreviousyear ebsite
[32V
;1>
===?sonanol?&o?ao
0lobal snapshot ,onanol +%% =as establis)e in 1<6 follo=in t)e nationalisation of Anol: t)e oil roup t)at Anolas ne= rulers in)erite from t)e (ortuuese follo=in inepenen&e? ,onanol +%% be&ame ,onanol %( in 1<<< T)e &ompany &laims t)at: espite )avin t)e overnment as its sole s)are)oler: ,onanol )as al=ays been ov;>6 ,)ell Alreay Reports ,u&&ess at /ajnoon: Ira' Business *e&s: 12 O&tober 2>1> ;> ,)ell %'pe&ts To /eet "raq Oil $iel Taret *espite ,etba&#s: "all Street Journal: 1< ,eptember 2>12? ;>; Beyon t)e Cealines O&t? <: 2>12: Ira' 0il !e1ort: < O&tober 2>12? ;>< ,onanol An e&onomi& o&topus: Sonangol: 1; uly 2>12? ;1> ,onanolMs G3?2bn profit s)o=s 00(!Ms moel as bro#en: Business %ay: 12 *e&ember 2>12? ;11 Our Cistory: Sonangol: retrieve 1< *e&ember 2>11?
143
erne as a private &ompany an is uner stri&t performan&e stanars to ensure effi&ien&y an prou&tivity?;12 ,onanol %( enaes in resear&): e'ploration: an prou&tion of oil an as? "ts a&tivities in&lue prospe&tin : evelopment an refinin of )yro&arbons an t)eir erivatives? T)e &ompany also operates a net=or# of as an servi&e stations an operates an airline: =)i&) provi es air transportation to t)e oil inustry t)rou) a fleet of airplanes an )eli&opters in Afri&a an internationally?;13 "t also )as an e'pansive portfolio of interests in everyt)in from infrastru&ture: ban#in an real estate to a football team?;14 "n 2>12 ,onanol =as prou&in aroun 1>>:>>> barrels per ay bp7 but =as loo#in to in&rease t)is fivefol to 5>>:>>> bp? ;14 A&&orin to a 2>11 report by t)e Oranisation for %&onomi& !o-operation an *evelopment O%!*7: t)e revenues earne from oil an as sales )ave mae ,onanol t)e se&on larest &ompany in Afri&a in terms of turnover an profits? T)e report also &laims t)at ,onanol )as been be)avin li#e a soverein =ealt) fun ,$7: usin oilbase funs for investments in ot)er &ountries: su&) as investments in est Afri&an iron ore mines?;15 Transparen&y =at&)o Revenue at&) )as &riti&ise t)e &omple'ity an se&re&y of ,onanol: =)i&) oes not ivule all finan&ial relations an sub-&ontra&tin pro&eures for assinin =or#?;16
%onan5ol operations in Iraq #istory T)e &ontra&ts sine in 2>>< mar#e t)e beinnin of ,onanols operations in "raq? ,onanol =on t=o &ontra&t areas urin "raqs se&on roun of li&ensin in 2>><: 0ajma) an Fayara? Bot) lie in 0ineve) provin&e: #no=n as one of "raqs most trouble areas? Ie #no= t)at t)e area =)ere =e are oin is ris#y but =e are also sure t)at =it) t)e &ooperation =it) t)e "raqi aut)orities =e =ill be able to fulfil our &ompromise an be able also to prou&e oil for 0ajma) an Fayara:I sai .aspar /artin s: (res ient an !%O of ,onanol?;1
;12 About ,onanol %(: Sonangol: retrieve 1< *e&ember 2>11? ;13 ,onanol %(: Bloomberg Business "eek : retrieve 1< *e&ember 2>11? ;14 ,onanol An e&onomi& o&topus: Sonangol: 1; uly 2>12? ;15 ,onanol %(: 0)C% Publishing: 3 /ay 2>11: p>? ;16 Anola Transparen&y ,naps)ot: !evenue "atch Institute: retrieve 1< *e&ember 2>12? ;1 Anolas ,onanol sin "raqi oilfiel eals: I/*: 2; anuary 2>1>
144
Activities and contracts ayara
At t)e Fayara fiel: ,onanol too# a 5 per&ent sta#e in t)e venture? ,onanol sai t)at it =oul invest ", G2 billion at t)e fiel? ;1; "n /ar&) 2>11 ,onanol starte =or# at t)e 0ajma) fiel an =as ue to start to i =ells in April 2>11? ;1< a.mah
,onanol =as t)e only &ompany to bi for t)e 0ajma) &ontra&t area in t)e se&on li&ensin roun an t)e Oil /inistry announ&e on 12 *e&ember 2>>< t)at t)e &ompany )a been a=are t)e &ontra&t area?;2> Security 3roblems
As of /ar&) 2>12 ,onanols proje&ts in "raq remaine paralyse uner for&e majeure follo=in an atta&# on fa&ilities in 2>11? T)is set ba&# t)e &ompanys international plans? +ner &urren t &onitions it )as been sueste t)at ,onanol =oul start pro u&in at a rate of 5>:>>> barrels per ay bp7 from aroun 2>13? ;21
%tatoil Type Traeas
(artiallystate-o=ne O,%,T09,%,TO
$oune
1<2
Ceaquarters
,tavaner:0or=ay
ey people
Cele un !%O7: ,vein Rennemo !)airman7
Revenue 0et"n&ome V&)aneonpreviousyear Total assets
+,G11117
;22
+,G6?3billion2>11 7;23 [116?4V
;23
0O 6;?6 billion appro'?;22+, G13;?4 billion7: 2>11?
;1; $A!TBOZ-Oil eals bet=een "raq an lobal majors: !euters: 26 $ebruary 2>1>? ;1< ,onanol to ,tart or# on 0ine=a Oilfiels: Ira' Business *e&s: 14 /ar&) 2>11? ;2> "raqMs ,e&on (etroleum i&ensin Roun0ajma) !ontra&t Area J Biin Results: (inistry of 0il Petroleum and Licensing %irectorate: 12 *e&ember 2>>12? ;22 Annual Report 2>11: Statoil, 2>11? ;23 $ortune 5>> ,tatoil: C** (oney: retrieve 1< *e&ember 2>12?
145
Total equity
0O 2;5?2 billion appro'? +,G51?4 billion7: 2>11?;22
%mployees ebsite
3>:3>>en2>117?
;23
===?statoil?&om
0lobal snapshot ,tatoil: formerly #no=n as ,tatoilCyro: be&ame t)e larest offs)ore operator in t)e ;24
=orl follo=in its merer =it) 0ors# in 2>>? ;25 T)e 0or=eian t)e larest s)are)oler in ,tatoil =it)Cyro 6 per&ent? Co=ever )ea overnment of ,tatoil foris !anaa ,tale Tunesvi# )as tol press t)at ,tatoil be)aves li#e a private &ompany an t)e state )as no role in its manaement? ;26 ,tatoil =as also name t)e most transparent of t)e =orls 1>5 publi&ly trae &ompan ies by pressure roup Transparen&y "nternational in 2>12?;2 "n %urope ,tatoil is t)e se&on-larest supplier of natural as ;26 an internationally: ,tatoil )as operations in 34 &ountries an is liste on t)e 0e= 9or# an Oslo sto&# e'&)anes?;2; At t)e en of 2>11 ,tatoil )a proven reserves of 5?43 billion barrels of oil equivalent boe7?;2< As of 2>12 t)e &ompany =as prou&in bet=een 1?; - 2?1 million boe aily: a&&orin to ifferin estimates: ;3>;31 but =as aimin to in&rease t)is fiure to 2?5 million boe per ay by 2>2> by rampin up its un&onventional e'ploration an 0ort) ,ea operations?;31
%tatoil operations in Iraq #istory 2>>< mar#e t)e beinnin of ,tatoils involvement in "raq?
Activities and contracts West urna !
After unsu&&essfully biin for t)e first p)ase of t)e est Furna fiel: ,tatoil an ;24 ,tatoil to buy t)e natural as an oil operations of 0ors# Cyro for G2; billion: *e& .ork /imes: 1; *e&ember 2>>6? ;25 T)e orls 25 Biest Oil !ompanies: 4orbes: uly 2>12? ;26 0or=ayMs state-o=ne enery iant ,tatoil =ants to be jue on its o=n a&tions: 4inancial Post: 15 O&tober 2>12? ;2 ,tatoil tops: .aEproms flops in transparen&y ran#in: Barents 0bserver: 1> uly 2>12? ;2; ,tatoil in Brief Statoil: retrieve > O&tober 2>11? ;2< Annual Report 2>11: Statoil, retrieve 12 *e&ember 2>12? ;3> T)e orls 25 Biest Oil !ompanies: 4orbes: uly 2>12? ;31 ,)ale to spur ,tatoil output rive: Petroleum )conomist: 2; 0ovember 2>12?
146
partner u#oil =on ri)ts in 2>>< to evelop t)e se&on p)ase of "raqMs super iant est Furna &rue eposit: t)e larest offere to forein investors in 2>><s se&on roun of biin;32? T)e &onsortium offere to evelop t)e fiel in e'&)ane for G1?15 for ea&) barrel of oil it e'tra&te: outbiin offers from &ompanies in&lu in B( an Total? +ner t)e terms of t)e &ontra&t: ,tatoil =as to )ol an 1;?5 per&ent s)are of t)e &onsortium: =it) u#oil )olin 56?25 per&ent an t)e state-o=ne 0ort) Oil !ompany 0O!7 )olin t)e remainin 25 per&ent?;33 (eter /ellbye: ,tatoils Cea of "nternational %'ploration an (rou&tion sai in 2>1> t)at t)e &ompany =oul invest G1?4 billion over t)e follo=in 4 to 5 years?;34 Co=ever: after re&eivin t)e approval of t)e "raqi Oil /inistry in /ar&) 2>12: ,tatoil bean sellin off its sta#e in t)e fiel: leavin Russian u#oil as t)e sole forein partner in t)e proje&t? !euters reporte t)at t)e &ompany =as loo#in to turn its attention to less ris#y assets else=)ere: su&) as 0or=ay an t)e +,?;35
9alisman +ner5y Type
(ubli&imite!ompany
Traeas
T,ZT/09,%T/
$oune Ceaquarters ey (eople Revenue
1<<2 !alary:!anaa o)n /anEoni !%O: (resient7 +,G;?3billion2>11 7;36
0et"n&ome
G6million2>117
TotalAssets
G24?2billion
;36
;36
%mployees
3:6<52>12 7;36
ebsite
===?talisman-enery?&om
0lobal snapshot Talisman %nery is an upstream oil an as &ompany t)at enaes in t)e e'ploration: evelopment: prou&tion: transportation: mar#etin &rue natural as: an natural as liquis? "t primarily operates inan 0ort) Ameri&a:oft)e +:oil: ,&aninavia: an sout)-east Asia? Talisman =as &reate in 1<<2 =)en B( spun off its !anaian unit? !%O o)n /anEoni formerly =or#e for B( as )ea of t)e &ompanys refinin an mar#et;32 u#oil: ,tatoil in est Furna: Bloomberg, 12 *e&ember 2>>>1>? ;35 "raq Os ,tatoil sale of oilfiel sta#e -sour&es: !euters: < anuary 2>1>? ;36 Talisman %nery: 4orbes: retrieve 1< *e&ember 2>12?
14
in unit?;3 T)e &ompany is liste on t)e Toronto an 0e= 9or# sto&# e'&)anes?;3; "n 2>12 Talisman %nery =as ran#e at number 624 in $orbes .lobal 2>>> list of t)e =orls biest publi& &ompanies? ;36 Over 2>11 averae aily prou&tion stoo at 426:>>> barrels of oil equivalent boe7 per ay an lobal proven reserves stoo at 1?4< billion boe?;3<
9alisman +ner5y operations in Iraq #istory !ontra&ts sine =it) t)e uristan Reional .overnment R.7 in 2>>; mar#e t)e beinnin of Talismans operations in "raq?
Activities and contracts &locks K66, K7' and K' (Kurdistan)
As of 0ovember 2>11 Talisman )el &ontra&ts in t)ree oil fiels in uristan: ;4>? "n 2>>; t)e &ompany a&quire a 4> per&ent non-operate interest in Blo&# 44 uramir Blo: in partners)ip =it) !alary-base estern @aros 4> per&ent7 an t)e R. 2> per&ent7 ;41? T)ey also a&quire a 6> per&ent operatin interest in Blo&# 3< an sine a (rou&tion ,)arin !ontra&t (,!7 for a 55 per&ent =or#in interest in Blo&# ;42
< in une 2>>>; Talisman announ&e t)at t)ey =oul spen !A* G3>> million to e'plore in t)e reion? A &ompany spo#esman sai t)at t)e &ompany )a performe a se&urity assessment an t)ou)t t)at t)e reion Ista&#s up =it) ot)er areas in t)e =orl =)ere it operates: su&) as ,out)east Asia?I ;43 "n /ar&) 2>12 t)e &ompany announ&e t)at it )a is&overe li)t oil at one of its uristan =ells?;44 "n *e&ember 2>12 Talismans )ea of e'ploration Ri&)ar Cerbert &ommente to t)e Petroleum )conomist t)at &apitalisin on as sales from its fiels may offer a =ay of monetisin its )yro&arbons in uristan iven t)e politi&al &onstraints on oil e'ports: =)i&) are &ontrolle by t)e &entral ,tate Oil /ar#etin Oranisation ,O/O7? T)is =oul allo= t)em to re&oup some of t)e money t)e firm )a investe in t)e uramir prospe&t?;45 ;3 B( sells G1?1>? ;3; About Our !ompany: /alisman )nergy: retrieve 1< *e&ember 2>11? ;3< Annual Report 2>11: /alisman )nergy, 2>11? ;4> Bi&#erin Over Oil an .as a= Curts $orein "nvestment: !uda&, 22 0ovember 2>11? ;41 "raq uristan 44 oil reserves ouble to 2?2 billion barrels auit: Platts, 2> uly 2>11? ;42 T)e Role of t)e (rivate ,e&tor in (ea&e an *evelopment - *eliverin for Results: Beyon %&onomi&s: /alisman )nergy !e1ort, 12 /ay 2>11? ;43 Talisman )eas into "raq =it) G3>>-million sta#e: Calgary Herald, 24 une 2>>;? ;44 Talisman fins li)t oil at "raq =ell: !euters: 26 /ar&) 2>12? ;45 uristan eyes major role in Tur#is) as mar#et: Petroleum )conomist: 13 *e&ember 2>12?
14;
9otal Type
(ubli&imite!ompany
Traeas
%urone't$(09,%TOT
$oune
1<24
Ceaquarters
!ourbevoie:$ran&e
ey people
!)ristop)e *e /arerie !%O7: T)ierry *esmarest !)airman7
Revenue
Y166?6 billion appro'? +, G22>?5 billion7: 2>11?;46
0et "n&ome
Y12?3 billion appro'? +, G16?3 billion7: 2>11?;46
V&)aneonpreviousyear Total assets %mployees ebsite
[16?1V
;46
Y164?1 billion appro'? +, G21?2 billion7: en 2>11?;46 <6:1>4en2>117
;4
===?total?&om
0lobal snapshot "n 2>12 Total =as t)e =orls 13t) larest oil &ompany by prou&tion: =it) an averae of 2? million barrels of oil equivalent boe7 prou&e per ay? ;4; "t )a operations in more t)an 13> &ountries?;4 T)e &ompany )as been t)rou) several name &)anes t)rou) its )istory? "t =as foune as t)e !ompanie $ran&aise es (troles in 1<24 an in 1<2 it mae its first is&overy at t)e Baba .urur oil fiel in nort)ern "raq? T)e &ompany rename itself Total !$( in 1<;5 an later in 1<<1 t)e name =as &)ane to Total? At t)is time t)e $ren&) overnment o=ne over 3> per&ent of t)e &ompanys sto&#: but reu&e t)is to less t)an 1 per&ent by 1<<6? )en Total too# over Belian (etrofina in 1<<< it be&ame #no=n as Total $ina an after merin %lf Aquitane in 2>>> it =as temporarily name Total$ina%lf?;4< At t)e en of 2>11 t)e &ompany )a proven reserves of 11?4 billion barrels of oil equivalent boe7?;4
;46 $orm 2>$ 2>11: /otal, 2>11? ;4 .roup (resentation: /otal: retrieve 1< *e&ember 2>12? ;4; T)e orls 25 Biest Oil !ompanies: 4orbes: retrieve 1< *e&ember 2>12? ;4< An illustrate )istory of Total: /otal: retrieve 1< *e&ember 2>12?
14<
9otal operations in Iraq #istory Total ,?A? bean its =or# in "raq as part of t)e "raq (etroleum !ompany "(!7 in t)e 1<2>s =)en it is&overe t)e ir#u# fiel: follo=e by furt)er evelopments at t)e BuEuran an Abu .)irab fiels in t)e 1<>s?;5>? +ner ,aam CusseinMs reime in t)e 1<<>s: Total sine areements to evelop t)e /ajnoon an 0a)r Bin Omar fiels in t)e &ase of t)e &ountry bein free from san&tions? Co=ever after CusseinMs fall in 2>>3: t)e ne= aministration announ&e t)at t)ey =oul not re&onise eals sine uner t)e i&tator? "n 2>>: it =as reporte t)at Total sine an areement toet)er =it) !)evron t)at =oul lea to t)e t=o &ompanies e'plorin an evelopin )yro&arbons from t)e /ajnoon fiel on&e t)e &ountry )a put an oil la= into pla&e?;51 Co=ever as of *e&ember 2>12 t)e &ompanys position in t)e &ountry remaine un&ertain follo=in t)e eals it sine in t)e summer of t)at year ire&tly =it) t)e semiautonomous uristan Reional .overnment R.7?;52
Activities and contracts Halfaya
"n 2>>< Total =as part of t)e &onsortium t)at =on t)e &ontra&t to evelop t)e Calfaya oil fiel: =it) Total )olin an 1;?5 per&ent sta#e in t)e proje&t: !0(! 3?5 per&ent: (etronas 1;?5 per&ent an t)e "raqi state-run ,out) Oil !ompany ,O!7 )olin t)e remainin 25 per&ent sta#e?;53? T)e &ontra&t stipulate a remuneration fee of G1?4> per barrel an t)e payment of a non-re&overable sinature bonus of +, G15> million ;54 T)e &onsortium plee to boost output at Calfaya to 535:>>> barrels per ay bp7 from a 2>1> level of 3:1>> bp ;55 Harir and Safen (Kurdistan)
"n uly 2>12 Total pur&)ase uris) assets from +,-base /arat)on Oil !orporation: a&quirin a 35 per&ent sta#e in t=o blo&#s: at Carir an ,afen an be&omin operator of one li&ense?;52 Total !%O !)ristop)e e /arerie )a sinalle earlier t)at year t)at t)e &ompany =oul &onsier investments in uristan iven t)e more attra&tive fis&al &onitions ;5> Total an partners (etro&)ina an (etronas to evelop t)e Calfaya oil fiel : /otal: 2; anuary 2>1>? ;51 Total sin "raq oil &ontra&t for /ajnoon $iel: /he Bush Agenda: ; Auust 2>>? ;52 Total fa&es ultimatum on uristan eal: 4inancial /imes: 13 Auust 2>12? ;53 "raq !0(!s Calfaya proje&t in "raq to start operation in C2: /he 4ree Library: < /ar&) 2>1>? ;54 "raq in#s !0(!: Total: (etronas Calfaya eal: Ira' 0il 4ield: 3> anuary 2>1>? ;55 !0(! says "ran: "raq oil proje&ts pro&ee =ell !euters: 21 April 2>1>?
15>
t)an in t)e sout) ?;56 A (aris-base inustry analyst quote by !euters sai t)at t)e &)allene for Total in t)ese blo&#s =oul be t)e transportation of t)e prou&t: as Ba)a &oul blo&# t)e use of its pipelines to t)e sout)?;56 T)e +s 4inancial /imes reporte t)at Cussein ,)a)ristani: "raqMs *eputy (rime /inister for enery: presente Total =it) an ultimatum to roll ba&# t)e eal =it) t)e R. or ive up its interests &ontrolle by t)e feeral overnment t)e Calfaya fiel7? Co=ever t)ese reports =ere not &onfirme ;52 an later t)at year *e /arerie es&ribe as Iun&learI =)et)er t)e &entral overnment =oul li#e Total to quit operations at Calfaya?;5
9r=iye Petrolleri Anonim Orta=lBB 9PAO! Type
,tate-o=ne
$oune
1<54
Ceaquarters
An#araTur#ey7
ey(eople
/e)met+ysal!%O7
Revenue
+,G3?3billion2>11 7;5;
0et"n&ome
+,G1?4billion2>11 7;5;
V&)aneonpreviousyear TotalAssets
[6?1V ;5; +,G?2billionen2>11 7 ;5;
,)are)oler %quity
+, G5?; billion en 2>11 7 ;5;
%mployees
4:;51en2>11 7;5;
ebsite
===?tpao?ov?tr
0lobal snapshot T(AO =as establis)e in 1<54: =)en it too# over from Tur#eys ,tate /inerals %'ploration "nstitute /TA7?;5< T(AO )as appro'imately 5:>>> employees t)rou)out Tur#ey an at its bran&) offi&es abroa? to offi&ial &ompany literature : inina t)e bi!aspian to improve reional se&urity:A&&orin T(AO &onu&ts its international a&tivities reion: 0ort)enery Afri&a an t)e /ile %ast? As of 2>11: e'ploration an prou&tion a&tivities =ere bein a&t ively &arrie out in AEerbaijan: aEa#)stan: ibya an "raq: an t)e &ompany =as sear&)in for business opportunities in &ountries in&luin ,yria: Tur#menistan: "ran: ;56 Totals uristan oil eal aners "raq: !euters: 31 uly 2>12? ;5 Total says un&lear if "raq =ants it to e'it Calfaya: Ira' Business *e&s: 1 0ovember 2>12? ;5; 2>11 Annual Report: /PA0: retrieve 2> *e&ember 2>12? ;5< T+R%9 - T(AO 8 "ts $iels: All Business: 24 April 2>>>?
151
Russia: !olombia: ,uan an DeneEuela? ;6> As of late 2>12 t)e &ompany remaine stateo=ne but !euters reporte in early 2>11 t)at t)e Tur#is) overnment =as preparin for t)e privatisation of T(AO?;61 Tur#eys oil an as transportation &ompany BOTA, =as establis)e as a subsiiary of T(AO in 1<4?;62 "n 0ovember 2>12 BOTA, sine an areement =it) AEerbaijani state oil &ompany ,O!AR as s)are)olers of t)e Trans-Anatolian pipeline proje&t TA0A(7: one of t)e lin#s in t)e &)ain of t)e ,out)ern !orrior pipeline proje&t aime at brinin as supplies into %astern %urope an bypassin Russian territory ? BOTA, =ill )ol a 2> per&ent s)are in t)e proje&t?;63
9PAO operations in Iraq #istory T(AO bean =or# in "raq in 1<<4 ;64 an )as sine several &ontra&ts =it) t)e "raqi overnment sin&e t)en to operate in sout)ern "raq? Co=ever follo=in a sourin of relations bet=een Ba)a an An#ara: T(AO =as e'pelle in late 2>12 from Blo&# <: a&quire urin t)e &ountrys t)ir li&ensin roun earlier t)at year ?;65 Ira' 0il !e1ort reports an in&reasinly &lose relations)ip bet=een t)e Tur#s an t)e uristan Reional .overnment R.7 as bein a &ause of t)e &ollapse in relations: )o=ever as of 2>12 T(AO itself )a no investments in t)e uristan reion?;66
Activities and contracts &adra
$ollo=in "raqs se&on li&ensin roun in 2>><: T(AO =as part of t)e &onsortium =)i&) =on a &ontra&t to evelop t)e Bara oilfiel? T)e &onsortium: in =)i&) T(AO )ols a 1> per&ent sta#e: .aEprom 4> per&ent: O.A, 3> per&ent an (etronas 2> per&ent7;6 oriinally requeste G6 per barrel of oil e'tra&te from t)e fiel but later a&&epte t)e Oil /inistrys offer of G 5?5> ;6;? "raqi Oil /inister Cussein ,)a)ristani sai in 2>>< t)at )e =as please t)at T(AO =on t)e tener for Bara oilfiel: ain t)at "raqi aut)orities )a been e'ertin efforts to ;6> 2>1> Annual Report: /PA0: retrieve 15 *e&ember 2>11? ;61 Tur#eys plans to privatise T(AO at #ey stae: !euters: anuary 2>11? ;62 About +s: B0/AS: retrieve 2> *e&ember 2>12? ;63 ,O!AR: Botas an T(AO establis) &ompany for TA0A( pipeline: A#erne&s: 0ovember 2>12? ;64 %astern (romise: 08 *e5t eneration: retrieve *e&ember 2>12? ;65 "raq %'pels Tur#eyMs T(AO: as#s u=ait %nery to Repla&e: Ira' Business *e&s: 0ovember 2>12? ;66 Ba)a bla&#lists T(AO =it)out e'planation: Ira' 0il !e1ort: ; 0ovember 2>12? ;6 "raq sins eal =it) .aEprom roup for Bara): !euters: 2; anuary 2>1>? ;6; Russian enery iant .aEprom =ins &ontra&t for "raqs Bara oil fiel : /ai&an *e&s: 13 *e&ember 2>>
152
boost politi&al: e&onomi& an so&ial relations =it) Tur#ey? T)e )ea of T(AOs "nternational (roje&ts *epartment /e)met Ali aya also ae in 2>>< t)at t)e &ompany reare t)e tener as a first step for "raq an t)at T(AO =ere eaer to parti&i pate in ot)er proje&ts in "raq?;6< Maysan
"n 2>1> T(AO joine for&es =it) !)inese !0OO! in a se&on eal to evelop t)e /aysan oilfiel &omple'? ;> T(AO steppe in to ta#e t)e pla&e of ,ino&)em: =)i&) =it)re= from t)e &onsortium urin neotiations? !0OO! )ols a 63?5 per&ent majority sta#e in t)e roup:;1=)ile T(AO )ols 11?25 per&ent an t)e "raqi overnment t)e remainin 25 per&ent? (resient of t)e %'e&utive Boar an *ire&tor .eneral of T(AO /e)met +ysal sai t)at Iby =innin t=o teners: T(AO plans to prou&e 1>>:>>> barre ls of oil per ay in t)e ne't t)ree years in "raqI?;2 Mansuriyah and Siba
)en "raq laun&)e its t)ir li&ensin roun in 2>1>: t)ree as fiels =ere tenere for evelopment A##as: /ansuriya): an ,iba?;3 A &onsortium of T(AO 5> per&ent7: u=ait %nery !ompany 3> per&ent7 an oas 2> per&ent7 finalise eals in une 2>11 to jointly evelop t)e /ansuriya) fiel in eastern "raq:;4 =)i&) pays G per barrel of oil equivalent boe7 e'tra&te;5 u=ait %nery 6> per&ent operatin sta#e7 an T(AO 4> per&ent7 =on t)e bi to jointly evelop t)e ,iba fiel in t)e sout) an sine a eal t)at =ill pay t)em G?5> per boe e'tra&te?;6 T(AO an its partners e'pe&te to invest appro'imately +, G2?5 billion in t)e /ansuriya) fiel an G1 billion in ,iba? T)e reional an eorap)i&al pro'imity of T(AO an u=ait %nery to "raq playe a role in t)eir =innin of t)e &ontra&ts: a&&orin to t)e !yprus-base enery ne=sletter (iddle )ast )conomic Survey ())S ?;3 &lock '
$ollo=in "raqs fourt) li&ensin roun in /ay 2>12: T(AO =as part of t)e &onsortium ;6< "raqi Oil /inister .la T(AO ins Oil Tener in "raq: /urkish "eekly: 13 *e&ember 2>> "raq sins eal =it) !)inese: Tur#is) oil firms : /he Peninsula: 1; /ay 2>1>? ;1 "raq in eal =it) !0OO!: T(AO for /aysan oilfiels: !euters: 1 /ay 2>1> ? ;2 Tur#eys T(AO a=are se&on "raq oil eal: "orld Bulletin, 1; /ay 2>1>? ;3 .as $iels Bi Roun "n "raq ,u&&ess it) Ris#: (iddle )ast )conomic Survey, 2 *e&ember 2>1>? ;4 u=ait %nery Bas !ontra&ts $or ,iba: /ansuriya .as $iels "n "raq: Arab /imes: 2> O&tober 2>11? ;5 /ansuriya) !ontra&t Area - Biin Results: Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>11? ;6 ,iba !ontra&t Area - Biin Results: Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>11?
153
t)at =as a=are t)e &ontra&t for t)e <>>-square-#ilometre Blo&# per&ent7: T(AO 3> per&ent7 an u=ait %nery 4> per&ent an operator7? T)e a&&epte remuneration fee =as G6?24 per barrel? Co=ever in 0ovember 2>12 t)e "raq &abinet e'pelle T(AO from t)e &onsortium? Abul /a)i al-Ameei: ire&tor of t)e Oil /inistryMs (etroleum !ontra&ts an i&ensin *ire&torate (!*7 e'plaine t)at Ifor reasons to o =it) non-te&)ni&al issues an outsie t)e responsibility of my offi&e an me personally t)e Tur#is) &ompany T(AO =as e'&lue from t)e &onsortium t)is e&ision is final: t)ere is no approval to sin t)e &ontra&t for Blo&# < t)e e&ision to e'pel T(AO7 is from t)e &abinet?L T)e &)ane =oul mean t)at u=ait %nerys )olin =oul rise to > per&ent? ; A&&orin to Ira' 0il !e1ort : Iit appears t)at reional politi&s are to blameI for t)e e&ision?;;
Companies $ith contracts $ith the 8R0 A ro=in list of international enery &ompanies )ave sine &ontra&ts =it) t)e R.: espite t)e fa&t t)at t)e "raqi overnment in Ba)a )as e&lare any oil eals sine =it) t)e R. illeal? ;< A R. offi&ial sai in *e&ember 2>12 t)at t)ere =ere 45 to 5> &ontra&tors no= =or#in in t)e reion?;;> T)e follo=in is a non-e')austive7 list of t)e international firms =it) operations in t)e liste by &ountry?2>12 T)e list =as &ompile from t)e relevant &orporate =ebsites:reion: a&&esse in *e&ember
Companies $ith operations in 8urdistan Austria O/D ===?omv?&om
anada .rounstar Resour&es ===?rounstarresour&es?&om 0i#o Resour&es ===?ni#oresour&es?&om ,)amaran (etroleum ===?s)amaranpetroleum?&om Talisman %nery ===?talisman-enery?&om Dast %'ploration ===?vaste'ploration?&om ; "raq %'pels Tur#eyMs T(AO: as#s u=ait %nery to Repla&e: Ira' Business *e&s: 0ovember 2>12? ;; Ba)a bla&#lists T(AO =it)out e'planation: Ira' 0il !e1ort: ; 0ovember 2>12? ;< "raq sees %''ons interest in sout) larer t)an ur eal: !euters, 1< 0ovember 2>11? ;;> As uristan oil booms: eal-ma#in a&&elerates: Ira' 0il !e1ort: 3 *e&ember 2>11?
154
estern@aros ===?=esternEaros?&om
hina Aa' (etroleum ===?aa'petroleum?&om
#ungary /O ===?mol?)u
India Relian&e "nustries ===?ril?&om
'orway *0O "nternational ===?no?no
!apua 'ew Guinea Oil ,ear&) ===?oilsear&)?&om
Russia .aEprom ===?aEprom?&om
,outh -orea orea 0ational Oil !ompany ===?#no&?&o?#r
)urkey *oan %nerji ===?oan)olin?&om?tr .enel %nery ===?enelenery?&om (etoil ===?petoil?&om?tr
United Arab $mirates Abu *)abi 0ational %nery !ompany TAFA7 ===?taqa?ae;;1
United -ingdom Afren ===?afren?&om ;;1 TAFA Buys into Atrus) Blo&#: Ira' Business *e&s: 3 *e&ember 2>12?
155
.ulf eystone (etroleum ===?ulf#eystone?&om (eren&o ===?peren&o?&om ,terlin %nery ===?sterlineneryu#?&om
United ,tates Aspe&t %nery ===?aspe&tenery?&om in pro&ess of ivestin assets as of *e&ember 2>127;;1 !)evron ===?&)evron?&om Cess ===?)ess?&om Cunt (etroleum ===?)untoil?&om /urp)y Oil !orporation ===?murp)yoil&orp?&om
156
Ministry and its operating companies
*inistry of Oil %tructure T)e Oil /inistry is t)e #ey institution in "raqs )yro&arbons se&tor? ;;2 T)e Oil /inister is t)e fun&tional )ea of t)e "raqi inustry: =it) several unerse&retaries reportin ire&tly to )im? +ner t)e umbrella of t)e /inistry are state-run &ompanies =)i&) are fun&tionally efine: ea&) le by a *ire&tor .eneral an ot)er senior staff? ;;3 T)e issolution of t)e "raq 0ational Oil !ompany in 1<; le to t)e &reation of 15 state o=ne oil &ompanies ire&tly uner t)e /inistry of Oil? By 2>13 t)is number )a ro=n to 23 an t)e operatin entities =ere as follo=s: ea&) fulfillin a ifferent role (etroleum Resear&) 8 *evelopment !enter (R*!7N Baiji Oil Trainin "nstitute BaiOT"7N Basra Oil Trainin "nstitute BasO"T7N ir#u# Oil Trainin "nstitute OT"7N Ba)a Oil Trainin "nstitute BOT"7N Ceavy %nineerin %quipments C%%,!O7N ,out) Refineries !ompany ,R!7N /ilan Refineries !ompany /R!7N 0ort) Refineries !ompany 0R!7N .as $illin !ompany .$!7N ,out) .as !ompany ,.!7N 0ort) .as !ompany 0.!7N /aysan Oil !ompany /O!7N ,out) Oil !ompany ,O!7N /ilan Oil !ompany /*O!7N 0ort) Oil !ompany 0O!7N "raq *rillin !ompany "*!7N Oil (rou&ts Reistribution !ompany O(*!7N ,tate Oranisation for /ar#etin of Oil ,O/O7N Oil (ipelines !ompany O(!7N "raqi Oil Tan#er !ompany "OT!7N Oil %'ploration !ompany O%!7N ,tate !ompany of Oil (roje&t ,!O(7?;;4 As of 2>> t)e /inistry )a a total of 66:5>> employees in total a&ross all of its separate entities?;;5 On 21 *e&ember 2>1> Abul arim al-uaibi be&ame Oil /inister after t)e in&umbent Cussein ,)a)ristani move posts to be&ome *eputy (rime /inister for %nery?;;6
Role T)e /inistry is responsible for t)e ay-to-ay manaement of t)e oil inustry: in&lu;;2 "raq %nery Outloo#: International )nergy Agency: < O&tober 2>12? ;;3 "raqs Oil ,e&tor "ssues an Opportunities: James A- Baker Institute for Public Policy: *e&ember 2>>6? ;;4 /inistry %stablis)ments Ira'i (inistry of 0il: retrieve < anuary 2>12? ;;5 !ase ,tuy on "raqMs Oil "nustry: Baker Institute: /ar&) 2>>? ;;6 "raqi parliament approves ne= overnment: BBC: 21 *e&ember 2>1>?
15
in t)e overall implementation of oil poli&y: en&ourain investments: &oorination bet=een t)e state-o=ne oil &ompanies an trainin &enters: an operation of infrastru&ture?;; "t is also responsible for publis)in information on revenue eneration: =)i&) in&lues mont)ly ata on prou&tion an e'ports?;;; 0eotiation of oil &ontra&ts is &arrie out t)rou) t)e ,tate Oil /ar#etin Oranisation ,O/O7? ;;< T)e /inistry also re&eives an &onsiers appli&ations for t)e establis)ment of &rue oil refineries after a overnorate or provin&e )as iven preliminary approval for t)eir &onstru&tion?;<> An: inasmu&) as it is t)e feeral overnments ministry in &)are of oil an as: it establis)es uielines for t)e measurement of )yro&arbon prou&ts?;<1 By means of t)e Oil (rou&ts *istribution !ompany O(*!7: t)e ministry provies an elivers t)e petroleum prou&t s neee for &ivilian: &ommer &ial an military a&tivities: as =ell as supplementin ele&tri&ity nees in orer to establis) perman ent po=er supplies?;<2 Aitionally it &ommans its o=n poli&e for&e: =)i&) is tas#e =it) t)e se&urity of t)e &ountrys oil infrastru&ture: preventin t)e smulin of &rue an fuel: an even t)e lo&ation an efusion of lan mines?;<3
%tate Oil *ar=etin5 Or5anisation %O*O! Role "raqs ,tate Oil /ar#etin Oranisation ,O/O7 is an important a&tor in t)e "raqi oil se&tor: eeme by t)e feeral overnment to be t)e sole boy investe =it) t)e aut)ority to oranise t)e sale an e'port of "raqi oil? T)e pro&ees of oil e'porte an mar#ete by ,O/O o to t)e &entral overnment in Ba)a?;;< ,O/O is also responsible for &overin lo&al &onsumption nees by pur&)asin an importin oil prou&ts su&) as asoline: as oil: #erosene an liqui petroleum as (.7?;<4 ,O/Os ire&tor as of 2>12 =as $ala) al-Amri:;<5 =)o also serve as "raqs representative to O(%!?;<6 ;; T)e Role of .overnment in Oil an .as: *ational Investment Commission : retrieve 23 0ovember 2>11? ;;; *omesti& !onsumption Ira'i (inistry of 0il, retrieve 23 0ovember 2>11? ;;< ,O/O is sole mar#eter of "raq oil J ministry: 6a&ya: 1> /ay 2>> "nstru&tions 0o? 17 of 2>><: Ira'i (inistry of 0il: retrieve 1; 0ovember 2>11? ;<1 "raqi national &oe for measurements of )yro&arbon fluis: IA(B Ira': retrieve 23 0ovember 2>11? ;<2 /inistry ,ervi&es: Ira'i (inistry of 0il , retrieve 23 0ovember 2>11? ;<3 T=elve Reasons )y "raq ill 0ot Be a /ajor Oil %'porter: (art One: "e (eant "ell: 6 /ay 2>11? ;<4 About +s: S0(0: retrieve 11 anuary 2>12? ;<5 "raq "n&reases *e&ember Oil %'ports by 1?11? ;<6 "raq fa&ts an fiures: 0P)C Ira': retrieve ; anuary 2>13?
15;
6istory After t)e nationali sation of "raqi petroleum resour&es in une 1<2: t)e "raqi overnment forme t)e .eneral *ire&torate for Oil /ar#etin .*O/7 to manae an run all mar#etin operations relate to &rue oil an its refine prou&ts? T)e transformation of t)e petroleum se&tor le to t)e merer of "raqs Oil Tan#ers !ompany =it) t)e .*O/: after =)i&) t)e *ire&torate be&ame #no=n as t)e ,tate Oil /ar#etin Oranisation ,O/O7? "n 1<<;: ,O/O be&ame a publi& &ompany reistere at t)e /inistry of Trae uner t)e name Oil /ar#etin !ompany? *espite its name &)ane: t)e abbreviation ,O/O =as preserve? ,O/Os ne= ientity as a publi&ly reistere &ompany ave it more fle'ibility an liberty to mar#et "raqi &rue oil an refine prou&ts in surplus of "raqs omesti& nees: a&&orin to "raq %nery %'po? ,in&e t)e 2>>3 +,-le invasion of "raq: in&rease in omesti& eman for some oil prou&ts le ,O/O to ain aut)orisation to import oil prou&ts for omesti& &onsumption?;< 0fficial "ebsite$ ===?somooil?ov?iq
Petroleum Contracts and Licensin5 Directorate PCLD! Role T)e (etroleum !ontra&ts an i&ensin *ire&torate (!*7 is a stru&ture uner t)e "raqi /inistry of Oil?;<; T)e (!* is responsible for t)e announ&ement an pre-qualifi&ation pro&esses of li&ensin rounsN t)e preparation of initial rafts of &ontra&ts an spe&ifi& te&)ni&al information of e'ploration blo&#sN t)e re&eption of qualifi&ation o&uments of international oil &ompanies "O!s7N &losin t)e qualifi&ation pro&ess an e&larin t)e resultsN t)e initial rafts of t)e &ontra&t an t)e initial tener proto&ol "T(7 an proviin te&)ni&al ataN re&eivin an ans=erin t)e "O!s inquiriesN issuin t)e efinitive moel &ontra&t an final tener proto&ol $T(7N an: t)e biin pro&ess itself?;<< As of April 2>12 t)e *ire&tor .eneral of t)e (!* =as Abul /a)i al-Ameei?<>> 0fficial "ebsite$ ===?p&l-iraq?&om
;< Oil /ar#etin !ompany ,O/O7: Ira' )nergy )51o: retrieve 11 anuary 2>12? ;<; "raq to +p)ol A&&or it) %''on /obil $or 0o=:M Al-Ameei ,ays: Bloomberg: 14 *e&ember 2>11? ;<< 4t) i&ensin Roun ,&)eule: Ira'i (inistry of 0il: retrieve 1; *e&ember 2>11? <>> Abul /a)i Al-Ameei: Ira' 0il 4orum: 2< April 2>12?
15<
North Oil Company NOC! Role T)e 0ort) Oil !ompany is a state &ompany =it)in t)e "raqi /inistry of Oil =)i&) oversees prou&tion in "raqs nort)ern fiels:<>1 notably t)e superiant ir#u# fiel?<>2 T)e &ompanys operation area spans t)e overnorates of ir#u#: 0ineve): %rbil: Ba)a: *iyala an part of Cilla an ut?<>1 Operatin in some of "raqs least se&ure territory: t)e &ompany )as been subje&t to repeate atta&#s by insurents an oranise &rime sin&e 2>>3? "n uly 2>>6 a ire&tor: Ael FaEEaE: =as #inappe in Ba)a <>3 an in ,eptember 2>12 a &ar bomb at t)e &ompany )eaquarters #ille at least seven people an =oune 1 ot)ers?<>4 T)e 0O! supplies &rue oil of ifferent types to "raqi refineries an asso&iate as to t)e 0ort) .as !ompany0.!7 units an to ele&tri& eneration stations: as =ell as for e'port t)rou) a net=or# of pipelines to Tur#ey an ,yria? <>1 "t )a over <:3>> employees on its boo#s in 2>>? <>5 "t provies )ousin for many of its employees: maintains a 2>>-be )ospital in ir#u# as =ell as 11 &lini&s a&ross its fiel of operations: a private telep)one ne=or# an a station an pipeline net=or# to pump rin#in =ater from t)e River @ab to installations at t)e ir#u# fiel?<>6 "n early 2>13 ,ameer ,alman al-Taei =as name ne= )ea of t)e 0O!: repla&in Cami al-,aei: =)o )a been *ire&tor .eneral sin&e 2>1>?<>
6istory T)e 0ort) Oil !ompany =as &reate follo=in t)e issolution of "raqs 0ational Oil !ompany "0O!7 in 1<;?<>5 )en al-,aei repla&e /anaa Abulla) al-+ba ii as )ea of t)e 0O! in anuary 2>1> t)e appointment prove &ontroversial as )e is a ,)iite from t)e sout)ern provin&e of /aysan: espite )avin =or#e in t)e 0ort) Oil !ompany for many years? T)e outoin +baii laue ,aeis e'perien&e but sai )is appointment =as Inot suitable for t)e spe&ial status of ir#u#I an a lo&al oil =or#ers union sent a letter protestin t)e appointment to t)e &ity aut)orities in ir#u#?<>;<>1 0ort) Oil !ompany (rofile: Ira'i (inistry of 0il: retrieve 3> *e&ember 2>11? <>2 "raq names 0ort) Oil !ompany )ea: /rade Arabia, 4 anuary 2>1>? <>3 Atta&#s on "raqi pipelines: oil installations: an oil personnel: Institute for the Analysis of lobal Security: retrieve 2> uly 2>1>? <>4 !ar bomb at "raq 0ort) Oil !ompany #ills seven: Agence 4rance Presse: < ,eptember 2>12? <>5 !ase ,tuy on "raqMs Oil "nustry: !ice University: /ar&) 2>>? <>6 /ain "nstallations: *orth 0il Com1any: retrieve 2> uly 2>1>? <> "raq 0ames 0e= *eputy Oil /inister: 0ort) Oil !o !)ief: !ig#one: ; anuary 2>13? <>; "raq names ne= )ea of 0ort) Oil !ompany: !euters: 4 anuary 2>1>? <>< "raq names ,)iite to )ea 0ort) Oil !ompany: !euters: 4 anuary 2>1>?
16>
0fficial "ebsite$ ===?no&?ov?iq
%outh Oil Company %OC! Role it) prou&tion output of just over 2 million barrels per ay bp7 as of anuary 2>12: "raqs state-run ,out) Oil !ompany ,O!7 is one of t)e biest prou&ers in t)e =orl an: a&&orin to Ira' 0il !e1ort: it is t)e ominant &ompany in "raq?<1> T)e Basra-base &ompany is run as an autonomous &ompany =it) its o=n manaement stru&ture =)i&): a&&orin to t)e Ba#er "nstitute: in&reasinly respons to reional leaers)ip?<11 "t )as operators)ip of "raqs sout)ern fiels: in&luin its biest prou&in fiel at Rumaila? <12 Ot)er #ey fiels in&lue @ubair: /ajnoon: est Furna an u)ais? T)e &ompany plays a #ey role in e'panin e'port infrastru&ture in orer to support t)e prou&tion ro=t) it )ire t)e international oil &ompanies "O!s7 to &reate? As of 2>12 t)e ,O! =as proressin =it) plans to fi' sinle-point moorins ,(/s7: &omplete meterin stations an pipelines in orer to ease e'ports: =it) plans to repair an uprae t)e e'istin al-Basra oil terminal ABOT7 to in&rease &apa&ity as a se&on p)ase?<1> "n 2>>6 t)e ,O! )a a staff of 14:2>> employees by *)ia affar?<1>
<11
an as of early 2>12 =as )eae up
6istory *urin t)e 1<>s t)e ,O! =as a subsiiary of t)e "raq 0ational Oil !ompany "0O!7? <13 "t re= t)rou)out t)e 1<>s as "raqs oil inustry e'pane: rea&)in pea# prou&tion levels of 2?5 million bp of oil?<14 T)e &ompanys operations =ere baly amae in t)e =ar of 1<<1 an aain in t)e =ar of 2>>3? But by early 2>>4 t)e ,O! )a manae to restore prou&tion of over 2 million bp?<14 "n uly 2>>5 t)e .eneral +nion of Oil %mployees: =)i&) &omprises t)ousans of =or#ers from t)e ,O!: =ent on a 24-)our stri#e: emanin t)at a larer s)are of oil revenues be sent ba&# to t)eir lo&al e&onomy: after t)e overnor of Basra /o)amme /osbe) Al-aeli &alle for t)e &entral overnment to ive a fair s)are of oil money to )is <1> F8A ,out) Oil !o? &)ief *)ia affar: Ira' 0il !e1ort: 15 $ebruary 2>12? <11 "raqs Oil ,e&tor "ssues an Opportunities: James A- Baker Institute for Public Policy: *e&ember 2>>6? <12 %'ploration an (rou&tion Business Report "raq: BP (aga#ine: 2>1>? <13 ,out) Oil !ompany: 0il ?oice: retrieve 1> anuary 2>13? <14 About t)e !ompany: South 0il Com1any: retrieve 6 anuary 2>12?
161
reion?<15 "n 2>>;: as plans for e'pansion of t)e "raqi oil inustry pro&eee: t)e /aysan Oil !ompany =as spun off from ,O!?<16 !ompany ire&tor $aya al-0em a =as remove from )is post in uly 2>>< in =)at t)e overnment sai =as Irestru&turinI? Co=ever a&&orin to t)e Arabian 0il and as =ebsite: it =as =iely believe t)at 0ema =as sa&#e be&ause )e oppose t)e au&tions of servi&e &ontra&ts for "raqi fiels to international oil &ompanies "O!s7?<1 0fficial "ebsite$ ===?so&-basra)?&om
Iraq Drillin5 Company IDC! Role T)e "raq *rillin !ompany "*!7 is a state-o=ne &ompany uner t)e "raqi /inistry of Oil =)i&) is lo&ate in Ba)a an ir#u# an spe&ialises in rillin an oil an as =ell =or#overs? "n 2>>6 it )a 1; ris in operation an employe 4:1> staff? <15 T)e "*! is ivie in t=o epartments t)e 0ort)ern Operations *epartment an t)e ,out)ern Operations *epartments?<1;
6istory T)e "*! =as forme as su&) in 1<;: =)en t)e "raq 0ational Oil !ompany "0O!7 =as isbane?<1< T)e first joint venture D7 in t)e post-,aam "raqi oil inustry o&&urre =)en a eal =as finalise in 2>>< bet=een t)e "*! an t)e /esopotamia (etroleum !ompany: from t)e +nite inom?<2> T)e "*! also sine a memoranum of unerstanin /o+7 for joint rillin an trainin opportunities =it) !A *%+TA.: a Britis) oil an as servi&e &ompany: in 2>1> ?<21 Alt)ou) t)e D =it) /esopotamia (etroleum !ompany eventually faile: in 2>11 t)e "*! =on a &ontra&t to rill in t)e Rumalia oil fiel toet)er =it) ,&)lumberer: t)e =orls larest oilfiel servi&es provier? <22 <15 "raqs Oil ,e&tor "ssues an Opportunities: James A- Baker Institute for Public Policy: *e&ember 2>>6? <16 0e= "raq oil firm aims to triple prou&tion in /aysan: !euters: 2; une 2>>;? <1 "raq Oil /inistry fires ,out) Oil !ompany &)ief: Arabian 0il and as: 3> uly 2>> 0ovember 2>11? <1< "raq 0ational Oil !ompany: An Cistori&al An (oliti&al (erspe&tive: (iddle )ast )conomic Survey 21 ,eptember 2>> "raq finaliEes oil rillin joint venture =it) /esopotamia (etroleum: Ira' 0il !e1ort: 26 $ebruary 2>>1>? <22 "*!s ,u&&ess ,tory: Ira' 0il 4orum: 22 uly 2>11?
162
"n 2>1> t)e "*! rille 1;< oil =ells an planne to rill an re)abilitate 14> ot)er =ells over t)e &ourse of 2>11? <23 "n 2>11 t)e "*! starte to rill an repair =ells in t)e Camrin mountains for t)e first time in 21 years? T)e mountains: lo&ate to t)e nort) of Ba)a: )a been a )aven for insurents: in&luin al-Faea: follo=in t)e 2>>3 o&&upation of t)e &ountry?<24
*aysan Oil Company *OC! Role T)e /aysan Oil !ompany /O!7 is responsible for fiels in t)e /aysan provin&e =)i&) in&lues si' prou&in fiels BaEeran: Abu-.)arb: $a##a an Calfaya7: as =ell as /ajnoon: =)i&) it operates in partners)ip =it) t)e ,out) Oil !ompany ,O!7? /aysan also )ols five is&overe but unprou&in fiels: in&luin t)e Cu=eiEa: al-RafiMe: %ast Rafian: *ujeila an umait fiels?<25 T)e &ompanys )eaquarters are in t)e &apital of /aysan provin&e: Amara? <26 /anain *ire&tor Ali /uarij =as reporte to )ave been remove from t)e post in une 2>11 after bein &)are =it) ba aministration an failure to a&)ieve )i)er oil prou&tion results urin )is tenure? <2 Co=ever as of mi-2>12 press reports sueste )e =as still in )is post as )ea of t)e &ompany?<2;
6istory /aysan Oil !ompany =as spun off from t)e ,out) Oil !ompany ,O!7 in 2>>; to eal =it) plans for e'pane prou&tion in /aysan overnorate?<2< T)e /aysan Oil !ompany =as &reate as part of a plan t)at aime for ea&) "raqi provin&e prou&in at least 1>>:>>> barrels per ay bp7 to )ave its o=n state-run oil &ompany to fo&us on evelopin its o=n oil fiels? Total oil output from /aysan provin&e =as bet=een 1>>:>>> an 11>:>>> bp =)en t)e &ompany =as &reate: <2< an t)e &ompany planne to in&rease output to 12>:>>> bp by t)e en of 2>11? <3> T)e start-up &apital of t)e &ompany =as +, G; million: a&&orin to overnment statements?;6 0fficial "ebsite$ ===?mo&?oil?ov?iq <23 "raqi *rillin !ompany - 14> ells in 2>11: Ira' Business *e&s: 1; anuary 2>11? <24 "raq ,tarts *rillin for Oil in Camrin /ountains: Ira' Business *e&s: 5 une 2>11? <25 $orein !ompanies een to or# for /issan Oil: Ira' Business *e&s: 1 *e&ember 2>11? <26 !onta&t +s: (aysan 0il Com1any: retrieve 5 anuary 2>12? <2 ,out) "raq /issanMs !oun&il sa&#s /issan Oil !ompanyMs *. from )is post: As&at Al3Ira': < une 2>11? <2; /issan )erals oil boom =it) Calfaya openin: Ira' 0il !e1ort: 1< uly 2>12? <2< 0e= "raq oil firm aims to triple prou&tion in /aysan: !euters: 2; une 2>>;? <3> "raq Aims to oin O(%! Fuota ,ystem in 2>14: Bloomberg: 26 O&tober 2>11?
163
Other Iraqi +ntities "raq )as numerous entities oranise uner t)e Oil /inistry in aition to t)e major prou&in &ompanies: =)i&) are liste an outline belo=?
North 0as Company N0C! T)e state-o=ne 0ort) .as !ompany 0.!7: base in ir#u# : <31 is responsible for t)e utilisation of all asso&iate ases prou&e at "raqs nort)ern fiels ry as use in ele&tri&ity eneration stations: fuel as use in ot)er inustrial fa&tories: an ra= materials use in t)e petro&)emi&al inustry in orer to manufa&ture fertilisersN liqui petroleum as (.7N natural asolineN an: sulp)ur?<32 0fficial &ebsite$ ===?n&?ov?iq
%outh 0as Company %0C! T)e state-o=ne ,out) .as !ompany ,.!7 is responsible for t)e pro&essin of asso&iate as from t)e "raqs sout)ern fiels in orer to prou&e ry as: liqui as an natural asoline: in aition to t)e inustrial manaement of liquefie as storae tan#s an e'port terminals?<33 "n 0ovember 2>11: !euters reporte t)e approval of a G1 billion eal bet=een t)e ,.!: Royal *ut&) ,)ell an /itsubis)i to &apture as t)at is flare off in t)e oilfiels aroun t)e sout)ern oil )ub of Basra? T)e eal establis)e a ne= &ompany &alle t)e Basra .as !ompany B.!7: a joint venture of t)e ,.! an t)e ,)ell/itsubis)i &onsortium: =)i&) &oul eventually lea to t)e e'port of liquefie natural as 0.7?<34 0fficial &ebsite ar$ ===?s&iraq?&om
North Refineries Company NRC! T)e state-o=ne 0ort) Refineries !ompany 0R!7 is t)e larest of t)e /inistrys refinin &ompanies? T)e 0R!s total refinin &apabilities as of O&tober 2>11 =ere estimate to be 4>2:>>> barrels per ay bp7? T)e 0R! prou&es various refine prou&ts: =)i&) in&lue unleae asoline: #erosene: aviation turbine: #erosene AT7: iesel an asoline: lubri&ant oil prou&ts: spinle oil: transformer oil: asp)alt: sulfur: liquefie refinery ases: an ot)ers? T)e 0R! operates t)e 0ort): ,alain: ,ininya: Fayara: asa#: ir#u# an Caeet)a refineries?<35 <31 0ort) .as !ompany: 6a&ya: retrieve 1> anuary 2>13? <32 0ort) .as !ompany 0.!7: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <33 ,out) .as !ompany: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <34 "raq Approves G1bn .as-!apture !ontra&t it) ,)ell: /itsubis)i: Ira' Business *e&s: 16 0ovember 2>11? <35 0ort) Refineries !ompany: *orth !efineries Com1any: retrieve 25 *e&ember 2>11?
164
T)e 0R! is )eaquartere at t)e Baiji Oil Refinery BOR7? <36 an as of April 2>12 t)e *ire&tor .eneral =as Abul .)afoor /o)ame Abul-abar?<3 0fficial &ebsite$ ===?nr&baiji?&om
*idland Refineries Company *RC! T)e state-o=ne /ilan Refineries !ompany /R!7 is responsible for t)e inustrial manaement an operation of oil refineries in t)e milan reion of "raq: su&) as t)e *aura refinery? T)e /R! prou&es a =ie rane of refinery prou&ts: =)i&) in&lue liqui petroleum as (.7: lubri&ant oils: reases: =a' an asp)alt? <3; "t =as establis)e in 1<53 an be&ame operative in 1<55? <3< T)e &ompany is )eaquartere at t)e *aura Refinery<36 an as of *e&ember 2>11 t)e *ire&tor .eneral =as *at)ar al-)asbab?<3; 0fficial &ebsite$ ===?auramr&?&om ar7
%outh Refineries Company %RC! T)e ,out) Refineries !ompany ,R!7 provies a variety of refine oil prou&ts an operates t)e Basra: *)i Far an /aysan refineries?<4> T)e &ompany is )eaquartere at t)e Basra Refinery<36 an as of mi-2>11 t)e *ire&tor .eneral =as Abul Cussein 0asir Fasim?<41 0fficial &ebsite$ ===?sr&?ov?iq
Oil Pro;ects Company %COP! T)e Oil (roje&ts !ompany ,!O(7 is responsible for t)e esin an e'e&ution of oil proje&ts refineries: oil epots: pipelines: storae tan#s: an e'portin &rue oil terminals?<42 As of late 2>11 t)e *ire&tor .eneral of ,!O( =as 0i)a /ousa: t)e first "raqi =oman to )ol t)is position in any of t)e subsiiary &ompanies of t)e "raqi Oil /inistry?<43 0fficial &ebsite$ ===?s&op?ov?iq
<36 "raqi Refineries (resent An $uture: "ikileaks: ; anuary 2>>12 &onferen&e proramme: 1 April 2>12? <3; /ilan Refineries !ompany /R!7 Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <3< *aura: (idland !efineries Com1any : retrieve 1> anuary 2>13? <4> *epartment: South !efineries Com1any: retrieve 25 *e&ember 2>11? <41 +, Approves .rant for Basra Refinery $easibility ,tuy: Ira' Business *e&s 25 uly 2>11? <42 Oil (roje&ts !ompany: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <43 0i)a /ousa: Ira' 0il 4orum: 2 O&tober 2>11?
165
Oil Pipelines Company OPC! T)e Oil (ipelines !ompany O(!7 is responsible for manaement an operation of oil epots: pumpin stations: an pipelines t)at lea to istribution epots an inustrial &onsumers?<44 "t is =it) t)e O(! t)at private &ompanies must sin &ontra&ts in orer to =or# on pipeline proje&ts in t)e &ountry? <45 0fficial &ebsite$ ===?op&?oil?ov?iq
Iraqi Oil 9an=ers Company IO9C! T)e "raqi Oil Tan#ers !ompany "OT!7: base in Basra: is responsible for seaborne transportation of oil in t)e "raqi oil inustry?<46 T)e "OT!s fleet =as almost estroye in t)e se&on .ulf ar? <46 Co=ever in 2>12 t)e &ompany put out a tener for t)e pur&)ase or &onstru& tion of a ne= &rue oil tan#er: =)i&) =oul be t)e overnments t)ir state-o=ne oil transport vessel: to a to t)e t=o &urrently in operation =)i&) =ere bou)t in 2>> an 2>>;?<4 0fficial &ebsite$ ===?iot&-basra?&om
Petroleum Research " Development Center PRDC! T)e (etroleum Resear&) 8 *evelopment !enter (R*!7 is a resear&) institute establis)e =it) t)e purpose of evelopin met)os of s&ientifi&: pilot an e'perimental resear&) for t)e oil inustry? "n t)is sense: t)e (R*! solves te&)ni& al problems relate to petroleum: evelops refinin te&)ni ques in orer to fin ne= prou&ts or improve petroleum prou&ts t)at alreay e'ist: provies s&ientifi& support an information servi&es to t)e "raqi oil inustry: follo=s t)e latest s&ientifi& an te&)noloi&al resear&) on oil inustry evelopment an reu&tion of environmental pollution: an sustains bilateral &ooperation efforts =it) "raqi universities: t)eir post-rauate stuents an professors?<4; 0fficial &ebsite$ ===?pr&?ov?iq
0as Fillin5 Company 0FC! T)e .as $illin !ompany .$!7 =as foune in 1<<;<4< an is responsible for inustrial <44 (ipe ine !ompany: Ira' )nergy )51o: retrieve on 25 *e&ember 2>11? <45 O.A, =ins G12m "raqi (ipeline (roje&t: Ira' Business *e&s: < O&tober 2>12? <46 "raqi Oil Tan#ers !ompany: Ira' )51o 0nline: retrieve 25 *e&ember 2>11? <4 "raq %'tens *ealine for !rue Tan#er Tener: Ira' Business *e&s: 1< April 2>12? <4; About t)e &enter: Petroleum !esearch 8 %evelo1ment Center : retrieve 25 *e&ember 2>11? <4< About +s: Ira'i as 4illing Com1any: retrieve 1> anuary 2>13?
166
manaement an operation of as fillin &omple'es? T)e &ompany re&eives as t)at is prou&e by t)e 0ort) .as !ompany 0.!7 an ,out) .as !ompany ,.!7 in orer to treat it an fill bottles to brin to mar#et ? <5> T)e &ompany plays an important role in supplyin t)e "raqi mar#et =it) liqui petroleum as (.7?<51 As of 2>12 t)e *ire&tor .eneral of t)e .$! =as Cami 9unis ,ale)?<51 0fficial &ebsite$ f&?oil?ov?iq
Oil trainin5 institutes T)e "raqi /inistry of Oil runs four state-o=ne oil trainin institutes t)rou )out t)e &ountry: spe&ifi&ally: in Ba)a BOT"7: Basra BasOT"7 : ir#u# OT"7 an Baiji BaiOT"7?<52<53 %stablis)e in 1<51: t)e "nstitute in ir#u# is t)e olest petroleum te&)ni&al institute in t)e /ile %ast? After t)e se&on .ulf ar: t)e institute as a =)ole =as transferre to Baiji: but in 2>>5 t)e institutes =ere separate an be&ame inepenent?<53 T)e "nstitute in Ba)a is &onsiere one of t)e larest Arab petroleum te&)ni&al institutes? T)e "nstitute in Basra is t)e se&on larest of t)ose t)at are run in "raq? All four institutes eu&ate t)eir stuents in a variety of te&)ni&al eu&ation &ourses relate to t)e oil inustry an sen t)eir stuents: later on in t)eir stuies: to petroleum inustry =or#sites for furt)er trainin an a&&limation to t)e inustrys =or# environment?<52 '+TI ,ebsite ===?boti?oil?ov?iq 'as+TI ,ebsite ===?bsroti?oil?ov?iq .+TI ,ebsite ===?#ir#u#oti?net 'ai+TI ,ebsite ===?otibaiji?oil?ov?iq
Other Iraqi actors
Iraqi *inistry of Finance T)e "raqi /inistry of $inan&e is responsible raftin t)e ta'es &ountrys buet an overseein its implementation: imposinfor an &olle&tin an fis&al &oorinatin <54 t)e payment of pensions an salaries of overnment employees? "t is also responsible for reportin t)e &ountrys offi&ial e'peniture ata?<55 <5> .as $illin !ompany: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <51 /inistry of Oil in&reases pumpin liqui as for a&tual nee: Ira'i *e&s: 14 Auust 2>12? <52 Ba)a Oil Trainin "nstitute: Baghdad 0il /raining Institute: retrieve 25 *e&ember 2>11? <53 About us: +irkuk 0il /raining Institute: retrieve 25 *e&ember 2>11? <54 /inistry of $inan&e "raq: (a1s of the "orld: retrieve 25 0ovember 2>11? <55 Report to !onressional !ommittees ,e&urin: ,tabiliEin: An Rebuilin "raq: United
16
T)e feeral buet: =)i&) is passe as a la= by t)e "raqi parliame nt: is rafte by t)e /inistry of $inan&e in &onsultation =it) ot)er ministries: overnorates an t)e reional overnment? T)e investment buet is rafte =it) t)e assistan&e of t)e /inistry of (lannin?<56 $rom t)e 2>>3 o&&upation on=ars: revenues from e'port sales of "raqi petroleum prou&ts =ere eposite into t)e *evelopment $un for "raq *$"7: an a&&ount )el by t)e !entral Ban# of "raq !B"7 at t)e 0e= 9or# $eeral Reserve Ban#? T)e *$" is manae by t)e "raqi /inistry of $inan&e an aministere by t)e !B"? %'penitures from t)e *$" are &arrie out via &)e&#s issue by t)e !B" upon instru&tion from t)e "raqi /inistry of $inan&e on t)e basis of t)e buet?<56 On t)e 21 *e&ember 2>1>: Rafi al-"sa=i be&ame $inan&e /inister an remaine in t)at position as of late 2>12?<5
Central ,an= of Iraq C,I! T)e !entral Ban# of "raq !B"7 =as establis)e on t)e 6 /ar&) 2>>4 on introu&tion of t)e !entral Ban# of "raq a=? T)e ban#s prin&ipal fun&tions are to maintain pri&e stabilityN implement monetary poli&y an e'&)ane rate poli&iesN manae forein reservesN issue an manae t)e "raqi &urren&yN an reulate t)e ban#in se&tor? T)e )ea offi&e of t)e !B" is in Ba)a an )as four bran&)es: lo&ate in Basra: /osul: ,u<5;
laymaniya) an %rbil? "n 2>11 "raqs ,upreme !ourt rule t)at t)e !B" an ot)er previously inepenent boies s)oul be put uner supervision of t)e !abinet instea of parliament: a rulin =)i&) t)e Huffington Post reporte as attra&tin &riti&ism for puttin t)e non-partisan nature of t)ese institutions at ris#?<5< $urt)er to t)is: "n O&tober 2>12 an arrest =arrant =as issue by t)e /inistry of "nterior for ,inan al-,)abibi : =)o )a le t)e ban# sin&e its &reation? T)e state reason for t)e arrest =ere alleations of finan&ial =ronoin: but overnment &riti&s see t)e &)ares as politi&ally motivate an an attempt by t)ose in po=er to sieline t)e politi&ally inepenent e&onomist<5< an to ain reater &ontrol over t)e +, G63 billion of reserves )el by t)e ban#? Toby *oe: "raq spe&ialist at t)e onon ,&)ool of %&onomi&s in onon: sueste t)at (rime /inister al-/ali#i )a Ilon =ante to a&&ess t)e ollar reserves t)at ,inan =as )olin ba&# to stabilise t)e "raqi inarI? <6> Abul Baset Tur#i: )ea of t)e ,upreme Auit Boar: =as name interim &entral ban# overnor after al-,)abibis suspension?<61 States overnment Accountability 0ffice : retrieve 25 0ovember 2>11? <56 "raq %'tra&tive "nustries: !evenue "atch Institute: retrieve 25 0ovember 2>11? <5 "raqi parliament approves ne= overnment: BBC: 21 *e&ember 2>1>? <5; Cistory of t)e !B": Central Bank of Ira': retrieve 25 0ovember 2>11?
<5< ,inan al-,)abibi: "raqi !entral Ban# !)ief: "ssue Arrest arrant Over !orruption Alleations: Huffington Post: 1; O&tober 2>12? <6> "raqi &entral ban# &)ief suspene: 4inancial /imes: 1 O&tober 2>12? <61 "raq *ismisses !entral Ban# !)ief Ami "nvestiation: "all Street Journal: 16 O&tober 2>12?
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Role in mana5ement of oil revenues $rom t)e 2>>3 o&&upation of "raq to uly 2>11: t)e !B" )a arranements =it) t)e $eeral Reserve Ban# of 0e= 9or# $RB097 =)ereby t)e $RB09 maintaine an oil pro&ees a&&ount t)at re&eive "raqi oil sales revenues? Of t)ese pro&ees: <5 per&ent =ere assine to t)e *evelopment $un for "raq *$"7: <62 &reate by a +nite 0ations ,e&urity !oun&il +0,!7 resolution in /ay 2>>3<63 an )ouse =it)in t)e !B"? T)e remainin 5 per&ent =as assine to t)e +nite 0ations !ompensation !ommissions fun a&&ount:<62 establis)e in 1<<1 for "raq to pay &ompensation for losses resultin from its invasion an o&&upation of u=ait in 1<<>?<64 *urin t)is perio: an oranisation &alle t)e "nternational Avisory an /onitorin Boar "A/B7 )a oversi)t of t)e operations of t)e *$"? T)is in&lue auit oversi)t: bot) over t)e &ontrol an reportin of oil e'port revenues: an over t)e use of revenues by t)e "raqi ministries? On t)e 1 uly 2>11 oversi)t of t)e *$" =as )ane over to t)e "raqi !ommittee of $inan&ial %'perts !O$%7? <65 T)e +0,! =el&ome t)e "raqi feeral overnments assumption of oversi)t an full aut)ority over its evelopment fun at t)e same time t)at it uners&ore t)e importan&e of t)e "raqi overnment ensurin t)at oil revenues are use in t)e interest of t)e &ountryMs people? <66
Iraqi Prime *inister4s Office T)e "raqi (rime /inister is t)e ire&t e'e&utiv e aut)ority responsible for t)e eneral poli&y of t)e state an t)e &ommaner-in-&)ief of t)e "raqi arme for&es? Ce ire&ts t)e !oun&il of /inisters: presies over its meetins: an )as t)e ri)t to ismiss any /inister =it) t)e &onsent of t)e !oun&il of Representatives? <6
Role in hydrocarbons industry )ile t)e (rime /inisterMs Offi&e is not ire&tly involve in t)e ay-to-ay manaement of t)e oil an as inustry: it is tas#e =it) monitorin evelopments an raisin issues for is&ussion at meetins of t)e !oun&il of /inisters? /ajor oil &ontra&ts =it) international &ompanies also require t)e approval of t)e !oun&il of /inisters? <6; T)e (rime /inisterMs Offi&e is also often ire&tly involve in neotiations bet=een politi&al blo&s =it) rears to propose leislation relate to t)e oil inustry? <6< <62 $,D! an !entral Ban# of "raq /eet to *is&uss 0e= !entral Ban# CF an $uture Arranements for *evelopment $un for "raq: 4inancial Services ?olunteer Cor1s: 14 une 2>1>? <63 "raq Transparen&y ,naps)ot: !evenue "atch Institute: retrieve 25 0ovember 2>11? <64 "ntrou&tion: United *ations Com1ensation Commission : retrieve 25 0ovember 2>11? <65 "A/B $un for "raq (ress Release: Ira' Business *e&s: 5 uly 2>11? <66 ,e&urity !oun&il =el&omes "raqMs assumption of oversi)t over evelopment fun: United *ations *e&s Service: 3> une 2>11? <6 "raqi !onstitution: United *ations Assistance (ission for Ira': retrieve 1; *e&ember 2>11? <6; Oil an as &ontra&ts in "raq: "ho9s "ho Legal: uly 2>1>? <6< Analysis Oil la= issent s)o=s &ra&#s in /ali#is overnment: Ira' 0il !e1ort: ; ,eptember
16<
T)e (rime /inisterMs Avisory Boar (/AB7: )eae by former Oil /inister T)amir .)aban: is tas#e =it) formulatin "raqMs lon-term stratei& oil poli&y? <><1 T)e (/ABMs enery avisor: Ali al-/as)at: is responsible for liaisin =it) international oranisations in&luin t)e orl Ban#?<1 ,tartin in $ebruary 2>11: a visa bla&#out t)at affe&te a variety of employees of international oil &ompanies: from labourers to prospe&tive investors: manaers to te&)ni&ians =it) spe&ialise s#ills: =as reporte in /ar&) of t)e same year by Ira' 0il !e3 1ort journalists? T)is =as base on t=o anonymous sour&es: as t)e result of a e&ision by t)e (rime /inisters Offi&e t)at appli&ations for visas s)oul o t)rou) t)emselves an not t)e "raqi /inistry of "nterior?<2 0fficial &ebsite$ ===?pmo?iq
8urdistan Re5ional 0overnment 8R0! T)e %rbil-base uristan Reional .overnment R.7 is t)e offi&ial an emo&rati&ally ele&te e'e&utive boy of t)e uristan Reion: also #no=n as "raqi uristan? An autonomous reion of "raq sin&e 1<<2: "raqi uristan re&o nstitute itself as a feeral reion upon t)e ratifi&ation of t)e ne= 2>>5 "raqi &onstitution?<3 Rat)er t)an t)e te&)ni&al servi&e areements offere by t)e &entral overnment: t)e R. instea offers prou&tion s)arin &ontra&ts (,!s7 to investors in t)e reion: per&eive by many as more enerous to international &ompanies: a&&orin to inustry analyst *ere# Bro=er?<4
0overnment structure and leadership T)e (resient of t)e R.: =)o eleates e'e&utive po=ers to t)e &abinet: is ire&tly ele&te?<5 T)e &abinet sele&ts t)e )ea of t)e leislature: t)e (rime /inister?<6 R. (resient /assou BarEani =as ele&te in 2>>5 < an re-ele&te in 2>>< =it) 1 per&ent of t)e vote? (rior to t)is )e =as leaer of t)e uristan *emo&rati& (arty *(7: one of t)e main parties &ontrollin t)e reion sin&e 1<<1? *urin t)e 1<<>s t)e *( =as at =ar =it) t)e ot)er leain politi&al fa&tion in t)e reion: t)e (atrioti& +ni2>11? <> F8AT)amir Abbas .)a)ban: Society of Petroleum )ngineers : retrieve 1; *e&ember 2>11? <1 "raq Outlines Oil (rou&tion ,tratey To 2>3>: )nergia, 2> O&tober 2>11? <2 "raq %ntry Disa Fuamire Blame on al-/ali#i: Ira' Business *e&s: 23 /ar&) 2>11? <3 About t)e uristan Reional .overnment: +urdistan !egional overnment, etrieve 1; 0ovember 2>11? <4 About t)e uristan Reional .overnment: Petroleum )conomist: 13 *e&ember 2>12? <5 urisan Reion (resien&y: +urdistan !egional overnment: retrieve 23 0ovember 2>11? <6 (rime /inister ,ali) plees rene=al as &abinet is s=orn in +urdistan !egional overnment, 2< O&tober 2>>>?
1>
on of uristan (+7: uner t)e leaers)ip of alal Talabani? <; Talabani =ent on to be ele&te (resient of "raq in 2>>5? << As of *e&ember 2>12 0e&)irvan BarEani =as (rime /inister of t)e uristan reion: a man =)o /ime maaEine &reite =it) t)e ro=in Tur#is)-uris) rappro&)ement?<;> T)e reions 0atural Resour&es /inister as of *e&ember 2>12 =as As)ti Ca=rami?<4 T)e "raqi uristan (arliame nt e'amines proposals for ne= la=s: s&rutinises overnment poli&y an aministration: an ebates major issues t)at &on&ern t)e reion? Alt)ou) t)e reional (arliament s)ares =it)tot)e "raqi feeral overnment: priority is iven to reional la=s leislative in matters po=er t)at relate &ustoms: ele&tri& enery an its istribution: eneral plannin: an internal =ater resour&es? %le&tions are )el at least every four years?<;1
Relations $ith central 5overnment Over re&ent years relations bet=een t)e &entral overnment an t)e R. )ave eteriorate: provo#e by &ontra&ts sine bet=een oil majors an t)e R.: vie=e as illeal by t)e overnment in Ba)a? A&&orin to meia site Al3(onitor: t)is &an be attribute to a number of reasons: one bein t)e &omplete brea#o=n of trust bet=een t)e t=o sies: parti&ularly t)e amae relations)ip bet=een 0ouri al-/ali#i an /assou BarEani: aravate by strins <;2
of a&&usations? Asie from t)is: leaers in Ba)a )ave ispute t)e ri)t for t)e urs to e'port t)e oil t)ey prou&e: outsie of t)e &entrally &ontrolle infrastru&ture? $urt)ermore t)e R. &laims &ontrol over lare areas of ispute territories an )as enliste international oil &ompanies "O!s7 to e'plore an prou&e in t)ese areas: =)i&) overlap t)e bounaries of 0ineve): ir#u#: ,alain an *iyala provin&es? "n late 2>12 Ira' 0il !e3 1ort reporte t)at t)e &entral overnment an t)e urs &ame &lose to open &onfli&t =)en bot) eploye troops near t)e &onteste borer area bet=een nort) an sout): on territory =)ere +, &ompanies %''on/obil an Cunt Oil )a aree to rill? Co=ever offi&ials on bot) sies of t)e &onfli&t )ave sai t)at =ar is not in eit)er sies interest an may be a &onsequen&e of t)e )eate run-up to provin&ial an national ele&tions in 2>13-14?<;3 "n *e&ember 2>12 t)e t=o sies aree to raually =it)ra= t)eir troops from t)e ispute territori es? Co=ever a&&ori n to Tur#eys Hurriyet <;4
%aily *e&s: t)e &las) raise questions about Ba)aMs feeral unity =it) t)e R.? <; /assou BarEani - $ast $a&ts: C**: 14 *e&ember 2>12? << alal Talabani: *e& .ork /imes: 1; *e&ember 2>12? <;> An "ntervie= =it) 0e&)irvan BarEani ill T)ere Be an "nepenent uristanH: /ime: 21 *e&ember 2>12? <;1 T)e uristan (arliament: +urdistan !egional overnment, retrieve 3> 0ovember 2>>6? <;2 Ba)a-R. Relations .o from Ba to orse: Al3(onitor: 16 *e&ember 2>12? <;3 *ispute oil rillin &oul provo#e =ar: Ira' 0il !e1ort: 12 *e&ember 2>12? <;4Ba)a: R. aree to =it)ra= soliers from ispute area: Hurriyet %aily *e&s: 15 *e&ember 2>12?
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0fficial &ebsite$ ===?#r?or
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Overvie$ of Infrastructure in Iraq Re&urrin &onfli&t in "raq )as left mu&) of t)e e'istin enery infrastru&ture eit)er amae or in a poor state of repair? T)e "nternational %nery Aen&y "%A7 earmar#e t)e state of "raqs enery transport: storae an e'port infrastru&ture as a serious &onstraint to proress in t)e enery se&tor?<;5 "n orer to rea&) its state prou&tion tarets: "raq =ill )ave to e'pan its e'port &a pa&ity? By la= t)e &ountrys oil infrastru&ture is in t)e )ans of t)e state? *eputy (rime /inister for enery Cussein ,)a)ristani )as sai t)at +, G5>> billion of investment =ill be neee to lift oil prou&tion in line =it) tarets? <;6 A&&orin to t)e "%A: suffi&ient oil storae an transportation &apa&ity =ill also be neee to avoi over-relian&e on t)e sout)ern sea-borne e'port route?<;5
Refineries A lea#e +, iplomati& &able from 2>>< &ommente on t)e poor maintenan&e an antiquate esin of "raqs refinery infrastru&ture? )ereas moern refineries prou&e ;> to <> per&ent of a barrel of oil into li)t or meium istillates: "raqs refineries prou&e bet=een 5> an 55 per&ent: t)us &reatin lare amounts of )eavy fuel oil? <; "raqs prin&ipal refineries are at Basra: *aura: an Baiji? T)e &ountrys refineries are ivie bet=een t)ree operatin &ompanies t)e 0ort) Refineries !ompany 0R!7: t)e /ilan Refineries !ompany /R!7: an t)e ,out) Refineries !ompany ,R!7? <; T)e fa&ilities at Baiji: *aura an Basra a&&ount for aroun > per&ent of total output?<;5 T)e &ountrys oil pro&essin fa&ilities )ave run belo= &apa&ity follo=in t)e 2>>3 invasion? As of O&tober 2>12 overall refinin &apa&ity in "raq stoo at aroun 62>:>>> barrels per ay bp7: )o=ever follo=in a series of e'pansions: parti&ularly at t)e *aura an Basra fa&ilities: t)e "raqi overnment )ope to e'pan t)is by 23 per&ent to rea&) 6>:>>> bp by early 2>13? <;; But estimates iffer an a&&orin to a +, iplomati& &able from early 2>><: esin refinin &apa&i ty in "raq stoo at appro'imately 4>:>>> bp?<; A&&orin to a lea#e +, iplomati& &able from 2>><: plans to moernise an e'pan "raqs refine ries )ave move slo=ly ue to iffi&ult &ontra&tin pro&eures: a s)ortae of s#ille staff an unreliable ele&tri&ity supplies ma#in operation of equipment unsafe?<; T)e &ountry is also plannin to buil four ne= refineries at a &ost of aroun G25 billion: in&luin a 3>>:>>> bp plant in 0asiriya) an a 14>:>>> bp plant <;5 "raq %nery Outloo#: International )nergy Agency: 12 0ovember 2>12? <;6 ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12? <; "raqi Refineries (resent An $utur:e "ikileaks: ; anuary 2>>12?
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in arbala?<;< "n t)e nort)ern uristan reion t)e majority of offi&ial refinin &apa&ity is provie by t)e )abat refinery near %rbil<<> &apa&ity of 4>:>>> bp in 2>1>7? <<1 Ot)er refineries in t)e reion are BaEian in ,ulaymaniya) an at in ir#u#? Ira' 0il !e1ort estimate in 2>12 t)at t)e reions major refineries are &apable of pro&essin 66:>>> bp in total: an t)e overnment )a plans to e'pan &apa&ity =it) t=o ne= refineries? "n aition: in 2>12 t)ere =ere an estimate ;>-1>> so-&alle toppin plants available to t)e R.: t)at is smaller an less effi&ient fa&ilities =it) an estimate &umulative &apa&ity of 15>:>>> bp?<<>
9erminals "raq )as t=o terminals at Basra an )or al-Amaya? +p until t)e &onstru&tion of t=o ne= e'port terminals at )or al-Amaya in /ar&) 2>12: Basra =as t)e &ountrys main e'port terminal: =it) t)e terminal at )or al-Amaya )anlin only small volumes? <<2 T)e %"As 2>12 report notes t)at t)e la&# of suffi&ient storae in t)e sout) of "raq is a parti&ular problem: meanin t)at any elays or =eat)er-relate interruptions to loain tan#ers at t)e offs)ore fa&ilities &an lea ire&tly to a prou&tion s)ut-o=n? 0e= storae &apa&ity =as bein built in 2>12 at t)e main e'port epot at $ao: but furt)er e'pansion of &apa&ity =as require?<<3
Pipelines A&&orin to Ira' 0il !e1ort: "raqs &rue pipelines are lon overue for inspe&tion an =oul nee to be uprae or repla&e if "raq is to su&&ee in in&reasin its oil e'ports? T)e &ountry urently nees to e'pan its &apa&ity an fin alternative e'port routes: as t)e primary e'port route t)rou) Basra is loisti&ally &onstraine to aroun 5 million barrels per ay bp7 of e'ports: =)ile "raq is loo#in to in&rease prou&tion &apa&ity to ; million bp by 2>1;?<<4 Asie from t)e e'port terminals at Basra an )or al-Amaya: "raqs ot)er prin&ipal e'port route is t)e nort)ern pipeline route to !ey)an? A&&orin to t)e /inistry of Oil t)e ma'imum &apa&ity alon t)is route in uly 2>12 =as 6>>:>>> bp: far belo= t)e nameplate &apa&ity of 1?6 million bp? A&tual flo= rates averae just over 3>>:>>> bp?<<3 T)e pipeline system from "raq to Tur#ey suffere mu&) amae urin "raqs =ars: &ausin a fall in &apa&ity? "raqs reversible nort)-sout) pipeline: t)e ,tratei& (ipeline =as also amae by t)e &onfli&t an &an &arry only a fra&tion of its 1?4 million bp &a<;< "raq (lans to Boost Oil-Refinin !apa&ity by 23V %arly 0e't 9ear: Bloomberg: 4 O&tober 2>12? <<> R. oil eals buoye by refinery plan: Ira' 0il !e1ort: 2< /ar&) 2>12? <<1 uris) Refinery to ,tart ,ellin (etrol: Ira' Business *e&s: ; *e&ember 2>1>? <<2 "raq ramps up its &rue e'ports: Lloyd9s List Intelligence: 2> ,eptember 2>12? <<3 "raq %nery Outloo#: International )nergy Agency: 12 0ovember 2>12? <<4"raq sets oran pipeline into motion: Ira' 0il !e1ort: 2 anuary 2>13?
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pa&ity?<<5 "raq )as announ&e plans in t)e past to rebuil its national stratei& pipeline net=or#: &allin for e'panin &apa&ity into Tur#ey an openin routes to bot) oran an ,yria? A straine relations)ip =it) Tur#ey an &onfli&t in ,yria &ompli&ate t)ese plans? But in 2>12 t)e "raqi overnment set a taret of &reatin 1 million bp of e'port &apa&ity to oran: via a 1:6;> #ilometre pipeline from Basra: up to Cait)a an into oran? T)is =oul be t)e first &ross-borer pipeline &onstru&te sin&e t)e "raq (ipeline t)rou) ,aui Arabia "(,A7 =as built in t)e 1<;>s an later e'propriate by t)e ,auis?<<6 T)e "raq (ipeline t)rou) ,aui Arabia "(,A7 remaine out of operation in early 2>13 espite tal# of rea&tivation?<<
Other pro;ects ,in&e 2>>; t)e "raqi overnment )as also been pursuin a proje&t to &apture an use surplus as prou&e at t)e &ountrys sout)ern fiels: in &ollaboration =it) oil major ,)ell: #no=n as t)e ,out) .as +tilisation (roje&t see separate arti&le7?<<;
Refineries
,ai;i Refinery Baiji: lo&ate rou)ly 1;> #ilometres nort) of Ba)a: is "raqs larest refinery<<< an supplies 11 "raqi provin&es =it) refine petroleum prou&ts? 1>>> "t =as built in 1<;2 1>>1 an is part of a &omple' t)at in&lues a t)ermal po=er plant: also t)e larest in t)e &ountry: =)i&) is a major &ontributor to Ba)as ele&tri&ity supply?1>>2 Baiji is operate by t)e t)e 0ort) Refineries !ompany? 1>>3 A&&orin to t)e "%A in 2>12: Baiji: li#e ot)er refinin infrastru&ture in "raq: =as in urent nee of uprain?1>>4
<<5 ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12? <<6 "raq sets oran pipeline into motion: "ra' 0il !e1ort: 2 anuary 2>13? << !ir&umventin t)e ,trait of CormuE Bottlene&#: Atlantic Sentinel: 2> *e&ember 2>11? <<; ,)ell sins _11bn eal to fuel "raqs po=er stations =it) as: uardian: 2 0ovember 2>11? <<< All units at "raqMs Baiji oil refinery re-starte: Arab *e&s: 25 une 2>11? 1>>> +(*AT% 2-"raq Baiji refinery says restarts partial operation: !euters: 2; $ebruary 2>11? 1>>1 "raqs Baiji refinery ba&# to normal: 4rance :: 4 /ar&) 2>11? 1>>2 Bayji PBeijiQ: lobal Security: retrieve 14 *e&ember 2>11? 1>>3 T)e biest 25 refineries in t)e /ile %ast: Arabian 0il and as: retrieve 14 *e&ember 2>11? 1>>4 "raq %nery Outloo#: I)A: 12 0ovember 2>12?
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Capacity A&&orin to a lea#e +, iplomati& &able: t)e esin &apa&ity at Basra in 2>>< =as 31>:>>> barrels per ay bp7: a&&ountin for 4> per&ent of t)e &ountrys overall esin &apa&ity? Co=ever t)e istin&tion is )i)li)te bet=een Iesin &apa&ityI an Ioperational &apa&ityI: notin t)at t)e BOR )as an operational &apa&ity of appro'imately 5 per&ent of its esin &apa&ity: larely ue to iffi&ulties in a&quirin spare parts for maintenan&e: amae &ause by unreliable ele&tri&ity supplies: t)e lon-term effe&ts of t)e san&tions perio: an a s)ortae of )i)ly s#ille =or#ers? As of early 2>>< total operations &apa&ity =as appro'imately 65:>>> bp or 1> per&ent7 lo=er t)an esin &apa&ity?1>>5 As of mi-2>11: t)e Baiji refinery =as fun&tionin at about > per&ent of its 31>:>>> barrel per ay bp7 &apa&ity: a&&orin to Arab *e&s? Co=ever ot)er press sour&es estimate total &apa&ity at t)e lo=er fiure of 3>>:>>> bp? 1>>6 Co=ever t)is &oul be a result of a la&# of &larity over prou&tion levels an esin &apa&ity? On 22 0ovember 2>11 t)e apanese (rime /inister 9os)i)i#o 0oa announ&e a loan of G35 million for "raq to uprae enineerin servi&es to moernise t)e Baiji refinery: an on 2; 0ovember +,-base firm Coney=ell announ&e it )a obtaine a &ontra&t to uprae t)e refinerys &ontrol an pro&ess system?1>>
%ecurity T)e refinery =as )eavily amae urin bombin in 1<<1 .ulf ar? "n t)e years follo=in t)e 2>>3 invasion Baijis supply &)ain: espe&ially a pipeline &arryin &rue oil from t)e superiant ir#u# fiel: =as t)e subje&t of repeate atta&#s by insurents an oranise &rime syni&ates? T)e refinery itself =as also tarete: an prou&tion =as interrupte on numerous o&&asions?1>>; Baiji =as s)ut o=n aain in late $ebruary 2>11 =)en insurents etonate several bombs: #illin t=o people an amain several units? T)e atta&# )alte t)e prou&tion of aroun 15>:>> bp of petroleum prou&ts:1>>< but prou&tion levels returne to normal in early /ar&) 2>11?
,asra Refinery Also #no=n as t)e As) ,)aabiya refinery: 1>1> t)e Basra Oil Refinery BOR7 is lo&ate in t)e far sout) of t)e &ountry about 545 #ilometres #m7 from Ba)a an 55 #m from t)e (ersian .ulf? Basra is "raqs primary terminal point for oil pipelines an is also t)e 1>>5 "raqi Refineries (resent An $uture: "ikileaks: ; anuary 2>>>6 Baiji refineryMs &apa&ity rea&) 3>>:>>> barrels per ay J ministry: Ira'i *e&s: 21 /ar&) 2>11? 1>> Coney=ell Cas G36> /ln Of !ontra&ts "n "raq - %'e&utive: "all Street Journal 2; $ebruary 2>11? 1>>; "raq (ipeline at&) Institute for the Analysis of lobal Security: 2 /ar&) 2>>;? 1>>< Bombin *amaes "raqMs arest Oil Refinery: *e& .ork /imes: 26 $ebruary 2>11? 1>1> "raqMs Baiji Refinery +nit to Restart 0e't ee#: /inistry ,ays: Bloomberg: 2; $ebruary 2>11?
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site of "raqs &)ief e'port terminal?1>11 T)e refinery bean prou&tion in 1<4 1>12 an =as )eavily amae in t)e 1<;>-1<;; "ran-"raq =ar? T)e &omple' is o=ne an operate by "raqs ,out) Refineries !ompany?1>13
Capacity A&&orin to a lea#e +, iplomati& &able: Iesin &apa&ityI at t)e Basra refinery in 2>>< =as at 16>:>>> barrels per ay bp7? Co=ever operational &apa&ity =as appro'imately 15 per&ent of t)is fiure? 1>14 "n ot)er press sour&es t)ere are some is&repan&ies in t)e &apa&ity fiures &ite: =it) many sour&es &laimin 14>:>>> bp of prou&tion: an Arabian 0il and as &itin a fiure of 21>:>>> bp? 1>151>161>1 "n uly 2>11: t)e +, Trae an *evelopment Aen&y sine an areement =it) t)e ,out) Refineries !ompany for a rant of G5>2:<; to &onu&t a feasibility stuy for t)e uprae an re)abilitation of t)e refinery? T)e refinerys moernisation is intene to support t)e "raqi /inistry of OilMs oal to rea&) a &apa&ity of 12 million barrels per ay in prou&tion by 2>2>?1>1;
Daura Refinery 1>1<
T)e *aura refinery =asofbuilt in 1<53Operate an beanbyoperations in 1<55? "t is!ompany lo&ate 2> #ilometres sout)-=est Ba)a? "raqs /ilan Refineries 1>2> 1>21 /R!7: t)e *aura refinery is "raqs se&on-larest? T)e refinery itself an pipelines supplyin it =it) &rue oil =ere atta&#e numerous times by insurents bet=een 2>>3 an 2>>;?1>22
Capacity *auras refinin &apa&ity )as unerone major flu&tuations? "t =as e'pane in 1<<6 to nearly 13>:>>> barrels per ay bp7: but its &apa&ity )a fallen to 11>:>>> bp by 1>11 Basra): lobal Security: retrieve 5 anuary 2>12? 1>12 Comepae: South !efineries Com1any: retrieve 5 anuary 2>12? 1>13 Basra) Refinery: A Barrel 4ull Retrieve 5 anuary 2>11? 1>14 "raqi Refineries (resent An $uture: "ikileaks: ; anuary 2>>15 "raq eyes uprae for Basra refinery: "orld /ribune: 25 /ay 2>12? 1>16 ,)a= to !onu&t $easibility ,tuy to Basra Refinery: ulf 0il and as: 13 *e&ember 2>11? 1>1 Top 22 Reional *o=nstream (roje&ts: Arabian 0il and as: 2< O&tober 2>12? 1>1; +nite ,tates approves rant for Basra) refinery feasibility stuy: US )mbassy Baghdad : 21 uly 2>11? 1>1< *aura Refinery %'pansion On ,&)eule: Business (onitor International: 26 O&tober 2>>2> "raq - T)e *aura Refinery: APS !evie& %o&nstream /rends: 11 /ay 2>11? 1>21 Bombs in *aura refinery intensify se&urity s&are: Ira' 0il !e1ort: 1 une 2>11? 1>22 "raq (ipeline at&): Institute for the Analysis of lobal Security: 2 /ar&) 2>>;?
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2>>5?1>23 A lea#e +, iplomati& &able from anuary 2>>< &laime a esin &apa&ity of <>:>>> bp: but note t)at t)e refinery reularly operate at 5> per&ent &apa&ity ue to inaequate supplies of &rue oil: as t)e ,tratei& (ipeline =as unable to fuel all of t)e users alon its route?1>24 Bet=een 2>>< an 2>11: t)e refinerys &apa&ity =as raise to 21>:>>> bp follo=in t)e &onstru&tion of ne= units: an remaine at t)is level as of mi-2>11? 1>25 "n late 2>12 *eputy Oil /inister A)ma al-,)amaa announ&e t)at e'pansion of t)e *aura refinery =oul be a &omponent of plans to in&rease overall refinin &apa&ity by 23 per&ent by 2>13?1>26
+rbil Refinery O=ne by t)e AR .roup: %rbil refinery is t)e first major refinery in t)e nort)ern uristan reion an t)e first private se&tor refinery in "raq? "t re&eive its first oil in 2>>2 $eesto&# for t)e %rbil refinery &omes from t)e ispute ir#u# fiel? 1>2; T)e refinery proje&t is a #ey part of e'pansion plans in t)e uristan reion in orer to absorb in&reasin prou&tion levels uner t)e uristan Reional .overnment R.7?1>2; T)e +s 4inancial /imes es&ribe t)e proje&t as a Isymbol of private: lo&al investment in uristan - an of t)e reions ambitions?I 1>2< !onstru&tion oriinally bean on t)e refinery in 2>>5 uner a &ontra&t bet=een t)e "raqi /inistry of Oil an t)e "raqi /inistry of "nustry an /inerals? Co=ever follo=in elays an buet iffi&ulties: t)e R. intervene in late 2>>; an a=are t)e &onstru&tion &ontra&t to t)e AR .roup?1>2
Capacity A&&orin to t)e AR .roup: t)e &omple' )a an initial &apa&ity of 2>:>>> barrels per ay bp7? "n late 2>11 t)e refinery =as pro&essin 4>:>>> bp of &rue: but follo=in an e'pansion plan =as e'pe&tin to nearly triple t)e fiure to 11>:>>> bp by late 2>12? AR founer BaE arim estimate t)at on&e t)e e'pansion is &omplete: t)e refinery =ill be able to &ater for &lose to ;> per&ent of lo&al nees?1>2<
1>23 "RAF - T)e *aura Refinery: APS !evie& %o&nstream /rends, < /ay 2>>5? 1>24 "raqi Refineries (resent An $uture: "ikileaks: ; anuary 2>>25 "raq - T)e *aura Refinery: APS !evie& %o&nstream /rends, 11 /ay 2>11? 1>26 "raq (lans to Boost Oil-Refinin !apa&ity by 23V %arly 0e't 9ear: Bloomberg: 4 O&tober 2>12? 1>2 %rbil Refinery: +A! rou1: retrieve 15 anuary 2>13? 1>2; R. oil eals buoye by refinery plan: Ira' 0il !e1ort: 2< /ar&) 2>12? 1>2< Refinin *omesti& pro&essin &apa&ity is risin qui&#ly: 4inancial /imes: *e&ember 2>11?
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Terminals
8hor al.Amaya Oil 9erminal 8AAO9! T)e )or al-Amaya oil terminal AAOT7: alon =it) "raqs Basra Oil Terminal: is use to e'port Basra blen &rue?1>3> T)e terminal =as built in 1<61 1>31 an lies sout)-east of t)e Al-$a= peninsula in t)e Arabian .ulf?1>32 !rue prou&e at "raqs sout)ern fiels: or pro&esse at omesti& refineries: is sent onto ons)ore storae fa&ilities an e'porte into t)e .ulf via AAOT? A&&orin t)e "nternational %nery Aen&y "%A7 analysis from a 2>12 report: 113:>>> barrels per ay bp7 is e'porte via t)is route: &ompare to 1?5 million bp via t)e Basra terminal an 442:>>> bp into t)e .ulf via sinle point moorin ,(/s7?1>33
Capacity )en t)e AAOT re-opene for e'ports after t)e 2>>3 invasion of "raq: it )a an initial &apa&ity of 3>>-4>>:>>> barrels per ay bp7?1>34 By 2>11 it still )a an effe&tive &apa&ity of 3>>:>>> bp?1>35
%ecurity A&&orin to t)e + /inistry of *efen&e: sin&e 2>>3 +: +, an Australian naval for&es =ere &ommitte to almost roun-t)e-&lo&# patrols of t)e =aters aroun )or al-Amaya: until responsibility =as )ane over to "raqi for&es?1>36 "n a 2>>< +, lea#e iplomati& &able: it =as reporte t)at an "ranian letter &laimin t)at t)e AAOT =as lo&ate in "ranian territorial =aters )a alarme "raqi offi&ials?1>3
,asra Oil 9erminal A,O9! T)e al-Basra Oil Terminal ABOT7: formerly #no=n as /ina al-Ba#r: =as built in 1<5 1>3;
by t)e "raq 0ational Oil !ompany? "t lies some 5> #ilometres off t)e "raqi &oast? 1>3> "raqi Oil "nustry: IAS rou1: /ar&) 2>11? 1>31 Oil /inister !ompla&ent About +pstream (rou&tion (lans: "ikileaks: < April 2>>32 %'&avatin a pat) t)rou) "raqMs une'ploe ornan&e: 0il 0nline: < ,eptember 2>11? 1>33 "raq %nery Outloo#: International )nergy Agency: 2>12? 1>34 "raqi Ameri&an !)amber of !ommer&e an "nustry: IAS rou1: /ar&) 2>11? 1>35 "raqi Oil "nustry: IAS rou1: /ar&) 2>11? 1>36 ast "raq oil terminal patrol for Royal 0avy: U+ (inistry of %efence: 25 anuary 2>11? 1>3 Oil /inister !ompla&ent About +pstream (rou&tion (lans: "ikileaks: < April 2>>3; Al Basra) Oil Terminal: S1ecial Ins1ector eneral for Ira' !econstruction: 26 April 2>>?
1<
Capacity As of mi-2>11 ABOT )a an effe&tive e'port &apa&ity of about 1?5 million barrels per ay bp7 of oil: )anlin about ;> per&ent of "raqs e'ports?1>3< Co=ever in ,eptember 2>1> "raqMs &abinet approve a +, G33 million eal to buil a ne= oil e'port terminal: =it) a &apa&ity of 1?; million bp: at t)e site? 1>4> Over 2>12 t=o sinle-point moorin systems &ame on stream: ea&) =it) a &apa&ity of <>>:>>> bp? T=o furt)er systems =ere ue to &ome on stream in 2>13: brinin total e'port 1>41
&apa&ity out of t)e sout) to 4?5 million bp?
Impact of conflict T)e terminals infrastru&ture )as been baly amae by years of =ar an instability?1>42 /ajor e'pansion =or# =as stalle by t)e outbrea# of t)e "ran-"raq ar in ,eptember 1<;>? T)e terminal =as )eavily amae in t)e fi)tin an e'ports i not resume until t)e =ar ene in 1<;;-43 T)e Basra terminal suffere furt)er serious amae urin t)e se&on .ulf ar in anuary 1<<1 an e'ports =ere )alte &ompletely? "raq manae to start repairs at ABOT in t)e 1<<>s: but it =as only possible to e'port aroun 4>>:>>> bp t)rou) t)e terminal? By 2>>3 its &apa&ity rea&)e some 1?3 million bp? *urin t)e +,-le invasion t)e terminal =as &apture by +, 0avy ,eals in a ni)t-time amp)ibious atta&# in t)e =ar of 2>>3?1>44
Pipelines
8ir=u=.,anias Pipeline IPC! T)e ;;>-#ilometre ir#u#-Banias pipeline =as first brou)t online in 1<52 an transporte oil from ir#u# in &entral-nort)ern "raq to t)e port of Banias in ,yria? A&&orin to Pi1elines International: t)e builin of t)e pipeline mar#e a sinifi&ant moment in t)e evelopment of "raqs petroleum inustry?1>45 1>46 T)e pipeline stoppe operatin in 2>>3 urin t)e +,-le invasion of "raq an as of late 2>12 remaine &lose?
1>3< "raqi Oil "nustry: IAS rou1: /ar&) 2>11? 1>4> G33m !ontra&t A=are for Basra Oil Terminal: Ira' Business *e&s: 2; ,eptember 2>1>? 1>41 ill "raq be t)e ne't oil superpo=erH? Petroleum )conomist: 12 *e&ember 2>12? 1>42 Ain Oil Terminal Dital To "raqs %&onomy: *P!: 2> une 2>>< 1>43 "raqMs Oil %'port Outlets: (iddle )ast )conomic Survey: 3> 0ovember 2>>44 Tas# $or&es Bolster O"$: O%$ /aritime ,e&urity: "his1er"ave: 16 $ebruary 2>>6? 1>45 T)e ir#u# J Banias (ipeline: Pi1elines International, /ar&) 2>11? 1>46 ,yria Oil .as (rofile: A Barrel 4ull, retrieve 6 anuary 2>11?
1;>
Capacity T)e ir#u#-Banias pipeline )a a &apa&ity of 3>>:>>> barrels per ay bp7 prior to 2>>3? Co=ever its oriinal &apa&ity =)en built in t)e 1<5>s =as 1?4 million bp? 1>4
6istory "n 1<5> t)e "raq (etroleum !ompany "(!7 &ontra&te Be&)tel to &onstru&t t)e 3>-32 in&) pipeline: =)i&) =as lai by Britis): Ameri&an: ,yrian an "raqi =or#ers? !onstru&tion =as &omplete in 1<52? T)e pipeline =as amae by t)e ,yrian army in response to t)e Anlo-$ren&) seiEure of t)e ,ueE !anal Eone in 1<56: but =as later repaire? "n 1<2 "raq nationalise t)e "(!: promptin ,yria to nationalise t)e "(!s assets in ,yria: in&luin t)e ,yrian se&tion of t)e ir#u#-Banias pipeline?1>45 T)e pipeline =as &lose for mu&) of t)e 1<>s an 1<;>s: but in t)e 1<<>s it =as reopene so t)at "raq &oul bypass t)e +0 oil embaro? At t)e time: reports put "raqs e'ports t)rou) t)e line at about 15>:>>>-2>>:>>> bp? 1>4 But t)e pipeline =as bombe by +, for&es urin t)e invasion t)at remove ,aam Cussein in 2>>3: stoppin t)e flo= of oil? "n 2>> it =as reporte t)at ,yria an "raq =ere is&ussin plans to revive t)e pipeline: )o=ever onoin se&urity issues stalle t)e eal a&&orin to t)en Oil /inister ,)a)ristani?1>4; Reports sueste t)at Russian firm ,troytransaE )a se&ure a &ontra&t for repairs: )o=ever !)ristop)er Blan&)ar reporte t)at in 2>> t)e ,yrian overnment =as see#in alternative forein firms? "n April 2>>< ,yria an "raq aain announ&e t)at t)e t=o sies )a rea&)e an areement to repair t)e line: )o=ever t)e eal =as not follo=e t)rou)? 1>4< "n April 2>11: ,troytransaE reporte t)at "raq =as finalisin t)e terms of enaement for a &ontra&t to &onstru&t t=o &rue e'port pipelines an a as pipeline t)rou) ,yria to t)e Banias port: to be offere to investors? !apa&ity for t)e t=o pipelines =as e'pe&te to rea&) 2?5 million bp? T)e first pipeline =oul transport )eavy &rue from t)e nort)ern Baiji area: potentially in&luin oil from /ajnoon: Calfaya: Bara: A)ab an t)e %ast Ba)a fiels: as =ell as 0ajma) an Fayara? T)e se&on =oul follo= t)e route of t)e e'istin amae pipeline: =it) a &apa&ity of 1?25 million bp? As of late 2>11 t)e proje&t )a not been &onfirme?1>5>
Iraq Pipeline throu5h %audi Arabia IP%A! T)e "raq (ipeline t)rou ) ,aui Arabia #no=n as "(,A7 travels t)rou) ,aui Arabia 1>4 0O! lets &ontra&t for ir#u#-Banias oil line repair: Pi1elines International, 4 uly 2>>;? 1>4; "raq says oil flo=s t)rou) ,yria epen on se&urity: !euters: 2> Auust 2>>? 1>4< Blan&)ar: !)ristop)er "raq Reional (erspe&tives an +, (oli&y: Congressional !esearch Service: 6 O&tober 2>>5> "raq $inalises Tener Terms for ,yria %'port (ipelines: Stroytransga#, 21 April 2>11?
1;1
to t)e Re ,ea (ort of /uajiE: just nort) of 9anbu? "(,A )as suffere several &losu res as a result of =ars an ot)er politi&al events an )as been out of operation sin&e t)e .ulf &risis?1>51 T)e terminal at /uMajiE )as 1> million barrels of storae an loain fa&ilities for )anlin tan#ers up to 4>>:>>> tons?1>52
Capacity "(,A )as a esin &apa&ity of 1?65 million barrels per ay bp7? 1>52
6istory "(,A =as lai in t)e 1<;>s in orer to iversify e'port routes after oil tan#ers =ere atta&#e in t)e .ulf by bot) sies urin t)e "ran-"raq =ar? Co=ever it )as not &arrie "raqi &rue sin&e ,aam Cussein invae u=ait in 1<<>: &ausin relations bet=een t)e t=o &ountries to eteriorate? ,aui Arabia &onfis&ate t)e pipeline in 2>>1 as &ompensation for ebts o=e by Ba)a an from t)en until 2>12 )a only use t)e line to transport as to po=er plants in t)e =est of t)e &ountry?1>53 A&&orin to former "raqi Oil /inister "ssam al-!)alabi: no attempts =ere mae to re&over t)e pipeline system follo=in t)e 2>>3 invasion: an politi&al relations bet=een 1>54
"raq an ,aui Arabia remaine sour? "n ,eptember 2>>3: unname offi&ial sour&es state t)at ,aui Arabia )a e&ie to reopen t)e "(,A pipeline to allo= "raqi oil to be e'porte from t)e &ountrys sout)ern oilfiels to 9anbu ?1>55 Co=ever by O&tober of t)e same year: a ,aui Aram&o offi&ial state t)at "raqis Iont #no= =)at t)ey are tal#in about??? t)e pipeline is not in a usable form be&ause of its lon-term an suen &losure?I1>56 "n *e&ember 2>11: after "ranian aut)orities t)reatene to &lose t)e (ersian .ulf to international oil trae: &onsieration of alternative e'port routes to t)e ,trait of CormuE le to rene=e is&ussion about t)e various oil pipelines t)at run a&ross ,aui Arabia? T)e "(,A pipeline an t)e Trans-Arabian (ipeline also #no=n as Tapline7 &oul &arry t)e equivalent of up to 2 million bp to ports on t)e Re ,ea an /eiterranean &oasts?1>5 0onet)eless "raqs se&urity &on&erns: =)i&) in&lue prote&tion of t)reatene oil infrastru&ture an reserves: =oul also nee to be &onsiere before any e&ision to reopen t)e "(,A pipeline &oul be sueste as a viable option: a&&or1>51 %nery (rofile of "raq: )ncyclo1edia of )arth: 3 uly 2>>? 1>52 Ba#er "nstitute paper suests pipeline alternative to CormuE oil route: Pi1eline and as Journal: /ay 2>12? 1>53 ,aui Arabia reopens oil pipeline =it) "raq to &ounter "ran CormuE t)reat: Al Arabiya: 2< une 2>12? 1>54 "raqMs Oil %'port Outlets: (iddle )ast )conomic Survey : 3> 0ovember 2>>55 ,aui to reopen "raq pipeline: A() Info: 11 ,eptember 2>>3? 1>56 "raq-,aui oil pipelin is unusable: as And 0il: 2> O&tober 2>>3? 1>5 !ir&umventin t)e ,trait of CormuE Bottlene&#: Atlantic Sentinel: 2> *e&ember 2>11?
1;2
in to reports by !euters?1>5;
9aq 9aq.8hurmala Oil Pipeline T)e 5-#ilometre Taq-Taq-)urmala pipeline: uner &onstru&tion as of late 2>12: =ill lin# t)e Taq Taq oil fiel to t)e )urmala ome: t)e nort)ernmost part of t)e iant ir#u# fiel an t)e entry point for t)e ir#u#-!ey)an pipeline? T)e pipeline =as bein built by t)e %rbil-base AR .roup: )as a &apa&ity of 15>:>>> barrels per ay bp7 an =as ue for &ompletion in late 2>12? 1>5< "n t)e meantime &rue for e'port =as be in transporte by tru&#: eit)er 135 #ilometres #m7 to )urmala or 255#m to $is)#abur on t)e Tur#is) borer? T)e proje&t &onstitutes t)e first part of a t=o-p)ase proje&t envisae to lin# prou&in fiels in uristan to $is)#abur? T)e &omplete pipeline =ill )ave a &apa&ity of 1 million bp? T)e se&on p)ase =as e'pe&te to be &omplete by t)e en of 2>13: a&&orin to .enel %nery?1>6>
8ir=u=.Ceyhan Oil Pipeline Transportin oil from fiels near ir#u# in "raqs nort) to t)e Tur#is) /eiterranean port of !ey)an: t)e ir#u#-!ey)an pipeline spans <41 #ilometres? "t &omprises t=o parallel pipelines: t)e first of =)i&) =as &ommissione in 1< an t)e se&on in 1<;?1>61 "n 2>12 t)e pipeline =as &arryin a quarter of "raqs &rue e'ports 1>62 an as of 2>12 =as t)e only e'port route for "raqs nort)ern oil prou&tion? 1>63 T)e pipeline is operate by t)e "raqi Oil /inistrys 0ort) Oil !ompany 0O!7? 1>64 ,in&e it rests ire&tly =it)in t)e sp)ere of influen&e of t)e uristan Reional .overnment R.7 some uris) observers: su&) as t)e ne=sletter +urdish As1ect: )ave arue t)at t)e pipeline s)oul be automati&ally in&orporate into R. eorap)y pursuant to Arti&le 14> of "raqs 2>>5 &onstitution?1>65 As of *e&ember 2>11: t)e Tur#is)-ba&#e &ompany .enel %nery )a plans to buil a +, G4>> million oil pipeline to lin# t)e sout)ern Taq Taq fiel =it) t)e ir#u#-!ey)an pipeline? .enel )ope to start &onstru&tion on t)e ne= 4>>:>>> bp pipeline in t)e sprin of 2>12?1>66 1>5; $%AT+R%-"raq oil se&urity teste as +?,? for&es =it)ra=: !euters: 16 *e&ember 2>11? 1>5< uristan Taq Taq oil e'ports rise a)ea of ,ept ealine: !euters: 6 ,eptember 2>12? 1>6> Taq Taq (,!: enel )nergy: retrieve *e&ember 2>12? 1>61 (ipeline proje&ts in t)e /ile %ast: Pi1elines International /ar&) 2>1>? 1>62 $ire )alts ir#u#-!ey)an pipeline: U1stream 0nline: 2 Auust 2>12? 1>63 ,yriaMs transit future all pipelines lea to *amas&usH: 01en0il: 2; /ar&) 2>12? 1>64 $alse Reports of ,uspension of Oil %'ports from uristan: Ira' Business *e&s 12 ,eptember 2>11? 1>65 ir#u#-!ey)an pipeline belons to uristan: +urdish As1ect: 22 ,eptember 2>1>? 1>66 $ormer B( &)ief e'plores t)e final oil frontier: 4inancial /imes: *e&ember 2>11?
1;3
Capacity T)e pipeline )as a &apa&ity of 1?6 million barrels per ay bp7 but in 2>11 =as typi&ally pumpin aroun 5>>:>>> bp?1>6 T)e t=o &omponent pipelines )ave iameters of 46 in&)es an 4> in&)es respe&tively: an t)e proje&t in&lues four pump stations an t)ree storae tan# farms on t)e "raqi sie: =it) a meterin station at t)e Tur#is) borer?1>6;
6istory T)e pipeline =as mae operational in t)e 1<;>s in part to ma#e possible t)e e'port of &rue oil =)ile avoiin t)e ris# of passin t)rou) t)e (ersian .ulf urin t)e "ran-"raq =ar from 1<;> to 1<;;? "t )as been uner atta&# an subje&t to prolone &losures for mu&) of its e'isten&e: &ontributin to its belo=-&apa&ity operation? 1>6< T)e pipeline =as a primary taret of insurent atta&#s an sabotae in t)e years follo=in t)e +,-le invasion of "raq:1>> an =as offline more t)an online bet=een 2>>3 an 2>>?1>1 ,in&e t)en it )as been s)ut o=n on several o&&asions: sometimes ue to atta&#s for instan&e: a bomb s)ut o=n operations for several ays in /ar&) 2>117 1>6 an at ot)er times ue to ol: eterioratin infrastru&ture as in ,eptember 2>11: =)en e'ports =ere )alte be&ause of a lea#7?1>1 "n ,eptember 2>1> "raq an Tur#ey sine an areement to e'ten t)eir joint operation of t)e pipeline for 15 years an to uprae its &apa&ity by about 1 million bp: t)ou) t)e "raqi Oil /inistry provie no timetable for t)e upraes &ompletion? T)e e'tension also in&lue amenments t)at raise t)e transit fees payable to Tur#ey as =ell as an offi&ial uarantee by t)e Tur#is) overnment ivin it t)e aut)ority to ismiss orers by Tur#is) &ourts to seiEe "raqi oil?1>2
%trate5ic Pipeline "raqs ,tratei& (ipeline =as built in 1<5: &omprisin t=o parallel >>:>>> barrels per ay bp7 pipelines &apable of transportin &rue from ir#u# sout) to t)e Arabian (eninsula?1>3 T)e obje&tive of t)is reversible pipeline =as to ive t)e option of pumpin ir#u# &rue sout)=ars for e'port via t)e .ulf or of pumpin &rue from t)e sout)ern fiels nort)=ars: for e'port via Tur#ey or to refineries aroun Ba)a? 1>4 1>6 +(*AT% 1-Blast s)ut o=n "raq ir#u#-!ey)an pipeline-sour&es: !euters < /ar&) 2>11? 1>6; T)e /ain "nstallations: *orth 0il Com1any: retrieve 14 *e&ember 2>11? 1>6< Terror t)reatenin %uropean enery: Hurriyet %aily *e&s: 1 0ovember 2>11? 1>> "raq (ipeline at&): Institute for the Analysis of lobal Security: 2 /ar&) 2>>;? 1>1 "raq ,)uts ir#u#-!ey)an !rue %'port (ipeline $ollo=in ea#: %o&nstream /oday: 2< ,eptember 2>11? 1>2 "raq: Tur#ey sin rene=e oil pipeline a&&or: !euters, 12 ,eptember 2>1>? 1>3 T)e ir#u# J Banias (ipeline Pi1elines International: /ar&) 2>11? 1>4 "raq %nery Outloo# I)A: 12 0ovember 2>12?
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or# =as )alte on t)e se&on line urin t)e .ulf ar of 1<<>-<1? 1>5 *ue to amae to parts of t)e pipeline: as of 2>12 t)e line =as only use to transport oil for omesti& purposes: mainly from t)e ,out) Oil !ompany to t)e refinery at *aura?1>4
Capacity T)e ,tratei& (ipeline is esine to &arry ;5>:>>> bp of &rue: but t)e "%A estimates operatin &apa&ity to be mu&) lo=er? A&tual flo=s in une 2>12 =ere belo= 5>:>>> bp?1>4
Islamic 0as Pipeline "n summer 2>11 "ran: "raq an ,yria sine a memoranum on layin a 5:>>>-#ilometre pipeline:1>6 to be name t)e "slami& .as (ipeline? T)e propo se pipeline =oul transport as resour&es from "rans ,out) (ars fiel an =oul e'ten t)rou) "raq: ,yria: ebanon an to %urope uner t)e /eiterranean sea?1> "ran sueste in 2>11 t)at t)e "slami& (ipeline &oul serve as an alternative to t)e %+-ba&#e 0abu&&o pipeline set to supply %urope =it) as resour&es via Tur#ey an Austria? T)e estimate &ost of t)e proje&t is +, G1> billion an is e'pe&te to be in operation by 2>16?1> Co=ever onstantin ,imonov of t)eris#s 0ational %nery ,afety &ommente t)at Ieveryone is a=are of politi&al asso&iate =it) "ranI$ounation an t)at Imoreover: t)e &onstru&tion =ill never bein be&ause "ran an ,yria )ave no money an forein finan&ial resour&es are unavailable to t)em?K1>
Capacity A&&orin to t)e *eputy Oil /inister ava O=ji: t)e propose pipeline =oul be able to pump 3?< billion &ubi& feet b&f7: of natural as per ay? Ba)a state it =ants up to 53> million &ubi& feet m&f7 per ay for its o=n nees: ,yria =oul nee up to >6 m&f an ebanon up to 24 m&f? A&&orin to +(": t)is =oul leave 2?4 b&f for possible e'port?1>;
+rbil.Dohu= 5as pipeline T)e %rbil-*o)u# pipeline is a proje&t uner &onstru&tion: as of mi-2>12: by t)e AR .roup: built to transport as to a po=er plant in *o)u#: near t)e Tur#is) borer? Co=1>5 "raq Reopens ,tratei& (ipeline Ira' Business *e&s: 6 *e&ember 2>12? 1>6 ,even "nvestors Reay to $un "slami& .as (ipeline ulf 0il and as: ; une 2>11? 1> "slami& (ipeline to &)allene 0abu&&o ?oice of !ussia: 26 uly 2>11? 1>; "slami& pipeline see#s %uro as mar#ets UPI: 25 uly 2>11?
1;5
ever a&&orin to Iraq Oil Report: t)e pipeline also )as serious stratei& impli&ations: in t)at t)e *o)u# plant nees only aroun 1>> million &ubi& feet m&f7 of as per ay: =)ile t)e pipeline )as a &apa&ity of 4>> m&f: leavin spa&e for potential e'ports? A&&orin to t)e report: t)is =oul suest t)at t)e R. mi)t be loo#in to buil a pipeline e'tenin beyon *o)u# an nort) into Tur#ey?1><
Other infrastructure projects
%outh 0as 3tilisation Pro;ect "n ,eptember 2>>; international oil &ompany ,)ell sine a Ceas of Areement COA7 =it) t)e "raqi /inistry of Oil to &apture some of t)e surplus as prou&e urin oil e'tra&tion at Basra in t)e sout): for a proje&t =)i&) later &ame to be #no=n as t)e ,out) .as +tilisation (roje&t? T)e surplus as =as previously burnt off in a pro&ess #no=n as flarin: =)i&) is estimate to &ost +, G5 million a ay in lost fuel? ,)ell !)ief %'e&utive (eter Doser es&ribe t)e eal as )eralin La ne= &)apter in t)e as inustry in "raqK?1>;> T)e joint venture &ompany establis)e to manae t)e proje&t =as t)e Basra .as !ompany B.!7: a &ollaboration bet=een t)e state-run ,out) .as !ompany ,.!7: ,)ell an /itsubis)i !orporation? T)e o&uments finalisin t)e &reation of t)e B.! 2>11: =ere an approve by t)e enery &ommittee at t)e !oun&il of /inisters in ,eptember ratifie by t)e !abinet on t)e 15 0ovember 2>11? +ner t)e areemen t: as =as to be supplie from t)e sout)ern oil fiels of Rumaila: @ubair an est Furna-1 an t)e lifetime investment =as estimate at more t)an G1 billion? 1>;1 T)e ,.! )ols a 51 per&ent sta#e: ,)ell 44 per&ent an /istubis)i 5 per&ent? 1>;2 Co=ever =)en rea&tin to lea#e iplomati& &ables in 2>11: Ira' 0il !e1ort suests t)at in &ontrast to t)e transparent an &ompetitive biin rouns of 2>>< an 2>1> for oil an as &ontra&ts: t)e ,)ell as eal =as bro#ere be)in &lose oors an may )ave put ,)ells preroatives a)ea of "raqs interests?1>;3 Operations are to be overseen by a manaement &ommittee &onsistin of five representatives from t)e ministry: four from ,)ell an one from /itsubis)i? As majority s)are)oler: t)e ,.! must approve any &ommittee e&ision?1>;4
1>< ,tratei& R. pipelines near &ompletion Ira' 0il !e1ort: 2< Auust 2>12? 1>;> ,)ell sins _11bn eal to fuel "raqs po=er stations =it) as: uardian: 2 0ovember 2>11 1>;1 "raqMs !)allenes On "ts (at) To=ar A orl !lass .as "nustry: (iddle )ast )conomic Survey: 21 0ovember 2>11? 1>;2 ,)ell ets its as eal: Ira' 0il !e1ort: 2 0ovember 2>11? 1>;3 T)e se&ret )istory of t)e ,)ell as eal Ira' 0il !e1ort: 21 anuary 2>1>? 1>;4 ,)ell ets its as eal: Ira' 0il !e1ort: 2 0ovember 2>11?
1;6
Pro;ect 5oals Oil /inister Abul arim al-uaibi )as )i)li)te t)e important role t)e B.! =as intene to play in "raqs stratey to boost t)e &ountrys I&)roni&ally unerperformin ele&tri&ity se&torI? A furt)er oal of t)e proje&t is to iminis) t)e environmental an publi& )ealt) impa&t of as flarin?1>;3 "n t)e s)ort term: t)e obje&tive is to re)abilitate 3> e'istin fa&ilities an t=o major pro&essin plants at 0ort) Rumaila an )or al @ubair previously operate by t)e ,out) !ompany? Butpossibility as oil prou&tion in&reases: investment +, G13.as billion: =it) t)e of an aitional G4 t)ere billion=ill for be an total 0. e'port plantof if t)ere =ere to be suffi&ient surplus as after omesti& nees )a been met? T)e obje&tive for t)rou)put is 2> billion &ubi& metres b&m7 of as per year?1>;5
Obstacles *espite t)e eal finally bein brou)t to a &on&lusion in 2>11: t)e proje&t &ontinue to fa&e opposition from #ey lo&al sta#e)olers? T)e Basra provin&ial &oun&il )as t)reatene to file a la=suit aainst t)e eal: &laimin t)at lo&al offi&ials =ere not involve in t)e neotiations an i not )ave t)e opportunity to se&ure uarantees of so&ial investment? T)is is a &laim enie by ,)ell manaement: )o=ever Ira' 0il !e1ort suests t)at t)e valiity of t)e !oun&ils obje&tions =as a&#no=lee by one of (/ 0ouri al-/ali#is top oil avisors?1>;3 T)e question of )o= to alin t)e interests of t)e various parties involve present a furt)er &)allene? As of *e&ember 2>11: t)e issue of t)e relations)ip bet=een t)e B!. an t)e operators of t)e fiels in question in&luin B(: %''on/obil an %ni7 still neee to be resolve? T)ere =as some isareement on =)o )as first ri)ts to t)e asso&iate as prou&e at t)e fiels ?1>;3 Analysis by t)e "nternational %nery Aen&y "%A7 e'pans on t)is &)allene: aruin t)at as t)e te&)ni&al servi&e &ontra&ts sine for fiels supplyin as to t)e B.! o not in&lue a remuneration fee for as prou&tion: t)e &ontra&tors )ave little &ommer&ial in&entive to ma#e as reaily available? Co=ever t)ey o )ave an in&entive to use t)e proje&t to promote a stron publi& imae on t)e question of flarin?1>;5 "n aition t)e proje&t presents &omple' e&onomi& problems? o= omesti& as pri&es fi'e at just over G1 per million Britis) t)ermal units: /Btu7 o not offer suffi&ient value to unerpin t)e investment require: a&&orin to t)e "%A: meanin t)at t)e B.! must rely on returns earne from t)e )i)er value of natural as liquis e'tra&te from t)e ra= as &onensate an (.7: =)i&) &omman a )i)er pri&e t)an t)e omesti& as pri&e?1>;5
1>;5 "raq %nery Outloo#: International )nergy Agency: 2>12?
1;
+nvironmental Impacts of Iraq4s Oil and 0as Industry 0as flarin5 As of 2>11: t)e only &ountries to flare more natural as t)an "raq =ere Russia: "ran 1>;6
an,ee 0ieria? also *atural as 4laring in Ira'
-ater and marshlands T)e pro&ess of oil e'tra&tion requires vast quantities of =ater: often more t)an t)e volume of oil prou&e? "n t)e past: oil &ompanies in t)e sout) of "raq )ave primarily relie on t)e Tiris river for =ater supply: )o=ever "raqi overnment offi&ials )ave prei&te t)at sout)ern "raq =ill fa&e a major =ater &risis in 15 to 2> years if t)ins &ontinue as t)ey are?1>; "n parti&ular tensions bet=een Tur#ey an "raq )ave arisen over t)e impa&t of Tur#eys +, G32 billion 1>;; ,out)east Anatolia (roje&t .A(7 on "raqs =ater resour&es? .A( is an infrastru&ture proje&t laun&)e in 1<5 an involvin t)e &onstru&tion of 22 ams a&ross t)e %up)rates an Tiris basins? Tur#ey in t)e past )as resiste rea&)in an areement =it) bot) "raq an ,yria: fello= o=ners of t)e =ater from t)ese rivers: =it) former presient Turut OEal sayin t)at I=e onMt tell Arabs =)at to o =it) t)eir oil: so =e onMt a&&ept any suesti on from t)em about =)at to o =it) our =a ter?I1>;< A&&orin to Den#ata Demuri of pressure roup One ater: for t)e nei)bours of Tur#ey an "raq t)e immeiate &on&ern is t)at ifferen&es over =ater &oul isrupt t)e flo= of oil?1>;; T)e 0.O !oorination !ommittee for "raq also reports &on&erns aroun t)e ultimate estination of t)e lare quantities of =ater use after oil e'tra&tion? T)is =ater is often &ontaminate urin e'tra&tion =it) to'i& byprou&ts an release into t)e roun: from =)ere a&is: &ar&inoen s an ot)er to'ins &an enter t)e e&osystem an pose major )ealt) ris#s su&) as &an&er? T)ose =or#in in t)e oil inustry an e'pose to t)ese to'ins are at parti&ular ris#?1><> A 2>> Report by t)e +nite 0ations %nviron1><1 sites???? are unoubtely a major ment +0%(7an states t)at oil=aste? inustry sour&e(roramme of &ontamination )aEarous
1>;6 ,)ell sins _11bn eal to fuel "raqs po=er stations =it) as: uardian: 2 0ovember 2>11? 1>; "raq may suffer &lean =ater &risis in 15-2> years: !euters: 21 ,eptember 2>11? 1>;; /ile %ast- Tur#ey an "raq: (artners in ,o /any ays: 0ne "ater: retrieve 3 *e&ember 2>12? 1>;< oneren: oost: *ams an (oliti&s in Tur#ey +tiliEin ater: *evelopin !onfli&t: 2>1>? 1><> "raqis an 0.Os !onsier $uture %naement =it) "nternational Oil !ompanies: *0 Coordination Committee for Ira': retrieve *e&ember 2>11? 1><1 +0%( in "raq (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion: U*)P: *e&ember
1;;
T)e same +0%( report aresses t)e alluvial plains in t)e sout)-east &orner of t)e &ountry: =)i&) &onstitute appro'imately 3> per&ent of "raqi territory an are forme by t)e &ombine eltas of t)e Tiris an %up)rates rivers? T)e reion beins nort) of Ba)a an e'tens to t)e (ersian .ulf?1><2 T)is reion: #no=n as t)e /esopotamian mars)lans: is )ome to lo&al tribes =)o live above some of t)e ri&)est oil reserves in "raq? *urin ,aam Cusseins rule over t)e &ountry: t)e mars)es =ere amme an raine =)en Cussein a&&use t)e /ars) Arabs of treason urin t)e 1<;>-;; =ar =it) "ran?1><3 T)e e&osystem forms part of t)e Tiris an %up)rates river basin: =)i&) fees "raq: Tur#ey: ,yria an "ran? Co=ever t)e )eart of t)e =etlans lies in sout)ern 1><4
"raq:)ite alon(aper: t)e borer =it) "ran anmars)lans near bi &ities li#e Basra? A&&orin to"raq a 2>11 +0 t)e future of t)e epens on )o= su&&essfully is able to stri#e a balan&e bet=een national evelopment: in&luin t)e evelopment of t)e oil inustry infrastru&ture in t)e /ars)lans area: an environmental &onservation? T)e &entral overnment initiate plannin for t)e lon term evelopment of t)e mars)lans bet=een 2>>5 an 2>>6: )o=ever t)e influen&e of t)e oil inustry is &ite by t)e +nite 0ations "nterate ater Tas# $or&e for "raq as bein one of t)e &)allenes in evelopin a sinle stratei& plan for t)e area?1><5
Oil transportation and spills T)e transportation of oil may also entail environmental ris#s: =it) lea#s or major oil spills enanerin parts of t)e .ulf: part of a fraile e&osystem? "n t)e sout) =)ere t)e =ater table is just a fe= feet belo= t)e roun: oil from amae pipelines also seeps 1><6
into =ater supplies use for ari&ulture an rin#in =ater? "raqs oil infrastru&ture )as also &ome uner atta&# frequently sin&e 2>>3? T)e "nstitute for t)e Analysis of .lobal ,e&urity t)in#-tan# &ounts at least 46< sinifi&ant atta&#s on "raqi oil infrastru&ture bet=een =)en e'ports resume in une 2>>3 an /ar&) 2>>;? 1>< A&&orin to t)e BB!: t)e vast majority of atta&#s on t)e oil inustry =ere blame on insurents bent on estabilisin "raq?1><6 Asie from sabotae: some ruptures )ave been lin#e to maintenan&e issues alon pipelines? "n parti&ular: in late O&tober 2>11 a pipeline =)i&) runs sout) from est Furna past t)e Rumaila oil fiel to t)e $ao port suffere an oil spill: follo=in a rupture in a pipe s&)eule to be repla&e by !)inese !0(!? T)e spill =as terme a isaster by *eputy %nvironment /inister amal atif: as it enanere Basras only sour&e of fres) =ater an &ontaminate a 22-#ilometre stret&) of t)e Baas &)annel: =)i&) fees t)e only =ater purifi&ation fa&ility servin t)e &ity of Basra? A&&orin to Ira' 0il !e1ort: t)e in&ient =as seen as an a&&ient rat)er t)an an a&t of sabotae an
an offi&ial from t)e Oil (oli&e amitte t)at poor maintenan&e =as to blame for t)e 2>>? 1><2 +0%( in "raq (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion: U*)P: *e&ember 2>>? 1><3 "raqi Tribal *isputes (ose 0e= !)allene to Oil $irms: Ira' )nergy *e&s: 31 /ay 2>11? 1><4 %en in t)e ine of $ire: /ierra America: retrieve *e&ember 2>11? 1><5 /anain !)ane in t)e /ars)lans"raqMs !riti&al !)allene: United *ations: 2>11? 1><6 Oil atta&#s taret "raq re&overy: BBC *e&s: 16 une 2>>4? 1>< "raq (ipeline at&) : IAS: retrieve ; *e&ember 2>11?
1;<
pipeline rupture in 0ort) Rumalia?1><;
Iraqi environmental re5ulation $ollo=in t)e 2>>3 invasion of "raq an subsequent up)eaval: t)e operations of environmental aut)orities in "raq =ere severely &urtaile: =it) many laboratories in Ba)a loote follo=in t)e &onfli&t? A&&orin to a +0%( Report: t)e nee to rebuil "raqs environmental monitorin &apa&ity =as urent?1><<
.//0 onstitution T)e 2>>5 !onstitution of t)e Republi& of "raq emans s)are responsibility for environmental reulation bet=een t)e feeral aut)orities an t)e prou&in aministr ative reions in manaement of oil an as? Co=ever: t)e feeral overnment remains t)e e&ision ma#er on &ertain matters: in&luin eneratin poli&ies relatin to =ater sour&es from outsie "raq?11>>
$nvironmental laws of 1223 and .//4 a= 0o? 3 of 1<< &overe soil: air quality an =ater resour&es an form e t)e frame =or# for t)e prote&tion of t)e environment in "raq until bein subsume into t)e 2>>; an 2>>< %nvironmental la=s? T)e oal of t)e 1<< a= is to Iprote&t t)e environment an to ma#e it better in&luin t)e territorial =aters: from pollution an to e'tenuate its effe&ts on )ealt): environment an natural resour&es?K T)e subsequent a= 0o? 3 of 2>>; strent)ens t)e 1<< %nvironmental a=: an &reate a formal /inistry of %nvironment? T)is /inistry e'e&utes formal ministerial instru&tions an orers: &reates environ mental poli&y an initiates &omplian&e an eterren&e me&)anisms?11>>
$nvironmental law under bid rounds T)e te&)ni&al servi&e &ontra&ts T,!s7 sine in t)e first bi rouns in 2>>< require &ontra&tors an operators to &onu&t petroleum operations =it) ue rear to t)e prote&tion of t)e environment an to t)e &onservation of natural resour&es: aoptin best international petroleum inustry pra&ti&es? Co=ever: t)e efinition of best pra&ti&es is some=)at ambiuo us? A&&orin to Ira' 0il !e1ort : an international oil &ompany "O!7 may =ell alreay apply t)e )i)est
stanars: as a result of its o=n &orporate poli&ies or t)ose of its finan&iers: )o=ever t)e T,!s =oul seeminly allo= lo=er stanars enerally a&&epte as oo pra&ti&e?11>> 1><; Oil pipeline lea# t)reatenin Basra =ater supply: Ira' 0il !e1ort: 3 0ovember 2>11? 1><< +0%( in "raq (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion: U*)P: *e&ember 2>>? 11>> Analysis "raqi leal reime prote&ts environment: Ira' 0il !e1ort: 31 anuary 2>11?
1<>
.//2 $nvironmental "aw T)e 2>>< %nvironmental a= e'pane t)e jurisi&tion an enfor&ement po=ers of t)e /inistry of %nvironment an introu&e t)e &on&ept of environmental impa&t assessments %"As7: =)i&) s)oul be submitte to t)e /inistry an approve before =or# may bein? T)e assessment s)oul in&lue t)e follo=in elements positive an neative impa&ts of t)e proje&t on t)e environment? means to prevent an aress t)e &auses of pollution in orer to &omply =it) reulations? &ontinen&ies for pollution emeren&ies an pre&autions? possible alternative to t)e use of te&)no loy less )armful to t)e environment? provisions to reu&e =aste? T)e 2>>< la= also establis)es penalties for non-&omplian&e an environmental pollution: su&) as &losure of operations for efine perios an fines of up to +, G;5> a mont) until t)e non-&ompliant fa&tor is remove? "f not remeie: t)e aut)orities &an resort to imprisonment an furt)er fines? 11>1
International treaty obligations Asie from internal reulation:in&luinN "raq )as also up to a number of t)e environmental &onventions an areements: t)e sine Basel !onvention 2>><7N !onvention on *esertifi&ation 2>>7N t)e !limate !)ane !onvention an yoto (roto&ol 2>>;7N t)e +0%,!O !onvention 2>>;7N an !onvention for Bioloi&al *iversity 2>>;7? 11>1 Co=ever a&&orin to &orporate attorney T)omas *onovan: "raq )as traitionally lae be)in international stanars an )as only re&ently sine up to many &onventions: t)e provisions of =)i&) )a not yet been implemente into "raqi la= as of 2>11?11>1
11>1 Analysis "raqi leal reime prote&ts environment: Ira' 0il !e1ort: 31 anuary 2>11?
1<1
Fields awarded y central go!ernment
Ahdab Oil Field Oil Reserves
1 billion barrels estimate7
Oil(rou&tion
14>:>>>bp2>127
%stimate.asin(la&e *is&overe $irst(rou&e
5>bs&f
11>2
11>2
11>3
1<<11>2 2>11
11>2
o&ation
asit(rovin&e:%ast?
(rin&ipal (artners
!0(! 5V711>4
,e&onary (artners
0ort) Oil !ompany 25V711>2
T)e A)ab fiel lies in a 3>3 square #ilometre blo&# in "raqs asit provin&e: 1;> #m sout)-east of Ba)a? T)e fiel =as oriinally e'plore usin 1<>s vintae 2* seismi& ata?11>3 "raqi offi&ials )ave estimate t)at t)e fiel )ols appro'imately 1 billion barrels of oil? T)e fiel also )ols 5> billion stanar &ubi& feet s&f7 of asso&iate as reserves: )o=ever as of 2>11 no plans )a been announ&e for t)eir &ommer&ial evelopment: in =)i&) &ase t)e as =oul li#ely be flare or reinje&te?11>2
Contracts ne5otiated A eal for e'ploitation of t)e al-A)ab fiel =as first sine in 1<<6 bet=een t)e !0(! an ,aam Cusseins overnment? Co=ever: t)e eal =as postpone after t)e +0 impose san&tions an elaye furt)er by t)e +,-le invasion in 2>>3? 11>2 Co=ever in 0ovember 2>>; !)inese !0(! se&ure ri)ts to t)e A)ab fiel uner a te&)ni&al servi&es &ontra&t sine =it) t)e "raqi overnment? +ner t)e terms of t)e &ontra&t t)e &ompany )as evelopment ri)ts for 23 years an is to invest G3 billion? Analysts tol t)e New York Times in 2>11 t)at t)e A)ab operation is !0(!s 11>2 !)ina Opens Oil $iel in "raq: *e& .ork /imes: 2; une 2>11 11>3 "raqs A)ab oil fiel evelopment limits &ontra&tor profitability: 0il and as Journal: ; anuary 2>11 11>4 !0(! starts prou&tion Al-A)ab oil fiel in "raq: Penn )nergy: 2< une 2>11
1<2
larest in t)e /ile %ast? A !)inese oil e'e&utive also &laime in 2>>< t)at t)e &ompany =oul ma#e a profit of less t)an 1 per&ent but t)at t)e &ontra&t =as a =ay to et a foot in t)e oor of t)e "raqi inustry?11>5 A&&orin to a 2>>; +, iplomati& &able: !0(! estimates t)at output &oul rea&) as )i) as 11>:>>> barrels per ay bp7 an t)at !0(! =ill be pai somet)in li#e G6 per barrel uner t)e terms of t)e eal? But !)inese Trae !ounselor @)ue 9ues)en &ommente t)at t)e !)inese sie =as &on&erne about "raqi se&urity uarantees: =)i&) )a to be resolve before =or# &oul bein at t)e site? 11>6 T)e eal over oilfiel )as ra=n &riti&ism from resients an offi&ials asit to (rovin&e? ,omet)e people emane t)at asit be rante a royalty of G1 perinbarrel improve a&&ess to &lean =ater: )ealt) servi&es: s&)ools: roas an ot)er publi& nees in t)e provin&e: =)i&) is amon "raqMs poorest? Co=ever: t)e "raqi overnment reje&te t)e emans? T)e resients &omplaine in 2>>< t)at !)inese evelopment of t)e fiel =oul )ol no benefits for t)em: ot)er t)an proviin lo&al employment for less t)an G6>>mont)? $ears =ere also raise over se&urity for =or#ers an fears of #inappin?11>5
Production and +#port "n 0ovember 2>12 it =as reporte t)at t)e fiel )a a total of 1> operatin =ells an =as prou&in at a level of 14>:>>> bp? 11>5
A==as 0as Field %stimate.asin(la&e
5?6t&f
11>
*is&overe
1<<211>;
o&ation
Al-Anbar overnorate:est?
(rin&ipal (artners
oas 5V711>;
,e&onary (artners
0ort) Oil !ompany 25V711>;
T)e A##as as fiel also #no=n as ,ala) Al *ine7 is situate in t)e =estern eserts of "raq: in t)e al-Anbar provin&e? "t lies 3> #m sout) of Al Faim &ity on t)e ,yrian borer? 11><
T)e A##as stru&ture is appro'imately 3>#m lon an 12#m =ie? al-Anbar provin&e =as on&e a )otbe for insurents: =it) one "raq offi&ial referrin to t)e area as It)e same sour&e: for al-Faia an as?I Co=ever: se&urity =as reporte to )ave improve in 2>1> as Al-Faia =as &)ase to nei)bourin territories? An "raqi oil 11>5 !)ina Opens Oil $iel in "raq: *e& .ork /imes: 2; une 2>11 11>6 !)inese %mbassy On asit Oil *eal An Business "n "raq: "ikiLeaks: < ,eptember 2>>; 11> "raq ,ins $inal A##as .as *eal =it) O.A, Ira' Business *e&s: 1 O&tober 2>11 11>; "raq to ,in !ontra&t it) orea .as for A##as $iel Toay? Bloomberg: 13 O&tober 2>11? 11>< A##as? Ira' )nergy: retrieve 13 *e&ember 2>11?
1<3
offi&ial a&#no=lee to Iraq Oil Report t)e iffi&ulty of operatin in t)e area: t)ou) "raqi an Ameri&an se&urity offi&ials ismisse &on&erns?111> T)e fiel )ol t)e &ountrys larest reserves of as: =it) 5?6 trillion &ubi& feet t&f7? "raqi offi&ials )ave sai t)at t)e priority for t)e as =ill be omesti& &onsumption: mainly for po=er eneration: but )as left open t)e possibility of allo=in e'ports on&e omesti& nees are satisfie?1111
Contract ne5otiations "n /ay 2>1>: t)e overnment announ&e A##as =oul be part of t)e m: =)i&) =oul fo&us on "raqs as reserves? 1112 T)e oriinal eal a=are to &onsortium partners oas an aE/unay.as =as lon elaye ami neotiations bet=een ifferent sta#e)olers: )o=ever t)e eal to evelop t)e eposit =as finally sine in O&tober 2>11 uner an amene o=ners)ip stru&ture? 1113 +ner t)e terms of t)e oriinal bi: t)e plateau prou&tion taret =as 1>> //s&f million stanar &ubi& feet7 per ay an t)e propose remuneration fee =as G?5> per barrel of oil equivalent boe7 prou&e? 1114 "n /ay 2>11: aE/unay.as pulle out of t)e venture: leavin oas as t)e sole investor an operator an for&in t)e &ompany to ouble its s)are in t)e proje&t? 111> A ne= eal =as t)en neotiate an sine in O&tober 2>11 bet=een oas an t)e "raqi Oil /inistry? T)e &ompany &ommitt e to in&reasin prou&tion to 4>> //s&f per ay =it)in seven years an )olin t)at output for 13 years: earnin a G5?5> remuneration fee for ea&) boe prou&e?1111 A&&orin to Iraq Oil Report t)e A##as eal fa&es several politi&al obsta&les on a lo&al an national level? "n parti&ular: Anbari leaers emane t)at all as from t)e fiel stay =it)in t)e provin&e to serve e'istin an future lo&al eman: rat)er t)an bein e'porte?1115 T)e overnor of Anbar t)reatene to =it))ol se&urity an loisti&al support for forein &ontra&tors if t)e eal =ent t)rou) an =arne t)at: as a measure of last resort: t)e provin&e &oul assert autonomy from Ba)a? 111>
Production and e#port A&&orin to Iraq Oil Report: t)ere is a planne po=er plant lin#e to t)e A##as proje&t: as =ell as a provision establis)in a ma'imum number of years urin =)i&) t)e as prou&e &an be sent to a pro&essin fa&ility in ,yria before a &omparable omesti& fa&ility at A##as must be reay?1116 T)e issue of future e'ports from t)e A##as fiel )as &ause some is&ussion in "raq? Bein lo&ate &lose to t)e ,yrian borer: A##as is an attra&tive sour&e of as for t)e 111> Anbar: &entral overnments poise for fi)t over A##as? Ira' 0il !e1ort: 1 une 2>1>? 1111 A##as eal finally sine? Ira' Business *e&s: 13 O&tober 2>11? 1112 "raqi .as $rom A##as $iel Allbusiness-com 22 /ar&) 2>1> 1113 "raq ,ins $inal A##as .as *eal =it) oas? Ira' Business *e&s: 1 O&tober 2>11? 1114 Biin Results Overvie= for i&ensin Roun 3? Ira' )nergy: retrieve 13 *e&ember 2>11? 1115 .as eals avan&e: politi&al )urles remain? Ira' 0il !e1ort: 15 0ovember 2>1>? 1116 A##as eal finally sine? Ira' Business *e&s: 13 O&tober 2>11?
1<4
,out)ern !orrior pipeline proje&t: =)i&) nees a uarantee supply of as to &ompete =it) Russian pipelines feein %uropean &ustomers? A&&orin to Iraq Oil Report: Ba)a offi&ials promise "raqi as for 0abu&&o: but only after lo&al eman for refine prou&ts an ele&tri&ity )as been met?111
,adra Oil Field OilReserves Oil(rou&tion *is&overe $irst(rou&e
3billionbarrels
111;
na 1<< 2>13fore&ast7
111<
o&ation
asit(rovin&e:%ast?
(rin&ipal (artners
.aEprom 3>V7
,e&onary (artners
oas 22?5V7: (etronas 15V7: T(AO ?5V7: Oil %'ploration !ompany 25V7111;
T)e Bara oil fiel is situate in asit overnorate: 16> #m sout)-east of Ba)a: an e'tens a&ross t)e borer =it) "ran? T)e fiel is appro'imately 16#m lon an 6#m =ie? T)e Bara is&overy =ell =as rille in 1<s: =as abanone ue to t)e impa&t of =ar?112> .aEprom es&ribes t)e Basra eposit as )avin a &)allenin profile: =it) a sinifi&ant part of t)e surfa&e requirin &learan&e of mines? "n preparation for a 2>11 3* seismi& survey of t)e eposit: =or# =as &arrie out to remove =eapons over an area of appro'imately 12:>>> square metres?111<
Contracts ne5otiated T)e .aEprom-le &onsortium =as t)e only roup to bi for t)e &ontra&t area in "raqs se&on li&ensin roun of 2>>>< t)at it )a a&&epte a revise bi form t)e &onsortium: =)i&) &omprise of .aEprom 3> per&ent7: oas 22?5 per&ent7: (etronas 15 per&ent7 an T(AO ?5 per&ent7? T)e 25 per&ent "raqi state partner =as t)e Oil %'ploration !ompany?1121 T)e &ontra&t spe&ifie t)e &onsortium =oul pay a G1>> million sinature bonus an t)e remuneration fee =oul be G5?5> per barrel? T)e offi&ial press release announ&in 111 Anbar: &entral overnments poise for fi)t over A##as? Ira' 0il !e1ort: 1 une 2>1>? 111; .aEprom beins rillin at "raqs Bara fiel: Arabian 0il and as: 2 0ovember 2>11 111< .aEprom 0eft ,tarts *rillin "n T)e Bara $iel "n "raq: 0il?oice: 2; 0ovember 2>11 112> Bara? Ira' )nergy: retrieve 12 *e&ember 2>11? 1121 "raqMs ,e&on (etroleum i&ensin Roun Bara !ontra&t Area J Biin Results: Petroleum Contracts and Licensing %irectorate: 2>>
1<5
t)e &ontra&t sai t)e &onsortium )a oriinally offere G6 a barrel but ultimately a&&epte t)e lo=er fiure? As =ell as &rue oil: t)e &ontra&t stipulates t)at t)e fee is also payable on liqui petroleum as (.7 an natural as )ane over to t)e state partner from a as pro&essin plant? T)e fee =as to #i&# in =)en prou&tion rea&)es 15:>>> barrels per ay bp7? T)e release spe&ifie t)at t)e state partner also born t)e &osts of evelopment of t)e fiel?1121
Production and e#port "n 0ovember 2>11: t)eone overnor of asit t)at t)eT)e firstovernor oil =ell )a been rille at Bara fiel: of 1 =ells to beannoun&e rille at t)e site? e'pe&te t)at t)e fiel =oul rea&) pea# prou&tion of 1>:>>> bp by 2>16: ma#in t)e asit provin&e one of t)e main oil prou&in provin&es in t)e &ountry? 1122 T)e ept) of t)e appraisal =ell rea&)e 4:<>> metres an rillin =as e'pe&te to be &omplete in April 2>12?1123
,ai 6assan Oil Field OilReserves
2?>;billionbarrels
Oil(rou&tion
2>>:>>>bp2>127
1124 1124
o&ation
*ibis(rovin&e:0ort)?
(rin&ipal(artners
state-manae
T)e Bai Cassan fiel lies in t)e nort)ern provin&e of *ibis: just sout)-=est of t)e ir#u# fiel? 1125 T)e fiel lies =it)in a tra&t of ispute territory t)at is &laime by bot) t)e &entral overnment an uris) reional aut)orities? T)e fiel is operate by "raqs state-o=ne 0ort) Oil !ompany 0O!7?1124 ,e&urity &on&erns =ere raise in une 2>12 =)en seven bombs =ere is&overe at t)e fiel: in&luin t=o t)at e'ploe beneat) pipelines at t)e site: alt)ou) prou&tion output =as not isrupte?1124
Contract ne5otiations On t)e 2 uly 2>>< t)e (etroleum !ontra&ts an i&ensin *ire&torate of t)e /inistry of Oil announ&e t)at: espite several bis from international oil &ompanies "O!s7 for t)e Bai Cassan &ontra&t area: t)e &ountry e&ie not to a=ar an international &ontra&t for t)e fiel ?1126 A bi =as propose by a &onsortium of !ono&o()illips: !0OO! 1122 $irst =ell in Bara oil fiel rille: .overnor: Ira' %aily Journal: 2; 0ovember 2>11 1123 .aEprom 0eft ,tarts *rillin "n T)e Bara $iel "n "raq: 0il?oice: 2; 0ovember 2>11 1124 Bombs taret ir#u# provin&e oil fiel: Ira' 0il 4orum: < une 2>12? 1125 Bai Cassan: Ira' )nergy: retrieve 12 *e&ember 2>11? 1126 "raqMs $irst (etroleum i&ensin Roun Bai Cassan !ontra&t Area J Biin Results:
1<6
an ,ino&)em: )o=ever t)e remuneration fee bi of G26?> =as =ell in e'&ess of t)e minimum establis)e by t)e /inistry of Oil? A&&orin to a lea#e +, iplomati& &able: !ono&os bi =as by far t)e )i)est fee requeste in t)e bi roun an t)ou) t)ey =ere t)e sole biers: t)ey refuse to reu&e t)eir offer to t)e ma'imum G4 fee an =al#e a=ay =it) no a=ar?112
Production and e#port A&&orin to &omments mae by /anaa al-Obeii: *ire&tor .eneral of 0ort) Oil !ompany in 2>><:toprou&tion Cassan in&rease from 15>:>>> proje&t barrels an per ay bp7 0O!7 in mi-2>>; 15:>>> bpatinBai 2>>< follo=in a =ater inje&tion t)e 112; rillin of t)ree ne= =ells ? "t =as reporte in 2>11 t)at t)e 0O! e'pe&te to in&rease prou&tion to 24>:>>> bp?112<
4+astern Fields4 Oil(rou&tion
na
*is&overe
1<2:1<3;:1<6:1<<
o&ation
*iyala overnorate: 0ort)-%ast
(rin&ipal(artners
state-manae
T)e %astern $iels is t)e &olle&tive name for a roup of four unevelope fielsN .il abat: )as)em AlA)mar: 0au *oman an Fumar? T)e fiels are lo&ate in *iyala overnorate in nort)-eastern "raq: some 1>>-15>#m sout) of ir#u# &ity? T)e fiels =ere is&overe in 1<2 )as)em Al-A)mar7: 1<5; .ilabat7: 1<6 0au *oman7 an 1<< Fumar7? As of *e&ember 2>><: ei)t =ells )a been rille at t)e &ontra&t area: t=o in )as)em Al-A)mar: t)ree =ells in .ilabat: t=o =ells in 0au *oman an one =ell in Fumar? 113> Oil an as is&overies )ave been mae in multiple reservoirs in t)e four fiel: &onfirme by su&&essful =ell tests? 1131 Al-Faia an ot)er insurent roups )ave been a&tive in t)e area aroun t)e fiels: an pose an ae ris# to investors an =or#ers? T)ey are also roupe in ispute territories fou)t over bet=een "raqs Arabs an urs?1131
!e1ublic of Ira' (inistry of 0il : 2 uly 2>>
112 "raq /inistry Of Oil (repares To "nvite "n $orein Oil !ompanies: "ikiLeaks: O&tober 2>>; 112; /anaMa Al-Obeii: Ira' 0il 4orum: 4 ,eptember 2>>< 112< %'port infrastru&ture eal latest of oil re-investment: Ira' 0il !e1ort: 1 ,eptember 2>11? 113> "raqMs ,e&on (etroleum i&ensin Roun %astern $iels !ontra&t Area J Biin Results: (inistry of 0il Petroleum and Contracts Licensing %irectorate: 11 *e&ember 2>>>
1<
Contract ne5otiations $ollo=in "raqs se&on post=ar li&ensin roun: t)e (etroleum !ontra&ts an i&ensin *ire&torate (!*7 of t)e /inistry of Oil announ&e in *e&ember 2>>< t)at no bis )a been re&eive for t)e %astern $iels &ontra&t area?1132 A&&orin to Iraq Oil Report: t)e "raqi Oil /inistry =ante t)e fiels to be prou&in at ;>:>>> barrels per ay bp7 =it)in seven years an t)en maintaine for anot)er seven years? T)e =innin bier =oul )ave to pay a G1>> million an =oul be require to spen at least G15> million in proje&t &osts: =)i&) =oul be refunable?1133
+ast ,a5hdad Oil Field OilReserves *is&overe $irst(rou&e
;billionbarrels2>1>7
1134
1<6 1<;>
1135
o&ation
%astBa)a?
(rin&ipal(artners
state-manae
T)e super-iant %ast Ba)a oil fiel is situate in t)e Ba)a an ,alain overnorates: 1> #ilometres of Ba)a &ontra&t arease&tion for t)enort)-=est fiel is aroun 65 #ilometreslon an 11east #ilometres =ie&ity? an T)e &overs only t)e of 1135 t)e *iyala river? *espite prove reserves of ; billion barrels: urin t)e 2>>< li&ensin rouns in "raq t)ere =ere no bis by t)e international &onsortia to e'ploit t)e eposit? 4orbes maaEine suests t)at t)is may be&ause mu&) of t)e eposit lies uner resiential areas:1134 as part of t)e fiel lies uner t)e &ity of Ba)a? 1136 $ollo=in t)is: Oil /inister ,)a)ristani announ&e t)at t)e Oil /inistry =oul evelop t)e %ast Ba)a fiel on its o=n?113 "n /ay 2>1> t)en-Oil /inister ,)a)ristani sai anot)er biin roun &oul be )el if t)ere =as enou) preliminary interest from international &ompanies? Ie =ill tal# to &ompanies an if =e fin t)e esire to evelop t)ese fiels: t)en =e &oul announ&e anot)er biin roun for t)e qualifie &ompanies to evelop t)ose fiels:I )e sai in an intervie=?113; 1132 "raqMs ,e&on (etroleum i&ensin Roun %astern $iels !ontra&t Area J Biin Results: (inistry of 0il Petroleum and Contracts Licensing %irectorate : 11 *e&ember 2>>>1> 1135 %ast Ba)a: Ira' )nergy: retrieve 12 *e&ember 2>11 1136 "raq (roresses to=ar a $uture Built on Oil ealt): %er S1iegel: 4 O&tober 2>12? 113 "raq Oil $iel .oes to Royal *ut&) ,)ell an (etronas: *e& .ork /imes: 11 *e&ember 2>>1>?
1<;
Production As of 2>12 "raqi an oranian &ompanies =ere rillin at t)e site an prou&tion rea&)e 1>:>>> barrels per ay bp7? Co=ever prou&tion at t)e fiel is slo=er t)an in esert reions as t)e area is so ensely populate?113<
0arraf Oil Field Oil Reserves Oil(rou&tion
;6> million - 1 billion barrels 35:>>>bp2>127
114>1141
1142
*is&overe
1<;>s1142
o&ation
*)iFar.overnorate:,out)?
(rin&ipal(artners
(etronas45V 71141
,e&onary (artners
ape' 3>V7: ,out) Oil !ompany 25V7
A(",pe&ifi&ity
15-36S
T)e .arraf oil fiel is situate in *)i Far .overnorate in sout)ern "raq: some 5 #ilometres #m7 nort) =est of Al-Refaei &ity: < #m sout)-east of FalMat ,u#er &ity an ;5 #m nort)inofmultiple 0asiriya)? *is&overe 1<;4: t)e oil ranes from 15 to 36 SA(": reservoirs? T)einfiel is 1?5 #mfoun lon an 5?5 in #mravity =ie? 1143 A&&orin to Ira' 0il !e1ort t)e *)i Far provin&e is slate to be one of t)e biest prou&in areas in t)e &ountry?1144
Contract ne5otiations A &onsortium le by /alaysian (etronas submitte a bi for evelopment of t)e .arraf fiel on t)e first ay of "raqs se&on li&ensin roun in *e&embe r 2>> per&ent7: an ape' 4> per&ent7? A&&orin to t)e eal: t)e remuneration fee offere =as G1?4< an t)e plateau prou&tion taret =as 15>:>>> barrels per ay bp7? 1145 T)e &onsortium suffere a setba&# at t)e site =)en lo&al tribesmen refuse to &ee t)eir an&estral lans pea&efully =it)out a &as) payment from (etronas? T)e allee 113< "raq *evelops %ast Ba)a Oilfiel: Ira' Business *e&s: 1< April 2>12? 114> F8A .arraf Oilfiel *ire&tor ,ettar /a)i abara: Ira' 0il !e1ort: 14 0ovember 2>12? 1141 eat)erfor ins G2>>m (roje&t at .arraf Oil $iel: Ira' Business *e&s: 2> O&tober 2>11? 1142 (etronas ta#in bis for .arraf oil line in "raq: Arabian 0il and as: 11 une 2>12? 1143 .arraf Ira' )nergy: retrieve 12 *e&ember 2>11? 1144 (rotestors storm .arraf oil fiel after reliious ispute: Ira' 0il !e1ort: 3> 0ovember 2>12? 1145 Oil ,tampee "raq:s 2n Bi Roun Results: "ikileaks: 14 *e&ember 2>>
1<<
e'tortion re= &onemnation from t)e "raqi Oil /inistry )o=ever: an t)e tribal s)ei#s enie any t)reat of violen&e?1146
Production and e#port A&&orin to Anan .alay: former &)airman of t)e fiels manaement &ommittee: output from t)e fiel =as e'pe&te to )it 5>:>>> barrels per ay bp7 by t)e en of 2>12: 6>:>>> bp in 2>13 an 1>>:>>> bp in 2>14? .arraf )as an eventual output taret of 23>:>>> bp: alt)ou) t)e (etronas-ape' partners)ip may loo# to in&rease prou&tion beyon"raqi t)at*eputy level: (rime a&&orin to for offi&ials? in uly 2>12 ,)a)ristani: /inister %neryCo=ever Affairs: reportely ureCussein t)e &on114 sortium evelopin t)e .arraf fiel to spee up proress on t)e proje&t? "n une 2>12: as t)e &onsortium =as rampin up prou&tion: (etronas opene up a tener for t)e &onstru&tion of a ne= pipeline to ta#e &rue from t)e fiel to &entral transport infrastru&ture?114;
6alfaya Oil Field 114<
OilReserves
4?1billionbarrels
Oil(rou&tion
>:>>>bpuly2>127
115>
*is&overe
1<6
o&ation
/aysan overnorate: ,out)-%ast?
(rin&ipal(artners
!0(!3?5V 71151
,e&onary (artners
Total 1;?5V7: (etronas 1;?5V7: ,out) Oil !ompany 25V7 1151
T)e Calfaya oil fiel =as is&overe in 1<6 an is lo&ate in t)e /aysan overno rate in t)e sout)-east of "raq: 35 #ilometres #m7 sout)-east of Amara) &ity? 1152 As of 2>1> t)e fiel =as proven to )ol 4?1 billion barrels of re&overable reserves: =it) a prou&tion potential of 2>>-535:>>> barrels per ay bp7? 1151 T)e Calfaya eposit is appro'imately 35 #m lon an 1> #m =ie?1152 A&&orin to Ira' 0il !e1ort in 2>12: /aysan provin&e is emerin as a major ne= 115>
sour&e of oil an is on tra&# to be&omin "raqs se&on larest prou&in provin&e? 1146 (etronas preparin for rillin in .arraf: Ira' 0il !e1ort: ; uly 2>1>? 114 ,)a)ristani tells ape': (etronas to ,pee up *evelopment at .)arraf: Ira' Business *e&s: 1 uly 2>1>? 114; (etronas ta#in bis for .arraf oil line in "raq: Arabian 0il and as: 11 une 2>12? 114< !0OO!: T(AO finaliEe /issan fiels &ontra&t: Ira' 0il !e1ort: 1 /ay 2>1>? 115> /issan )erals oil boom =it) Calfaya openin: Ira' 0il !e1ort: 1; uly 2>12? 1151 "raq-!0(!,O! - Calfaya Oil $iel: )nergy "orld: 1 ,eptember 2>1>? 1152 Calfaya Ira' )nergy: retrieve 14 *e&ember 2>11?
2>>
Contract ne5otiations $ollo=in "raqs se&on petroleum li&ensin roun )el in *e&ember 2>><: t)e Calfaya &ontra&t area =as a=are to an international &onsortium le by !)inese !0(!? T)e &onsortium split =as 3?5 per&ent to !0(!: 1;?5 per&ent ea&) to (etronas an Total: an 25 per&ent to t)e "raqi state partner? T)e !0(!-le roup beat t)ree &onsortia =)i&) submitte offers to =in t)e fiel: in&luin offers le by 0or=ays ,tatoil an Russias u#oil?1153 +ner t)e terms of t)esou)t eal: t)e pai a remuneration fee of G1?4> per barrel: lo=er t)an t)e G1?6 by aroup rival is&onsortium le by "nian state-o=ne O0.! 1154 Dies) t? T)ey must also pay "raq a non-re&overable sinature bonus of +, G15> million?1155 T)e &ontra&t stipulates t)at prou&tion s)oul rea&) 535:>>> bp: in aition to provision of as prou&ts to nei)borin po=er stations?1156 "n April 2>1> Total !%O !)ristop)e e /ararie sai )is &ompany =oul li#e to a&quire a larer sta#e in t)e fiel? I"raq is a stron part of our stratey in t)e =orl an =e &ertainly ont inten to remain a minority partner in t)e Calfaya fiel:I e /ararie =as quote as tellin !euters?115
Production and e#port Oil /inister Abul areem uaiby sai t)at t)e se&on p)ase of Calfaya =ill involve prou&tion &apa&ity rea&)in 2>>:>>> bp by t)e en of 2>13: =)ile after t)e t)ir p)ase prou&tion =ill rise to 4>>:>>> bp by t)e en of 2>14? T)e &onsortium plan s to )it prou&tion of 6>>:>>> bp by t)e en of 2>16? 115; "n une 2>12: t)e &ompany sai t)e first p)ase of operations at Calfaya =as operational an prou&in aroun 12>:>>> bp?115< /aysan Oil !ompany /O!7 )as state t)at any liqui petroleum as (.7 from Calfaya =oul be transferre to "raqi state-run ,out) .as !ompany for omesti& nees an po=er eneration?1153
*a;noon Oil Field OilReserves
13billionbarrel s116>
1153 "raq-!0(!,O! - Calfaya Oil $iel: )nergy "orld: 1 ,eptember 2>1>? 1154 O0.! Dies) qualifies for "raqs oil e'ploration biin: /he )conomic /imes: < Auust 2>11 1155 "raq in#s !0(!: Total: (etronas Calfaya eal: A() Info: 26 anuary 2>1>? 1156 $our Oil ells *rille at Calfaya: Ira' Business *e&s: 16 /ay 2>11? 115 Total eyes bier Calfaya sli&e: U1stream 0nline: 22 April 2>1>? 115; (etro!)ina: Total: (etronas !alari ,tart Oil (rou&tion at "raqs Calfaya: !ig#one: 1; uly 2>12? 115< !0(! pumpin 12>:>>> bp from Calfaya fiel: Arabian0ilandas-com: 1; une 2>12? 116> "raq oil evelopment ri)ts &ontra&ts a=are: BBC *e&s: 11 *e&ember 2>><
2>1
Oil (rou&tion
1;:6>> bp first quarter 2>127
*is&overe
1<5
o&ation
Al-Basra):,out)-%ast?
(rin&ipal(artners
,)ell45V7
1161
,e&onary (artners (etronas 3>V7: /aysan Oil !ompany 25V7 1162
T)e super-iant /ajnoon oil fiel is situate in t)e Basra overnorate in sout)-east "raq: e'tenin nort)erly to=ar t)e /aysan overnorate ?1163 T)e name /ajnoon meanin &raEy7 =as &)osen ue to t)e e'&essive presen&e of oil in a limite area on t)e east of t)e Tiris River? T)e fiel is aroun 6> #ilometres #m7 lon an 15 #m =ie: is lo&ate 6> #m nort)=est of Basra &ity an lies mostly uner man-mae islans in t)e Ca=iEa) mars)es: &lose to t)e "ranian borer?1164 /ajnoon =as is&overe by BraEilian Braspetro in 1<5: )o=ever evelopment &ame to a )alt in 1<;> urin t)e enineerin p)ase of t)e proje&t: ue to t)e "ran-"raq ar? At t)e time: Braspetro )a finis)e rillin of 2> =ells an 14 rillin ris =ere in servi&e? Over t)e &ourse of t)e =ar: "ran o&&upie an sabotae t)e area? $ollo=in t)e =ar: "raqs ,out) Oil !ompany ,O!7 restarte t)e prou&tion? "n t)e 1<<>s $ren&) Total neotiate a evelopment &ontra&t =it) ,aam Cussein but =as ultimately unable to sin t)e eal ue to +0 san&tions impose on "raq? T)e eal =as eventually annulle by overnment Cussein in 2>>2? "n 2>>t)e Total an !)evron ne= "raqi to e'plore /ajnoon fiel?1165sine an areement =it) t)e
Contracts ne5otiated $ollo=in "raqs se&on post-=ar li&ensin roun in 2>><: t)e "raqi overnment sine a 2>-year servi&e &ontra&t =it) international oil &ompanies ,)ell an (etronas to evelop t)e /ajnoon oil fiel? "raqi state-o=ne ,out) Oil !ompany ,O!7 an /aysan Oil !ompany /O!7 also forme part of t)e roup: =)i&) intene to boost prou&tion to 1?; million barrels per ay bp7 from 45:>>> bp in 2>1>? ,)ell is t)e lea operator in t)e &onsortium =it) a 45 per&ent sta#e: (etronas )ols 3> per&ent an t)e "raqi state )ols 25 per&ent?1166 T)e bi from ,)ell an (etronas beat a rival bi from $ran&es Total an !)inas !0(!? T)e &onsortium plee to in&rease output to 1?; million bp? +ner t)e terms of t)e 1161 +(*AT% 1-,)ell says may miss 2>12 /ajnoon output taret: !euters: 1; ,eptember 2>12? 1162 Calliburton ,ins G15>m !ontra&t for "raqMs /ajnoon Oilfiel: Ira' Business *e&s: 24 0ovember 2>1> 1163 /ajnoon: Ira' )nergy: retrieve 12 *e&ember 2>11? 1164 /ajnoon $iel: "raq: 0ffshore /echnology: retrieve 12 *e&ember 2>11? 1165 +ner Ti)t ,e&urity: "raq ,ells Ri)ts to *evelop 2 Oil $iels: *e& .ork /imes, 11 *e&ember 2>>1>?
2>2
eal t)e &ompanies re&eive a remuneration fee of G1?3< per barrel?116
Production and e#port "n ,eptember 2>11: ,)ell Di&e (resient Cans 0ij#amp announ&e t)at prou&tion =as at a level of appro'imately 5:>>> bp? 116; But in t)e first quarter of 2>12 prou&tion fell - output levels varie: =it) )i) s of 54:>>> bp but an averae of only 1;:6>> bp? T)e upper limit =as as mu&) as pipeline &apa&ity &oul )anle? As a result of t)ese &onstraints in une 2>12 a s)uto=n bean at /ajnoon for maintenan&e an in orer 116<
to brin ne= prou&tion fa&ilities online? Reional ,)ell boss /ar# !arne &ommente in 2>12 t)at Iit =oul be fair to say t)at proress )as been slo=er t)an =e oriinally )ope?I 11> But a&&orin to ,)ells 2>13 evelopment proramme for /ajnoon: output =as e'pe&te to rise above 2>>:>>> bp over t)e year: above t)e level neee to start re&overin &osts?111 "nfrastru&ture limitations )ave been a #ey obsta&le for t)e &onsortium: as t)e e'istin 2;-in&) /ajnoon pipeline &annot &ope =it) t)e proje&te in&rease in &rue prou&tion? A letter from ,)ells manain ire&tor at /ajnoon state t)at Ia #ey &on&ern??? remains t)e un&ertain elivery of t)e $irst !ommer&ial (rou&tion $!(7 pipelineI? 112 T)e evelopment )as also suffere setba&#s su&) as une'pe&te mine &learan&e =or#: elays in &ustoms an in&lement =eat)er &onitions: t)at )ampere evelopment? 113 "n *e&ember 2>12 t)e is&overy of an an&ient (ersian ar&)aeoloi&al site at /ajnoon ae furt)er &ompli&ations in ,)ells evelopment of t)e fiel?114
*ansuriyah 0as Field .asin(rou&tion o&ation (rin&ipal(artners ,e&onary (artners
na *iyalaovernorate:%ast? T(AO3?5V7
115
Oil %'ploration !ompany 25V7: u=ait %nery !ompany 22?5V7: oas 15V7115
116 "raq oil evelopment ri)ts &ontra&ts a=are: BBC *e&s, 11 *e&ember 2>>>> bp: !euters: 2 ,eptember 2>11 116< +(*AT% 1-,)ell says may miss 2>12 /ajnoon output taret: !euters: 1; ,eptember 2>12? 11> .ently oes it: Petroleum )conomist: 26 ,eptember 2>12? 111 +(*AT% 1-,)ell sees "raq /ajnoon 2>13 output at over 2>>:>>> bp: !euters: 12 0ovember 2>12? 112 %'&lusive "raq pipeline elays t)reaten ,)ells /ajnoon: !euters: 26 Auust 2>12? 113 ,)ell %'pe&ts To /eet "raq Oil $iel Taret *espite ,etba&#s: "all Street Journal: 1< ,eptember 2>12? 114 Beyon t)e Cealines *e&? 11: 2>12: Ira' 0il !e1ort: 11 *e&ember 2>12? 115 BR A=are $%%*: F!,, !ontra&ts at /ansuriya: Ira' Business *e&s: 6 *e&ember 2>12?
2>3
T)e /ansuriya) as fiel is lo&ate 5> #ilometres #m7 nort)-east of Baquba &ity in *iyala provin&e: =)i&) is about 1>> #m nort)-east of Ba)a? 116 A&&orin to Ira' 0il !e1ort: in 2>11 t)e provin&e =as still sufferin from persistent insurent violen&e?11
Contract ne5otiations T)e /ansuriya) fiel =as initially put up for biin urin t)e first post=ar li&ensin roun in "raq in une 2>><: )o=ever t)e &ontra&t area attra&te no bis?11; T)e =innin bi for t)e fiel urin "raqs t)ir roun of li&ensin in 2>1> &ame from an international &onsortium le by Tur#is) enery &ompany T(AO: =)o )el a 5> per&ent sta#e? Ot)er &ompanies to parti&ipate in t)e &onsortium =ere u=ait %nery: =it) a 3> per&ent sta#e an oas =it) 2> per&ent?11< "n O&tober 2>1> t)e (etroleum !ontra&ts an i&ensin *ire&torate (!*7 of t)e /inistry of Oil announ&e t)at only one bi )a been re&eive for t)e fiel? T)e initial remuneration fee propose t)e &onsortium of G1> per barrel of oil equivalent boe7 =as above t)e ma'imum remuneration fee set by t)e /inistry: )o=ever t)e lo=er fiure of G =as subsequently a&&epte by t)e &onsortium? +ner t)e terms of t)e eal: t)e taret prou&tion plateau =as 32> million stanar &ubi& feet /ms&f7 per ay?11;>
Production and e#port As of *e&ember 2>12: t)e /ansuriya) fiel =as still in t)e evelopment stae an no as )a yet been prou&e at t)e site?11;1
*aysan Oil Fields OilReserves
2?5billionbarrels
11;2
Oil(rou&tion
<>:>>>bp2>1>7
11;3
o&ation (rin&ipal(artners ,e&onary (artners
/aysan overnorate: ,out)-%ast? !0OO!63?5V7
11;4
T(AO 11?25V7: "raq *rillin !ompany 25V711;4
116 /ansuriya: Ira' )nergy retrieve 13 *e&ember 2>11? 11 Tur#ey &ontinues enery stratey in "raq: Ira' 0il !e1ort 6 une 2>11? 11; $irst "raqi (etroleum i&ensin Roun: %eloitte, retrieve 13 *e&ember 2>11? 11< .as eals avan&e: politi&al )urles remain: Ira' 0il !e1ort: 15 0ovember 2>11? 11;> Biin Results Overvie= for i&ensin Roun 3: Ira' )nergy retrieve 13 *e&ember 2>11? 11;1 "raq-/ansuriya: +u&ait )nergy: retrieve 13 *e&ember 2>12? 11;2 +(*AT% 2-"raq in eal =it) !0OO!: T(AO for /aysan oilfiels: !euters: 1 /ay 2>1>? 11;3 "raq to *ouble Oil Output from /aysan $iels: B)%igest: retrieve 13 *e&ember 2>11? 11;4 "nternational A&tivities: /PA0: retrieve 13 *e&ember 2>11?
2>4
T)e /aysan oil fiels also #no =n as t)e /issan Oil $iels7 are a &omple' of fiels lo&ate aroun 15 #ilometres #m7 nort) of Basra &ity an in&lue t)e Abu .)irab: abal $auqi $a##a7 an BuEuran oil fiels?11;5 T)e /aysan provin&e s)ares a borer =it) "ran an in *e&ember 2>>< a roup of "ranian borer uars &rosse t)e borer an o&&upie one of t)e =ells at t)e $a##a fiel: raisin an "ranian fla? T)e o&&upation laste for less t)an 4; )ours: )o=ever t)e uars remaine in t)e area for anot)er mont)? A&&orin to Ira' 0il !e1ort: t)is raise an anti-"ranian sentiment borne from =ar in t)e 1<;>s: furt)er &ompli&atin t)e efforts to emar&ate t)e borer an t)us t)e fiels t)at &ross it?11;6
Contract ne5otiations T)e /aysan &ontra&t area =as put up for biin in "raqs first petroleum li&ensin roun: but t)e fiel only attra&te one bi an no &ontra&t =as a=are?11; Co=ever in /ay 2>1> "raq sine a final eal =it) !)inas !0OO! an Tur#is) staterun T(AO to evelop t)e /aysan oilfiel &omple'? !0OO!s oriinal partner for evelopin t)e fiel: ,ino&)em: pulle out of t)e eal =)en !0OO! e&ie to re&onsier an a&&ept t)e "raqi overnments propose remuneration fee of G2?3> per barrel of oil prou&e? T(AO t)en joine t)e venture to fill t)e ap? !0OO! an T(AO set t)e prou&tion plateau taret for t)e fiel at 45>:>>> barrels per ay bp7? !0OO! )ols a 63?5 per&ent sta#e in t)e venture: =)ile T(AO )ols 11?25 per&ent 11;; an t)e "raq *rillin !ompany "*!7 )ols a 25 per&ent sta#e?11;5
Production and e#port As of 2>1>: t)e /aysan fiels =ere prou&in at a level of <>:>>> bp? 11;<
*iddle Furat Oil Fields OilReserves
6>>millionbarrelsofoil
11<>
*is&overe
1<6>:1<;3:1<;1
o&ation
arbalaovernorate:!entre?
(rin&ipal(artners
state-manae
T)e /ile $urat area is a &luster of t)ree unevelope oil fiels lo&ate in arbala 11;5 "nternational A&tivities: /PA0: retrieve 13 *e&ember 2>11? 11;6 !0OO!: T(AO finaliEe /issan fiels &ontra&t: Ira' 0il !e1ort: 1 /ay 2>1>? 11; "raq Oil an .as eislation: Revenue ,)arin: an +?,? (oli&y: Congressional !esearch Service: 3 0ovember 2>>1>? 11;< "raq to *ouble Oil Output from /aysan $iels: B)%igest: retrieve 13 *e&ember 2>11? 11<> 0o bis for /ile $urat fiels: Ira' 0il !e1ort: 12 *e&ember 2>>
2>5
overnorate in &entral "raq: sout) of Al-RaEaEa a#e? T)e fiels =ere is&overe in 1<6> ifl7: 1<;3 /erjan7 an 1<; est ifl7? 11<1 arbala provin&e is )ome to one of t)e )oliest &ities in ,)iite "slam? 11<2 T)e appro'imate siEes of t)e fiels are 2?5 #ilometres #m7 by 2 #m /erjan7: 1> # m by ; #m est ifl7 an 5 #m by 1?5 #m ifl7?11<1
Contract ne5otiations T)e &ontra&t area =as put up for biin in "raqs se&on post-=ar li&ensin roun? Co=ever on t)e 12 *e&ember 2>>< "raqs (etroleum !ontra&ts an i&ensin *ire&torate (!*7 announ&e t)at no bis )a been re&eive for t)e /ile $urat &ontra&t area?11<3 "n /ay 2>1>: oil minister Cussein ,)a)ristani announ&e t)at t)e overnment =as &onsierin invitin forein &ompanies to evelop t)e fiels? 11<4
Nahr ,in 3mar Oil Field OilReserves Oil (rou&tion %stimate.asin(la&e
6?5billionbarrels
11<5
5>:>>> barrels of oil per ay 2>><711<5 12b&
f11<6
*is&overe
1<4>s
o&ation
Basra(rovin&e:,out)?
(rin&ipal(artners
state-manae
T)e 0a)r Bin +mar fiel also #no=n as t)e 0a)r +mr fiel7 is lo&ate in sout)ern "raq: 15 #ilometres #m7 to t)e nort) of Basra? T)e eposit &overs an area rou)ly 4> #m lon by 25 #m =ie an =as first rille in 1<4;?11< $ran&es Total aree to survey t)e fiel in 2>>;? T)ey estimate t)at it )el 6?6 billion barrels of &rue an 12 billion &ubi& feet b&f7 of natural as? 11<6
11<1 /ile $urat: Ira' )nergy: retrieve 13 *e&ember 2>>11? 11<2 0o bis for /ile $urat fiels: Ira' 0il !e1ort: 12 *e&ember 2>>>1> 11<5 T)ree "O!s in bilateral neotiations as "raq attempts to improve li&ensin roun terms: A()info 24 /ar&) 2>>>11?
2>6
Contract ne5otiations "n /ar&) 2>>< Total: ,tatoil: !)evron an a possible fourt) "raqi state-o=ne oil &ompany =ere reporte to be )olin neotiations =it) t)e "raqi /inistry of Oil over t)e 0a)r +mr fiel?11<; Co=ever as of *e&ember 2>12 no eals )a been mae an "raqs state-o=ne ,out) Oil !ompany ,O!7 =as evelopin t)e fiel?
Production and e#port "n ,eptember 2>1>: t)e ,O! e&ie to in&rease t)e fiels prou&tion to >:>>> barrels per ay bp7 by t)e last quarter of 2>11?11<<
Na;mah Oil Field OilReserves Oil(rou&tion
;>millionbarrel s12>> na
*is&overe
1<3412>>
o&ation
0ineve)overnorate:0ort)?
(rin&ipal(artners ,e&onary (artners
,onanol5V7
12>1
0ort) Oil !ompany 25V 712>1
T)e 0ajma) oil fiel =as is&overe in 1<34 an is situate in 0ineve) overnorate: 5> #ilometres #m7 sout) of /osul &ity? 12>2 T)e fiel is 11 #m lon an 4?5 #m =ie 12>3
Contract ne5otiations Anolan oil &ompany ,onanol =as t)e only &ompany to bi for t)e 0ajma) &ontra&t area in t)e se&on li&ensin roun of 2>>>< t)at t)e &ompany )a been a=are t)e &ontra&t area?12>2 T)e &ontra&t spe&ifie t)e &onsortium =oul pay a +, G1>> million sinature bonus? 12>2 ,onanol oriinally offere to a&&ept a remuneration fee of G;?5> per barrel: but later 11<; T)ree "O!s in bilateral neotiations as "raq attempts to improve li&ensin roun terms: A()info 24 /ar&) 2>>1>? 12>> ,onanol ta#es 0ajma), Ira' 0il !e1ort: 12 *e&ember 2>>1 *uo eye ,onanols "raqi assets: U1stream 0nline: 1< uly 2>1>? 12>2 "raqMs ,e&on (etroleum i&ensin Roun 0ajma) !ontra&t Area J Biin Results: (inistry of 0il Petroleum and Licensing %irectorate: 12 *e&ember 2>>3 0ajma): Ira' )nergy: retrieve 12 *e&ember 2>11?
2>
a&&epte t)e ma'imum fiure of G6 per barrel allo=e by t)e /inistry of Oil? T)e eal spe&ifie t)at t)e state partner: t)e "raq *rillin !ompany "*!7: also bore t)e &osts of evelopment of t)e fiel? T)e 0ajma) fiel )ols sinifi&ant a&&umulations of )eavy oil 15 to 2>SA("7? 12>4 Reports by t)e BB! sueste t)at t)e )i) fees pai for t)e &ontra&t area to ,onanol refle&t t)e operational ris#s at t)e site an t)e relatively lo= quality of oil? 12>5
Production and e#port +ner t)e &ontra&t: t)e &ompany &ommitte uner t)e areement to rea&)in a prou&tion plateau of 11>:>>> barrels per ay bp7: an )olin it for nine years? 12>6 "n /ar&) 2>11 ,onanol starte =or# at t)e 0ajma) fiel an =as ue to start to i =ells in April 2>11: a&&orin to a report from As&at al3Ira'?12>
Nasiriyah Oil Field OilReserves
4?4billionbarrels
12>;
Oil(rou&tion
12:>>>bp2>127
12><
$irst(rou&e
2>><
o&ation (rin&ipal(artners
,out)ofBa)a? state-manae
T)e 0asiriya) fiel: lo&ate sout) of t)e &apital Ba)a an =it) an estimate 4?4 billion barrels of &rue reserves: =as not in&lue in eit)er of "raqs 2>>< biin rouns?
Contract ne5otiations A apanese-le &onsortium: in&luin 0ippon Oil !orporation: rea&)e an a&&or in prin&iple =it) t)e "raqi overnment in Auust 2>>< for oil evelopment ri)ts at t)e fiel: but neotiatio ns =ere effe&tively suspene in anuary 2>1>? T)e apanese &onsortium )a submitte bis for t)e &ontra&t to "raqs Oil /inistry in $ebruary 2>>< alon =it) ,pains Repsol an "talys %ni? "n anuary 2>11 apanese trae minister A#i)iro O)ata mae an unannoun&e visit to Ba)a an &alle on t)e "raqi overnment to resume neotiations =it) a roup of apanese firmssubsequently over t)e evelopment of t)e 0asiriya): but =it)out su&&ess? T)e "raqi overnment mae t)e e&ision 12>4 0ajma): Ira' )nergy: retrieve 12 *e&ember 2>11? 12>5 "raq oil &ontra&t oes to Anolas ,onanol: BBC *e&s: 3> *e&ember 2>>6 "raqMs ,e&on (etroleum i&ensin Roun0ajma) !ontra&t Area J Biin Results: (inistry of 0il Petroleum and Licensing %irectorate: 12 *e&ember 2>> ,onanol to ,tart or# on 0ine=a Oilfiels: Ira' Business *e&s: 14 /ar&) 2>11? 12>; "raq to evelop 0asiriya) oilfiel alone: ())%: 1 /ar&) 2>1> 12>< 0asiriya) oil fiel prou&tion =ill rise to 35 t)ousan barrels per ay: /he Ira'i %inar: 1> ,eptember 2>12?
2>;
to evelop t)e 0asiriya) oil fiel on its o=n?12>; Co=ever in Auust 2>12 "raqs (etroleum !ontra&ts an i&ensin *ire&torate (!*7 announ&e t)at it =as preparin for a li&ensin roun to evelop t)e fiel an to buil a refinery in t)e area? T)e fiel an refinery =oul be &onsiere as a sinle proje&t?121>
Production and e#port "n une 2>><: t)e &)ief enineer at t)e fiel tol press t)at prou&tion =as ue to start imminently an t)at oil from t)e fiel =oul be transferre to Basra via pipeline?1211 *)iya aafar: )ea of t)e ,out) Oil !ompany ,O!7: state in $ebruary 2>1> t)at t)ey planne to rill ten oil =ells in 0asiriya) over t)e year? Ce &ommente t)at L=e are &apable of boostin prou&tion from 0asiriya) from 1>:>>> barrels per ay bp7 to 5>:>>> bp by t)e en of 2>1>?I 1212
;>>millionbarrels 2>1> 71213
*is&overe
1<2
$irst(rou&e o&ation
1<3>s 0ineve) overnorate:,out)-%ast? 1214
(rin&ipal(artners
,onanol5V7
,e&onary (artners
,out) Oil !ompany 25V7
A(",pe&ifi&ity
15
1214
T)e ;>>-million barrel Fayara fiel is lo&ate in 0ineve): #no=n as one of t)e most anerous reions of t)e &ountry? 1215 T)e fiel =as is&overe in 1<2 by Britis) Oilfiel *evelopment? Faraya lies =it)in t)e same stru&tures as t)e 0ajma) fiel?1216 T)e eposit is notable for its very )eavy an sour &rue &ompare to t)e &rues of ot)er "raqi fiels?121 "n 1<<> t)e oil &oul not yet be refine an only a limite volume =as use for asp)alt an ot)er purposes? All of t)e surrounin fiels &ontain lare a&&umulations of very sour soil 11-1;S A(" =it) 6?5-; per&en t sulp)ur7? Oil at Fayara it self )as an A(" ravity of 15S: by far t)e lo=est amon t)e ten fiels offere at "raqs 121> 0assiriya) Oilfiel an Refinery to be Offere as ,inle !ontra&t: Ira' Business *e&s: 31 Auust 2>12? 1211 0asiriya) fiel to bein prou&tion in "raq: Arabian 0il and as: 2> une 2>>1> 1213 "RAF Anolas ,onanol sin "raqi oilfiel eals: I/*: 2; anuary 2>1>? 1214 *uo %ye ,onanols "raqi Assets: Ira' )nergy: 2> uly 2>1>? 1215 "raq oil &ontra&t oes to Anolas ,onanol: BBC: 3> *e&ember 2>>11? 121 ,onanol =ins oil eals in "raqs ris#iest reion: !euters: 12 *e&ember 2>>
2><
se&on biin roun? 121;
Contract ne5otiations "n *e&ember 2>><: t)e fiel =as a=are by t)e "raqi overnment to Anolan ,onanol in t)e se&on biin roun: =)en t)e &ompany =as t)e sole bier for t)e &ontra&t?121< ,onanol sine a eal =it) t)e "raqi overnmen t on t)e 26 anuary 2>1> to ta#e a 5 per&ent sta#e in a venture to e'ploit t)e Fayara fiel? +ner t)e terms of t)e eal: ,onanol re&eive a remuneration fee of G5 per barrel an )as sai t)at it =oul invest +, G2 billion at t)e fiel? A&&orin to !euters: t)e oil &ompany &oul start re&overin &osts on&e prou&tion levels )it 3>:>>> barrels per ay bp7?122> T)e remuneration fee a&&epte =as amon t)e )i)est pai to any of t)e oil firms t)at =on &ontra&ts at tener: refle&tin t)e se&urity ris#s in t)e reion an t)e relatively lo= quality of t)e oil at t)e site?1221 Oriinally: t)e firm )a reje&te &uttin its bi fee of G12?5> per barrel but =on t)e eal after revisin estimates t)at e'&lue t)e &ost of fa&ilities to li)ten t)e )eavy oil: a&&orin to a senior ,onanol offi&ial? T)e &onsortium is &ommitte uner t)e areement to rea&)in a prou&tion plateau of 12>:>>> bp: an )olin it at t)at level for nine years?1222
Rumaila Oil Field OilReserves
1?billionbarrels
Oil (rou&tion
1?35million bp 2>127
1223 1224
*is&overe
1<531223
o&ation
Basra:,out)?
(rin&ipal (artners
B( 3;V7: !0(! 3V 71225
,e&onary (artners
,out) Oil !ompany 25V7
Rumaila: toet)er =it) t)e nort)ern superiant ir#u# fiel: )ave )istori&ally mae 1226
up most of "raqs oil prou&tion? : an as of 2>12 prou&tion at Rumaila mae up for 121; "RAF - T)e /ain $iels "n T)e 0ort): 4ree Library: retrieve 12 *e&ember 2>11? 121< "raq fails to a=ar &ontra&t for Fayara oilfiel: Allrroya: 12 *e&ember 2>> $A!TBOZ-Oil eals bet=een "raq an lobal majors: !euters: 26 $ebruary 2>1>? 1221 *uo %ye ,onanols "raqi Assets: Ira' )nergy: 2> uly 2>1>? 1222 ,onanol =ins oil eals in "raqs ris#iest reion: !euters: 12 *e&ember 2>>11? 1224 +(*AT% 2-B( proposes &uts to "raqs Rumaila taret-sour&es: !euters: 13 *e&ember 2>12? 1225 B( an !0(! to *evelop "raqs ,uper-.iant Rumaila $iel: BP: 3 0ovember 2>>
21>
more t)an a t)ir of "raqs total &rue output? 122 (rior to 2>>< Rumaila =as seen as t=o &ontra&t areas: Rumaila 0ort) an Rumaila ,out): but in t)e 2>>< biin rouns t)ey =ere bunle toet)er into one asset?122; T)e fiel is lo&ate in t)e Basra reion of sout)ern "raq: about 2> miles from t)e u=aiti borer? *is&overe in 1<53 urin an e'peition by Britis) (etroleum : it =as nationalise by ,aam Cussein an subsequently be&ame "raqs &)ief sour&e of revenue? Rumaila is estimate to &ontain appro'imately 15 per&ent of all "raqi oil reserves: an as of 2>11 t)e fiel a&&ounte for 4> per&ent of t)e &ountrys oil prou&tion?122< Rumailas 1? billion barrels of proven reserves are sai to be sittin less t)an ;:>>> feet belo= t)e surfa&e of t)e eart): ma#in t)em an easy taret for rillin?122< T)e oil at t)e site is s=eet lo= in sulp)ur7 an aroun 34SA(" .ravity? 123>
Contract ne5otiations T=o &onsortia bi for t)e Rumaila evelopment in t)e first li&ensin roun in 2>><: one le by %''on/obil an t)e ot)er by B(? T)e /inistry of Oil announ&e t)at t)e %''on/obil roup )a oriinally s&ore more points in t)e evaluation t)an t)e B( roup: but t)at bot) roups =ere above t)e ma'imum remuneration fee of G2 a barrel set by t)e /inistry? %''on e&li ne t)e offer to meet t)e ma'imum fee but B( a&&ep te an t)us =on t)e &ontra&t? T)e eal in&lue a sinature bonus of +, G5>> million: =)i&) =as intene to be a soft loan repayable over five years?1231 T)e !0(! per&entae of o=ners)ip in t)e &onsortium appears to )ave sinifi&antly in&rease bet=een t)e mi-2>>< bi an =)en t)e eal =as sine in 0ovember? A une 2>>< press release announ&e t)at B( )el a 66?6 per&ent sta#e an !0(! 33?33 per&ent of t)e international &omponent of t)e bi? 1231 On&e t)e 25 per&ent involvement of t)e ,out) Oil !ompany ,O!7 =as ta#en into a&&ount t)e sta#es =or# out as 5> per&ent to B( an 25 per&ent ea&) to !0(! an t)e ,O!? Co=ever offi&ial announ&ements t)at follo=e ini&ate t)at t)e split =as 3; per&ent to B(: 3 per&ent to !0(! an 25 per &ent to t)e "raqi state? T)e B(-le &onsortium offere to ta#e prou&tion to 2?;5 million barrels per ay bp7: lo=er t)an t)e 3?1 million bp offere by t)e %''on/obil-le &onsortium? 1231 Co=ever in *e&ember 2>12 B( =as in tal#s =it) t)e overnment to &ut t)is prou&tion taret to bet=een 1?; million an 2?2 million bp: on t)e ba&# of problems provo#e by aein infrastru&ture: re tape an a la&# of &lear oil leislation?1232
Licensing and Contracts %irectorate: 3> une 2>>
122 B( see#s &ontra&t revamp on "raq oilfiel: 4inancial /imes: 16 *e&ember 2>12? 122; B(: !0(! to rill =ells to boost Rumaila output: Bloomberg: 25 April 2>1>? 122< Ci)s An o=s $or "raqMs Rumaila Oil $iel: Commodities Universe: 2 O&tober 2>11? 123> B( in Rumaila: BP: 16 $ebruary 2>1>? 1231 (etroleum !ontra&ts an i&ensin *ire&torate: /inistry of Oil : press release une 3>: 2>>12?
211
Production and e#ports A&&orin to a B( press release: t)e Rumaila $iel Operatin Oranisation ROO7 =ill manae t)e re)abilitation an e'pansion proje&t at t)e fiel? ROO =as to be staffe mainly by employees from t)e ,O! an &ontain a small number of te&)ni&al e'perts an manaers from B( an !0(!?1233 Over t)e &ourse of 2>1> B( an !0(! rille only 41 out of t)e > =ells oriinally planne?1234 Co=ever t)e eneral manaer of t)e ROO state at a &onferen&e in 2>11 t)at t)ebarrels &onsortium =asbp7: plannin to in&rease prou&tion aroun 1> per&ent: 13>:>>> per ay at Rumalia in 2>12? T)is =as by )ope to boost output or to 1235 aroun 1?43 million bp? Co=ever by t)e en of 2>12 t)e fiel =as prou&in only aroun 1?35 million bp?1232 T)rou) 2>11 prou&tion at t)e fiel suffere a number of setba&#s? "n ,eptember 2>11 an e'plosion o&&urre: injurin at least 15 people an resulte in a temporary rop in prou&tion =)i&) =as promptly resume after repairs? A furt)er e'plosion )it Rumaila in O&tober: sai to be a bombin taretin pipeline net=or#s? T)ree ays later anot)er e'plosion o&&urre =)en a pile of mines e'ploe prematurely =)ile bein ispose of: #illin t=o army offi&ers an four eminers? 1236
%iba 0as Field %stimate.asin(la&e .asin(rou&tion
1?1t&
f123
na
*is&overe
1<6;123;
o&ation
Basraovernorate:,out)?
(rin&ipal (artners
u=ait %nery !ompany 45V7
,e&onary (artners
T(AO 3>V7: /aysan Oil !ompany 25V7123<
123<
T)e ,iba as fiel is situate t)e sout)ern Basra overnorate: some 3> #ilometres #m7 sout)-east of Basra &ity? T)e fiel is appro'imately 21 #m lon an 6-13 #m =ie? 124>
1233 B( an !0(! to *evelop "raqs ,uper-.iant Rumaila $iel: BP: 3 0ovember 2>>11 1235 "raq Aims to +p Rumaila Oilfiel Output by 1> (&t: Ira' )nergy: 1; 0ovember 2>11? 1236 Ci)s An o=s $or "raqMs Rumaila Oil $iel: Commodities Universe: 2 O&tober 2>11? 123 u=ait %nery: T(AO: aE/unai.aE .et "raq .as A=ars: Bloomberg: 2> O&tober 2>1>? 123; "ran-"O/ - ,iba .as $iel: )nergy "orld: retrieve 12 *e&ember 2>11? 123< "raq-,iba: +u&ait )nergy Com1any: retrieve 12 *e&ember 2>11? 124> ,iba: Ira' )nergy: retrieve 12 *e&ember 2>11?
212
Contract ne5otiations At "raqs t)ir post-=ar li&ensin roun in 2>1>: t)e ,iba &ontra&t area attra&te a total of t=o bis from t)ree &ompanies? T)e =innin bi &ame from a &onsortium of u=ait %nery !ompany an Tur#is) T(AO: =)o propose a remuneration fee of G?5> per barrel of oil equivalent boe7 an a prou&tion plateau of 1>> million stanar &ubi& feet //s&f7 per ay? T)ey outbi an offer from aEa#)stans aE/unay.as: =)o propose a remuneration fee of G16 per boe? 1241 T(AO tol press in une 2>11 t)at t)e t=o partners e'pe&te to invest +, G1 billion in t)e fiel?1242 +ner t)e terms of t)e &ontra&t: =)i&) =ill last for 2> years: u=ait %nery =ill be t)e operator at ,iba =it) a 45 per&ent s)are in t)e venture? T(AO )ols a 3> per&ent interest an t)e remainin 25 per&ent is )el by t)e state-o=ne /aysan Oil !ompany /O!7?1243 u=ait %nery !)airman /anssour Abou#)amseen referre to t)e eal as La sinifi&ant milestone for u=ait %neryK an t)e Arab /imes es&ribe t)e eal as Ias politi&ally symboli& as it =as a business &oup?I1244
Production and e#port "n Auust 2>12 "raqs Oil /inistry sine a &ontra&t =it) u=ait %nery to &arry out a seismi& survey at t)e ,iba fiel? 1245 As of *e&ember 2>12 t)e ,iba fiel =as still a=aitin evelopment?1243
-est
;?billionbarrels
1246
Oil(rou&tion
4>>:>>>bpO&t2>12 7124
*is&overe
1<3
o&ation
Basra overnorate: ,out)-east?
(rin&ipal(artners
%''on/obil6>V 7124;
,e&onary (artners
,)ell 15V7: Oil %'ploration !ompany 25V7124<
1241 "raqMs T)ir (etroleum i&ensin Roun,iba !ontra&t Area J Biin Results: (inistry of 0il Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>1>? 1242 +(*AT% 1-"raq to sin /ansuriya): ,iba as eals une 5: !euters: 1 une 2>11? 1243 "raq-,iba: +u&ait )nergy Com1any: retrieve 12 *e&ember 2>11? 1244 $uture .as %'ports $rom "raq $iels (ossible Aviser: Arab /imes: retrieve 12 *e&ember 2>11? 1245 m: Ira' Business *e&s: retrieve 12 *e&ember 2>11? 1246 %''on ups oil taret for "raqs est Furna ()ase 1: !euters: 2; 0ovember 2>1>? 124 %''on see#s to quit flas)ip "raq oil proje&t: !euters: 1; O&tober 2>12? 124; "raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s: James Baker III Institute for Public Policy, !ice University: uly 2>11?
213
T)e super iant est Furna oil fiel in sout)ern "raq is lo&ate in Basra overnorate? T)e fiel &omprises of t=o separate li&ense areas: ()as e 1 an ()ase 2: efine by t)e %up)rates river =)i&) runs =est-east a&ross t)e &entre of t)e fiel?125> T)e est Furna fiel is lo&ate aroun 5> #ilometres #m7 nort)-=est of t)e &ity of Basra? Overlappin t)e nort)ern ee of t)e Rumaila fiel: est Furna &an be reare eoloi&ally as a stru&tural e'tension of 0ort) Rumaila: but =as esinate a separate fiel for non-te&) ni&al reasons? "t is &onsiere a separate asset for evelop ment?1251
Contract ne5otiations est Furna ()ase 1 =as a=are to a &onsortium le by %''on/obil in 0ovember 2>><: several mont)s after t)e overnment )a e&line to a=ar t)e &ontra&t area to any of t)e bis re&eive urin t)e first roun of &ompetitive biin? 1252 At t)e oriinal offerin in uly 2>>< t)e bis spe&ifie a remuneration fee in e'&ess of t)e ma'imum fee of G1?<> set by t)e /inistry of Oil? T)e %''on-le &onsortium propose a remuneration fee of G4: =)i&) =as t)en revise to G3?> as part of an aitional bi: =)i&) =as also turne o=n?1251 Co=ever later in t)e year an %''on/obil-le &onsortium finally entere into a t=enty-year venture to evelop t)e fiel? +ner t)e eal: t)e sta#es =ere split as follo=s %''on/obil 6> per&ent7: ,)ell 15 per&ent7 an t)e "raqi state 25 per&ent7? 1253 +ner t)e &ontra&t: t)e &ompanies =ere to be pai a fee of G1?<> a barrel for t)e oil t)ey prou&e at t)e site? Analyst ,amuel !isEu# &ommente t)at t)e eal =as Ia bi loss for u#oilK =)i&) i =or# on est Furna =)en ,aam Cussein rule "raq an =)i&) )a Ireally been eyein t)is fiel?K 1252 T)e &onsortium sine t)e final &ontra&t =it) t)e /inistry of Oil on t)e 25 anuary 2>1>?124<
Chan5e in o$nership structure As of *e&ember 2>12 %''on/obil =as in t)e pro&ess of sellin its sta#e in t)e fiel: apparently in response to pressure &omin from Ba)a in t)e =a#e of t)e &ontra&ts t)e &ompany sine =it) t)e uristan Reional .overnment R.7 in t)e nort)? A&&orin to *ere# Bro=er of t)e Petroleum )conomist: Russian u#oil an !)inese !0(!: bot) of =)i&) )ave sta#es in ot)er fiels in t)e sout): =ere t)e front-runners in t)e &ompetition to ta#e over t)e asset? *eputy (rime /inister Cussein ,)a)ristani sai t)at )e =ante t)e eal to be &omplete by t)e en of 2>12? 1254 124< "raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s: James Baker III Institute for Public Policy, !ice University: uly 2>11? 125> est Furna ()ase 27: Ira' )nergy: retrieve 13 *e&ember 2>1>? 1251 "raqMs $irst (etroleum i&ensin Roun: est Furna !ontra&t Area J Biin Results: Petroleum Contracts and Licensing %irectorate: 2 uly 2>>>11? 1254 ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12?
214
Production and e#port "n 0ovember 2>1> an "raqi oil offi&ial tol !euters t)at %''on/obil an its partners )a raise t)eir prou&tion plateau at est Furna 1 to 2?;25 million bp from t)e oriinal plateau taret of 2?325 bp on sinin7 after ain ne= reserves to t)e area &overe by t)eir oriinal evelopment &ontra&t? Ce note t)at uner a re)abilitation plan for t)e fiel: t)e &onsortium =as plannin to boost output from t)e fiel to aroun 5>:>>> bp by 2>13: from 2>1> levels of 23>:>>>-24>:>>> bp? T)is =oul be a&)ieve by rillin ne= =ells: over)aulin e'istin =ells an implementin a series of =ater inje&tion proje&ts?1255 As of O&tober 2>12 output =as at aroun 4>>:>>> bp? 1256 Co=ever inustry analysts quote by t)e Petroleum )conomist arue t)at ue to isappointin prou&tion levels an t)e lo= remuneration fee of G1?<> per barrel: est Furna 1 turne into a lossma#er for %''on/obil? T)e &ompanys priority =as to ramp up prou&tion qui&#ly an &)eaply: =)i&) i not )appen? $urt)ermore: payments from t)e "raqi overnment for oil prou&e =ere =ere elaye?1254
-est
13billionbarrels
125
na 1<3 Basra overnorate: ,out)-east? u#oil56?25V7
125;
,tatoil 1;?5V7: ,out) Oil !ompany 25V7125;
est Furna-2 is t)e se&on portion of t)e super iant est Furna fiel mae available for li&ensin? 125< T)e fiel =as is&overe by ,oviet eoloists in 1<3 an as of 2>12 =as t)e se&on biest unevelope fiel in t)e =orl =it) aroun 13 billion barrels of re&overable oil reserves?125
Contract ne5otiations
()ase 2 of t)e est Furna fiel =as put up for biin at "raqs se&on li&ensin roun of 2>>1>? 1256 %''on see#s to quit flas)ip "raq oil proje&t: !euters: 1; O&tober 2>12? 125 u#oil to invest G4 bln in est Furna-2 in 2>13: Interfa5: < O&tober 2>12? 125; "raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s: James Baker Institute for Public Policy, !ice University: uly 2>11? 125< est Furna ()ase 27: Ira' )nergy: retrieve 13 *e&ember 2>1>?
215
=)i&) a&&orin to a lea#e +, iplomati& &able attra&te stunninly lo= pri&es? T)e remuneration fee a&&epte for t)e =innin bi by a u#oil-le &onsortium =as G1?15 per barrel an t)e aree taret prou&tion plateau =as 1?; million barrels per ay bp7? T)e ot)er &onsortia =)i&) bi for t)e fiel =ere le by /alaysian (etronas an $ren&) Total: proposin remuneration fees of G1?25 an _1?2 respe&tively?126> T)e remuneration fee =oul be payable on&e t)e &ontra&t area a&)ieve a prou&tion level of 12>:>>> bp? T)e plateau prou&tion taret =as to be maintaine for 13 years an a sinature bonus of +, G15> million =as also be payable? 1261 +ner t)e terms of t)e &ontra&t: Russian u#oil =oul lea t)e &onsortium =it) a 56?25 per&ent sta#e: ,tatoil =oul )ol a an 1;?5 per&ent sta#e an t)e "raqi state-o=ne ,out) Oil !ompany ,O!7 =oul )ol t)e remainin 25 per&ent?%rror Referen&e sour&e not foun
Production and e#port As of O&tober 2>12 prou&tion )a not yet beun at est Furna-2? Co=ever Anrei uEyaev: presient of u#oil Overseas: sai t)e &ompany planne to start prou&tion in late 2>13 or early 2>14 at a level of 15>:>>> bp? T)ey )ope to see prou&tion rea&) 4>>-5>>:>>> bp by t)e en of 2>14? u#oil !%O Dait Ale#perov also separately tol lo&al press t)at t)e &ompany e'pe&ts output of 1? million bp by 2>1?1262
ubair Oil Field OilReserves Oil(rou&tion *is&overe
4billionbarrel s1263 2>:>>>bp2>127
1264
1<4<
o&ation
,out)ofBasra?
(rin&ipal(artners
%ni32?;1V7
,e&onary (artners
O&&iental 23?44V7: oas 1;?5V7: /aysan Oil !ompany 25V7
@ubair lies in t)e sout)-eas t of "raq: aroun 2> #ilometre s #m7 sout)-=est of t)e &ity of Basra: an is one of "raqs larest fiels? 1265 T)e fiel is t)ou) to )ol aroun 4 billion barrels of proven reserves?1266
126> Oil ,tampee "raq:s 2n Bi Roun Results: "ikiLeaks: 14 *e&ember 2>>>13: Platts: 1> O&tober 2>12? 1263 /ubaala plans to ain part of O'y s)are in @ubair: U1stream 0nline: 3> O&tober 2>>12? 1265 @ubair: Ira' )nergy: retrieve 12 *e&ember 2>11? 1266 "raqs @ubair-%ni eal effe&tive T)ursay-offi&ial: !euters: 1; $ebruary 2>1>?
216
Contract ne5otiations $ollo= "raqs li&ensin rouns of 2>><: an %ni-le &onsortium stru&# a eal =it) t)e "raqi overnment for t)e evelopment of t)e @ubair fiel? +ner t)e &ontra&t: %ni )ols a 32?;1 per&ent sta#e: O&&iental (etroleum 23?44 per&ent: oas 1;?5 per&ent an state-o=ne /aysan Oil !ompany /O!7 a furt)er 25 per&ent?126 A&&orin to t)e &ontra&t: t)e &onsortium s)oul boost t)e fiels prou&tio n by 1> per&ent from its startin level of aroun 2>>:>>> barrel s per ay bp7: an =ill t)en earn G2 for ea&) e'tra barrel prou&e ?126; T)e &onsortium initially as#e for G4?;> a barrel prou&e but later revise its bi to G2 after B( a&&epte t)e same amount for t)e Rumaila fiel? 126< T)e &onsortium also aree to pay t)e "raqi Oil /inistry +, G3>> million as a refunable five-year loan: instea of payin a sinature bonus?12>
Production and e#port )en %ni too# over t)e @ubair fiel it =as prou&in 1<5:>>> bp? Co=ever a&&orin to %nis fiels e'pansion proramme: prou&tion is e'pe&te to rea&) a plateau level of 1?125 million barrels per ay bp7 by 2>1? 121 A&&orin to %ni !%O (aolo ,&aroni in 2>12: t)e &onsortium to ate )a investe 4-5 billion euros into t)e proje&t rou)ly +, G5?2 - 6?5 billion7: but t)e roup e'pe&ts to invest a total of G1; billion in t)e proje&t?1264
Fields awarded y "RG
9aq 9aq Oil Field OilReserves Oil(rou&tion
64millionbarrel s122 1>5:>>>bp2>127
123
o&ation
uristanreion
(artners
.enel %nery 55V7: Aa' (etroleum 45V7
126 %ni: O&&iental (etroleum an O.A, sin t)e te&)ni&al servi&e &ontra&t =it) "raqs ,out) Oil !ompany an /issan Oil !ompany to reevelop @ubair fiel: )ni: 22 anuary 2>1> 126; %ni !onsortium to Reevelop @ubair $iel in "raq: !ig#one: 22 anuary 2>1>? 126< %ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel: /he "all Street Journal: 25 anuary 2>1>? 12> %ni ,?p?A?: O&&iental (etroleum !orporation an orea .as !orporation ,in $inal *eal $or @ubair Oil $iel-*: !euters: 22 anuary 2>1>? 121 %ni a=are t)e li&ense for t)e @ubair iant fiel in "raq: )ni: 13 O&tober 2>>12? 123 uristan Taq Taq oil e'ports rise a)ea of ,ept ealine: !euters: 6 ,eptember 2>12?
21
A(",pe&ifi&ity
4;
T)e Taq Taq fiel: lyin in t)e @aros basin =it)in t)e semi-autonomous uristan reion of "raq: )as ross 2( reserves of 64 million barrels? Co=ever .enel %nery believes t)at t)e fiel &oul potentially )ol one billion barrels of oil? T)e li&ense area is lo&ate 6> #ilometres #m7 nort)-east of t)e ir#u# oil fiel an aja&ent to t)e &ity of ir#u#: ;5 #m sout)-east of t)e &ity of %rbil an 12> #m nort)=est of t)e &ity of ,ulaymaniya)? "ts ross area is appro'imately <51 square #m?122 T)rou) =ellsisputes at t)e site )a tot)e be sporai&ally s)ut-o=n as e'portsR.7 stoppe a result of2>12 e'port bet=een uristan Reional .overnment anas Ba)a?123
Contract ne5otiations "n 2>>5 a prou&tion s)arin &ontra&t (,!7 =as sine for t)e evelopment of t)e Taq Taq fiel bet=een t)e R.: .enel %nery an Aa' (etroleum a subsiiary of ,inope&7? .enel )ols a 55 per&ent sta#e in t)e &ontra&t an Aa' 45 per&ent? 124
Production and e#port T)e &ompanies operatin at Taq Taq bean prou&in oil in 2>>< at an initial level of 4>:>>> barrels per ay bp7?125 A&&orin to !euters: as of ,eptember 2>12 t)e fiel =as pumpin 1>5:>>> barrels per ay bp7: =it) 55:>>> bp elivere by tan#er tru&# to )urmala for e'port via t)e overnment-&ontrolle ir#u#-!ey)an pipeline? Of t)e remainer: aroun 35:>>> bp =as tru&#e to t)e nearby BaEian refinery an t)e rest store? Cea of operations at t)e site: oe ,tein: sai e'ports &oul be booste to >:>>> bp if neee? 123 Co=ever .enels offi&ial =ebsite states t)e prou&tion &apa&ity of t)e fiel is 12>:>>> bp an t)at t)e &ompany )ope to in&rease t)is to 2>>:>>> bp by 2>14? A&&orin to .enel: t)e main obsta&le to in&reasin t)e level of prou&tion in 2>12 =as t)e infrastru&ture bottlene&# an &urrent tru&# transportation options: )o=ever notin t)at t)e R. =as plannin a ne= pipeline to transport prou&e oil to t)e Tur#is) borer?126 Taq Taq prou&es =)at )as been ubbe &)ampane quality &rue: ue to its very 12
li)t A(" ravity of 4;S?
124 ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12? 125 "raqs Taq Taq oil fiel to ro= as it &omes online: !euters: 31 /ay 2>>12? 12 uristan Taq Taq oil e'ports rise a)ea of ,ept ealine: !euters: 6 ,eptember 2>12?
21;
9a$=e Oil Field OilReserves
34millionbarrels2(
Oil(rou&tion
1>>:>>>bp2>127
12; 12<
*is&overe
2>>6
o&ation
uristanreion
(artners
*0O 55V7: .enel%nery25V7
T)e Ta=#e fiel is lo&ate in t)e semi-autonomous uristan reion: &lose to "raqs borer =it) Tur#ey? T)e fiel =as is&overe in 2>>6 by 0or=eian *0O an )as ross 2( reserves of 34 million barrels? T)e &ontra&t area e'tens over 63 square #m?12;
Contract ne5otiations *0O oriinally entere into a prou&tion s)arin &ontra&t (,!7 for t)e *o)u# area in 2>>4: of =)i&) t)e Ta=#e fiel =as a part? T)is oriinal (,! =as amene in 2>>; an &ause t)e oriinal li&ense area to be split into t=o parts: =)i&) is )o= t)e Ta=#e li&ensin area &ame into bein?12; Co=ever in 2>1> a (,! =as sine bet=een t)e uristan Reional .overnment R.7: .enel %nery an *0O? .enel )ols a 25 per&ent sta#e in t)e &ontra&t an *0O t)e remainin 55 per&ent? 12;>
Production and e#port At t)e en of 2>11 Ta=#e &oul &ount 13 prou&in =ells: an 1 prou&in =ells by t)e en of 2>12? .enel )as a taret prou&tion &apa&ity of 2>>:>>> barrels per ay bp7 for Ta=#e by 2>14?12; "n 0ovember 2>12 *0O offi&ials announ&e t)at its prou&tion at Ta=#e )a e'&eee 1>>:>>> bp for t)e first time?12<
#isputed fields
8ir=u= Oil Field OilReserves
;?billionbarrels
12;1
12; Ta=#e (,!: enel )nergy: retrieve 14 *e&ember 2>12? 12< *0O prou&tion e'&ees 1>> t)ousan barrels in Ta=#e fiel in uristan: Shafa' *e&s: 15 0ovember 2>12? 12;> ill "raq be t)e ne't oil superpo=erH: Petroleum )conomist: 12 *e&ember 2>12?
21<
Oil(rou&tion *is&overe $irst(rou&e o&ation
2;>:>>>bp2>127
12;2
1<2 1<34 ir#u#:0ort)?
ir#u# is an oil fiel at Baba .urur ,t? BlaEe in uris)7: one of "raqs olest prou&in fiels: is lo&ate in t)e overnorate of ir#u# in nort)ern "raq? "t =as is&overe in 1<2 an brou)t into use by t)e "raq (etroleum !ompany "(!7 in 1<34? "t =as &onsiere t)e larest oil fiel in t)e =orl for aroun 2> years until ,aui Arabias .)a=ar fiel &ame online in t)e 1<5>s 12;3: an forms t)e basis of nort)ern "raqi oil prou&tion =it) nearly < billion barrels of proven remainin oil reserves as of 2>>6?12;1 "n t)e absen&e of eals &on&lue =it) international &ompanies: as of *e&ember 2>12 prou&tion at t)e fiel =as bein &arrie out by t)e 0ort) Oil !ompany 0O!7 on be)alf of t)e "raqi /inistry of Oil?12;4
Contract ne5otiations $ollo=in t)e invasion an o&&upation of "raq in 2>>3: ir#u# =as amon t)e ei)t fiels on offer in "raqs first post-=ar li&ensin roun in 2>>>:>>> barrels per ay bp7? A &onsortium le by ,)ell offere a prou&tion plateau of ;25:>>> bp: )o=ever t)eir offer =as e&line be&ause t)e Oil /inistry &onsiere t)e sueste remuneration fee of G?;< per barrel to be too )i): &ompare to t)eir o=n ma'imum fee set at G2 per barrel? A senior "raqi offi&ial reporte in O&tober 2>>< t)at t)e /inistry =oul meet ,)ell to is&uss terms furt)er? 12;6 0o eal is #no=n to )ave resulte from t)ese furt)er &onta&ts? "n 2>12 !euters reporte t)at Britis) major B( =as &onsierin a proje&t aime at revivin e&linin prou&tion at ir#u#? T)is =oul ma#e B( t)e first forein &ompany to evelop t)e ir#u# eposit? Co=ever B( mae no &omment on t)e reports? Oil fiel servi&e &ompanies ,&)lumberer an Ba#er Cu)es =ere also reporte to be intereste in t)e re-evelopment proje&t?12;2
12;1 "raq Oil (rou&tion ir#u# Oil $iel: 0il and as Articles: 21 /ar&) 2>>6? 12;2 "raq =ants B( to revive nort)ern ir#u# oilfiel: !euters: 1 April 2>12? 12;3 T)e uris) battle for ir#u#: "nternational Resour&e ournal 2>>< 12;4 "raq - %'tra&tive "nustries: !evenue "atch: retrieve 14 *e&ember 2>12? 12;5 ,)ell Reneotiates =it) "raq for ir#u# $iel Ri)ts: !ig#one 16 O&tober 2>>><
22>
Production and e#port By 2>12 prou&tion at t)e fiel )a slumpe to 2;>:>>> bp: from a level of <>>:>>> bp in 2>>1 prior to t)e 2>>3 invasion? "raqi offi&ials in 2>12 =ere loo#in to invite an international oil &ompany "O!7 to boost prou&tion at t)e fiel: in orer to raise &apa&ity to 6>>:>>> bp by 2>1?12;2 On&e oil is e'tra&te from t)e roun at ir#u#: it is sent via t)e ir#u#-!ey)an Oil (ipeline to t)e Tur#is) port &ity of !ey)an: from =)ere it is s)ippe aroun t)e 12;
=orl?
Dispute over o$nership T)e ir#u# fiel lies near t)e &ity of ir#u#: a &ity lon ispute bet=een t)e &entral overnment in Ba)a an t)e uris) Reional .overnment R.7 base in %rbil? Cistori&ally t)is area of "raq =as populate by ,)iite urs: =)o oriinally o&&upie a lare part of t)e Ottoman %mpire? ,in&e t)e fall of ,aam Cussein: many urs feel t)at ir#u# s)oul be returne to t)em?12; "n une 2>>; t)ere =as a brief arme stanoff bet=een t)e for&es of t)e R. an "raqs &entral overnment over one of t)e areas of ir#u# fiel: t)e )urmala *ome? Oil /inister Cussein ,)a)ristani sai t)e Ba)a overnment se&ure t)e area after uris) pes)mera briefly stoppe t)e Oil /inistry from prou&in out of t)e fiel: at t)e time yielin about 3>:>>> bp? 12;; R. offi&ials &laim t)eir ri)t to manae t)e )urmala *ome on t)e rouns t)at it falls =it)in %rbil overnorate: =)i&) is an unispute part of t)e R.? "raqs &entral overnment bases its o=n &laim on t)e fa&t t)at t)e 2>>5 !onstitution rants t)e ri)t to manae fiels =)i&) are alreay in prou&tion to t)e feeral level of overnment?12;;
>3? ir#u#s ravity: for instan&e: e&line to aroun 32S-33S A(": =)ile sulp)ur &ontent rose above 2 per&ent? ,ome analysts believe t)at poor reservoir manaement pra&ti&es urin t)e ,aam Cussein in&luin reinje&tion e'&ess fuel oil: refineryir#u#? resiue an asstrippe years oil7 may )ave seriously: evenofpermanently: amae Amon ot)er problems: fuel oil reinje&tion )as in&rease oil vis&osity at ir#u#: ma#in it more iffi&ult an e'pensive to et oil out of t)e roun?12;<
12; ir#u# Oil $iel- A Cistory of !onfli&t: Commodities Universe: 2; O&tober 2>11? 12;; $uture of ir#u# $iel +n#no=n: %nery *aily: 1 une 2>>; 12;< "raq Oil (rou&tion ir#u# Oil $iel: 0il and as Articles: 21 /ar&) 2>>6?
221
222
9ransparency of Contracts T)e ra=in up of &ontra&ts is ne&essary in t)e e'tra&tive inustries in orer to ive pre&ise etail an leal spe&ifi&ity to t)e obliations of a state an &ompany or &onsortium of &ompanies involve in a proje&t? /any &ontra&ts establis ) important ta': en vironment an investment provisions =it) major impli&ations for a prou&in &oun try?12<> T)e 2>>< !ontra&ts !onfiential report from Revenue at&) "nstitute R"7 notes t)at in re&ent years t)ere )as been a ro=in movement &allin for reater &ontra&t transparen&y: =it)in an beyon t)e e'tra&tives se&tor? "nternational jurispruen&e on t)e ri)t to information: =)i&) in&reasinly supports t)e is&losure of areements: as =ell as omesti& freeom of information $O"7 la=s a&ross t)e =orl: are trens =)i&) offer important tools of arument an pro&eure in brea#in t)e barrier to is&losure =)ile balan&in ot)er leitimate interests?12<>
,enefits A&&orin to "nilab A)maov of t)e (ubli& $inan&e /onitorin !enter in AEerbaijan: it is =iely #no=n t)at a transparent &ompany-state relations)ip is a #ey fa&tor for resour&e-ri&) &ountries see#in effi&ient manaement of t)eir natural resour&es to benefit &urrent an future enerations? Ce arues t)at &ontra&t transparen&y is ne&essary be&ause an outsie observer =)o =is)es to &ompare similar &ontra&ts a&ross or =it)in &ountries nees a =ay to etermine t)e e'tent to =)i&) it ta#es so&ietys interests into a&&ount? To jue t)e fairness of t)ese &ontra&ts: one must first )ave a&&ess to t)em?12<1 (roponents of &ontra&t transparen&y arue t)at t)e publis)in an s&rutiny of &ontra&ts allo=s overnments to be )el a&&ountable for all &ontra&ts t)ey enter into? "n t)eir report onbetter t)e issue: Revenue at&) arue I&ontra&t transparen&y &riti&al to aressin resour&e manaement an t)at brinin &ontra&t stability toisan in12<> ustry t)at sees its &ontra&ts reneotiate more t)an any ot)er?I
12<> !ontra&ts !onfiential %nin ,e&ret *eals in t)e %'tra&tives "nustries: !evenue "atch: 2>>12?
223
Opposition and counter.ar5uments One of t)e most &ommonly aire aruments aainst transparen &y of &ontra&ts is t)at t)is openness impairs a &ompanys &ommer&ial interests an =ea#ens its &ompetitive position? !onXentiality &lauses are a &ommon an leitimate feature in &ontra&ts bet=een private parties an are use to prevent information from &omin into t)e )ans of publi& roups?12<2 T)is assertion is &ontrai&te by proponents of transparen&y su&) as "nilab A)maov: =)o arues in any &ase arean a=are of all or almost on all &ontra&ts? .iven t)et)at )i)inustry level ofspe&ialists information te&)noloy &lose &ooperation joint proje&ts in toays oil inustry: it is unrealisti& to maintain trae se&rets as t)ey e'iste in t)e 1<;>s an 1<<>s? A&&orin to A)maov: pra&ti&e )as s)o=n t)at t)e &ommer&ial interests of parties involve in oil an as &ontra&ts o not suffer neatively from t)e e'posure: but on t)e &ontrary are able to benefit from a baly neee en)an&ement of t)eir publi& imae?12<3 ,usan /aples: in )er report for R": suests t)at one reason =)y &ompanies are not eaer to embra&e &ontra&t transparen&y is t)at t)e information asymmetry bet=een ifferent parties resultin from se&re&y arranements allo=s &ertain &ompanies an avantae: enablin t)em to neotiate more favourable &ommer&ial eals? /aples amits t)at t)e aruments in support of &ontra&t se&re&y are not neliible aruments: but t)ey overloo# t)e spe&ial obliations of overnments an t)e emo&rati& ri)t to information?12<2
9he +I9I and contract transparency As of 2>11: t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7 i not ma#e emans on parti&ipatin &ountries rearin &ontra&t transparen&y? T)ere )ave been &alls from transparen&y a&tivists for t)e initiative to =ien its remit to in&lue &ontra&t transparen&y? Co=ever %"T" representatives arue t)at it is important t)at t)e %"T" retains pre&isely t)is ti)t fo&us in orer to foster =ier &)ane an provo#e ebate on broaer overnan&e issues?12<4
Natural Resource Charter NRC! T)e 0atural Resour&e !)arter: as part of t)e resour&e transparen&y movement: is a set of prin&iples to uie overnments an so&ieties use of natural resour&es so t)ese e&onomi& opportunities result in ma'imum an sustaine returns for a &ountrys &itiEens? "t outlines tools an poli&y options esine to avoi t)e mismanaement of i12<2 !ontra&ts !onfiential %nin ,e&ret *eals in t)e %'tra&tives "nustries !evenue "atch Institute: 2>>12? 12<4 )at nees to &)ane for t)e %"T" remains relevantH )I/I: 2 O&tober 2>>
224
minis)in natural ri&)es: an ensure t)eir onoin benefits?12<5
Foundation T)e &)arter =as &on&eive by e&onomist (aul !ollier: as )e =or#e on )is boo# (lunere (lanet? Re&onisin t)e pre&eent set by t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7: t)e &)arter is an attempt to e'ten t)e prin&iples of oo overnan&e a&ross every area of natural resour&e manaement? A raft of t)e &)arter =as announ&e in $ebruary 2>>
number of a&aemi&s an t)e Revenue at&) "nstitute R"7? !olliers iea is t)at natural resour& es are #ey to t)e evelopment of many &ountrie s: parti&ularly in Afri&a? But t)e reason so many &ountries )ave suffere from t)e resour&e &urse is a series of brea#s in a &ru&ial &)ain of e&isions require to ensure effe&tive e'ploitation of resour&es t)e la&# of suffi&ient investment in t)e is&overy pro&ess: failure to impose aequate ta'ation: s)ortae of omesti& investment of revenue: an t)e nee to invest in investmentsM by builin &ivil servi&e &apa&ity to manae investment portfolios?12<
Precepts T)e &)arter is mae up of a number of pre&epts: or basi& prin&iples? T)ese are t)ou)t to be universally appli&able to all natural resour&e prou&in &ountries: in t)e same =ay as t)e +niversal *e&laration of Cuman Ri)ts? %a&) of t)e prin&iples )as a etaile e'planation an an a&&ompanyin o&ument on =ays to a&)ieve it on t)e &)arters =ebsite?12<;
Overarching issues (re&ept 1 T)e evel opment of natura l resour&es s)oul be esine to se&ure ma'imum benefit for t)e &itiEens of t)e )ost &ountry? (re&ept 2 %'tra&tive resour&es are publi& assets an e&isions aroun t)e ir e'ploitation s)oul be transparent an subje&t to informe publi& oversi)t?
Upstream issues (re&ept 3 !ompetition is a &riti&al me&)anism to se&ure value an interity? (re&ept 4 $is&al terms must be robust to &)anin &ir&umstan&es an ensure t)e &ountry ets t)e full value from its resour&es? 12<5 0atural Resour&e !)arter: !evenue "atch Institute: retrieve 15 anuary 2>13? 12<6 0e= !)arter to )elp oil-ri&) poor &ountries - laun&)e toay: *atural !esource Charter: retrieve 24 O&tober 2>11? 12< !ollier: (aul T)e (lunere (lanet )y e /ust--an Co= e !an--/anae 0ature for .lobal (rosperity: 05ford University Press: 2>1>? 12<; 0atural Resour&e !)arter J (re&epts: *atural !esource Charter: retrieve 24 O&tober 2>11?
225
(re&ept 5 0ational resour&e &ompanies s)oul be &ompetitive an &ommer&ial operations? T)ey s)oul avoi &onu&tin reulatory fun&tions or ot)er a&tivities? (re&ept 6 Resour&e proje&ts may )ave serious environmental an so&ial effe&ts =)i&) must be a&&ounte for an mitiate at all staes of t)e proje&t &y&le? (re&ept Resour&e revenues s)oul be use primarily to promote sustaine e&onomi& ro=t) t)rou) enablin an maintainin )i) levels of omesti& investment?
Downstream issues (re&ept ; %ffe&tive utilisation of resour&e revenues requires t)at omesti& e' peniture be built up an raually smoot)e to ta#e a&&ount of revenue volatility? (re&ept < .overnment s)oul use resour&e =ealt) as an opportunity to se&ure effe&tive publi& e'peniture an to in&rease t)e effi&ien&y of publi& spenin? (re&ept 1> .overnment poli&y s)oul fa&ilitate private se&tor investments in response to ne= opportunities an stru&tural &)anes asso&iate =it) resour&e =ealt)?
Global responsibility (re&ept 11 T)e )ome overnments of e'tra&tive &ompanies an international &apital &enters s)oul require an enfor&e best pra&ti&e? (re&ept 12 All e'tra&tion &ompanies s)oul follo= best pra&ti &e in &ontra&tin: operations an payments?
Institution T)e &)arter is at present a raft put toet)er by a roup of leain international s&)olars? "n /ar&) 2>1>: t)e &)arter announ&e t)at it )a an avisory boar =)i&) in&lues former presient of /e'i&o %rnest @eillo an Afri&an businessman /o "bra)im?12<<
+#tractive Industries 9ransparency Initiative +I9I! +I9I compliance !ountries see#in to a&)ieve %"T" !aniate status must meet five sin-up require12<< T)e T=elve (re&epts: *atural !esource Charter: retrieve 15 anuary 2>13?
226
ments: an for a &ountry to a&)ieve %"T" &omplian&e: it )as t=o an a )alf years to be valiate as a !ompliant &ountry? On&e a &ountry is !ompliant: t)e &ountry must unero Daliation at least every five years: or upon t)e request from t)e %"T" "nternational Boar?13>> As of anuary 2>13: 1; &ountries =ere %"T" &ompliant: namely AEerbaijan: .)ana: "raq: yryE Republi&: /auritania: /oEambique: 0ieria: (eru: Timor-este: @ambia: !entral Afri&an Republi&: iberia: /ali: /onolia: 0ier: 0or=ay: TanEania an 9emen? T)ere =ere a furt)er 1; !aniate !ountries Af)anistan: !ameroon: !)a: t)e *emo&rati&e Republi& of !ono: .uineau: ,ao Tome an (rin&ipe: t)e ,olomon "slans: Trinia an Tobao: Albania: Bur#)ina $aso: !ote "voire: .abon: .uatemala: "nonesia: aEa#)stan: !ono: ,ierra eone an Too? /aaas&ar =as temporarily suspene at t)e time?13>1
5alidation re6uirements Si4n-U3
T)e %"T" rules state t)at a &ountry applyin for !aniate status must meet t)e follo=in sin-up requirements 1? T)e overnment is require to issue an unequivo&al publi& statement of its intention to implement t)e %"T"? 2? T)e overnment is require to &ommit to =or# =it) &ivil so&iety an &ompanies on t)e implementation of t)e %"T"? 3? T)e overnment is require to appoint a senior iniviual to lea on t)e implementation of t)e %"T"? 4? T)e overnment is require to establis) a multi-sta#e)oler roup to oversee t)e implementation of t)e %"T"? 5? T)e multi-sta#e)oler roup: in &onsultation =it) #ey %"T" sta#e)olers: s)oul aree an publis) a fully &oste =or# plan: &ontainin measurable tarets: an a timetable for implementation an in&orporatin an assessment of &apa&ity &onstraints?13>2 Pre3aration
T)e overnment is require to ensure t)e enaement of &ivil so&iety in t)e pro&essN enae &ompaniesN an remove leal an reulatory obsta&les to t)e implementation of t)e %"T"? T)e multi-sta#e)oler roup is require to aree a efinition of materiality an t)e reportin templates: =)i&) efine =)at revenue streams are in&lue in &ompany an overnment is&losures? T)e oranisation appointe to prou&e t)e %"T" re&on&iliation report must be per&eive as &reible: trust=ort)y an te&)ni&ally &ompetent? T)e overnment is t)en require to ensure t)at all relevant &ompanies an overnment 13>> %"T" "mplementation: )I/I: retrieve 2 O&tober 2>11? 13>1 %"T" !ountries: )I/I: retrieve 15 anuary 2>13? 13>2 ,in +p: )I/I: retrieve 2 O&tober 2>11?
22
entities report an t)at bot) &ompany an overnment reports are base on a&&ounts auite to international stanars?13>3 %isclosure
!ompanies must &ompre)ensively is&lose all material payments in a&&oran&e =it) t)e aree reportin templates: an overnment aen&ies must &ompre)ensively is&lose all material revenues? T)e multi-sta#e)oler roup must also be &ontent t)at t)e oranisation &ontra&te to re&on&ile t)e &ompany an overnment fiures i so satisfa&torily: an t)e re&on&iler must ensure t)at t)at t)e %"T" Report is &ompre)ensive: ientifies all is&repan&ies: =)ereforpossible t)ose is&repan&ies: an =)ere 13>3 ne&essary ma#es re&ommenations remeiale'plains a&tions to be ta#en? %issemination
T)e overnment an multi-sta#e)oler roup must ensure t)at t)e %"T" Report is &ompre)ensible an publi&ly a&&essible to en&ourae t)at its finins &ontribute to publi& ebate?12;2 Revie# and 8alidation
Oil: as an minin &ompanies must support %"T" implementation: an t)e overnment an multi-sta#e)oler roup are en&ourae to ta#e steps to a&t on lessons learne: aress is&repan&ies an ensure t)at %"T" implementation is sustainable? "mplementin &ountries are require to submit Daliation reports in a&&oran&e =it) t)e ealines establis)e by t)e Boar?12;2 Retainin4 1om3liant Status
!ompliant &ountries must maintain a)eren&e to all t)e requirements liste above in orer to retain !ompliant status?12;2
$I)I criteria 1? (ubli&ation Reular publi&ation of all material oil: as an minin payments by &ompanies to overnments payments7 an all material revenues re&eive by overnments from oil: as an minin &ompanies revenues7 to a =ie auien&e in a publi&ly a&&essible: &ompre)ensive an &ompre)ensible manner? 2? Auit )ere su&) auits oapplyin not alreay e'ist: payments anstanars? revenues are t)e subje&t of a &reible: inepenent auit: international auitin 3? Re&on&iliation (ayments an revenues are re&on&ile by a &reible: inepenent aministrator: applyin international auitin stanars an =it) publi&ation of t)e aministratorMs opinion rearin t)at re&on&iliation in&luin is&repan&ies: s)oul any be ientifie?
13>3 %"T" Rules: )I/I: retrieve 2 O&tober 2>11?
22;
4? ,&ope T)is approa&) is e'tene to all &ompanies in&luin state-o=ne enterprises? 5? !ivil ,o&iety !ivil so&iety is a&tively enae as a parti&ipant in t)e esin: monitorin an evaluation of t)is pro&ess an &ontributes to=ars publi& ebate? 6? or# (lan A publi&: finan&ially sustainable =or# plan for all t)e above is evelope by t)e )ost overnment: =it) assistan&e from t)e international finan&ial institutions =)ere require: in&luin measurable tarets: a timetable for implementation: an an assessment of potential &apa&ity &onstraints?13>4
+I9I in Iraq "raq sine up to %"T" in $ebruary 2>1> an issue a raft of its first re&on&iliation re port at t)e start of 2>1213>5 "raq first announ&e its intent to implement t)e %"T" in 2>>; an *eputy /inister /r Bar)am ,ali) met =it) %"T" !)airman (eter %ien in Ba)a in O&tober 2>>; 13>6? T)e "raq %"T" "%"T"7 aun&) !onferen&e too# pla&e on <-1> anuary 2>1>: =)en (rime /inister 0ouri al-/ali#i announ&e "raqs formal &ania&y13>? T)e first "%"T" ,ta#e)oler !oun&il meetin =as )el on 22-23 ,eptember 2>1>? !ivil so&iety =as represente by several oranisations: an in 2>11 forme a &oalition roupin more t)an 4> oranisations aroun t)e %"T" initiative? On t)e 12 *e&ember 2>12 "raq =as e&lare a &ompliant &ountry by t)e %"T" Boar on t)e basis of a final valiation report release in Auust 2>12? A&&ori n to t)e offi&ial %"T" =ebsite: protra&te an iffi&ult neotiations too# pla&e bet=een t)e "%"T" an t)e uristan Reional .overnment R.7: but t)e 2>1> report=ill &over uristans oil an as prou&tion an revenues: =)i&) =ill be refle&te in a separate &)apter?13>; *espite "raqs )istory of &ollaboration =it) t)e %"T": Revenue at&) "nstitute R"7 )i)li)ts a la&# of a=areness amon &ivil so&iety: parti&ularly in t)e nort)ern uris) reion: as an obsta&le?13><
7irst Reconciliation Report8 December ./11 T)e first re&on&iliation report =as issue by "raqs %"T" ,e&retariat on t)e 23 *e&ember 2>11? "t tallie some +, G41?3 billion of re&eipts by t)e ,tate Oil /ar#etin Oranisation ,O/O7 in sales of "raqi oil to international buyers? "t initially s)o=e a is&repan&y G1?>< billion fiures reporte by ,O/O an t)ose of t)e buyin paniesofbut t)ese =erebet=een all subsequently e'plaine in follo=-up &onsultations: sai&omt)e report: prepare by (ri&e ater)ouse !ooper? 13>4 %"T" Rules: )I/I: retrieve 2 O&tober 2>11? 13>5 %nlis) "%"T" Report: )I/I: retrieve 11 anuary 2>12? 13>6 %"T" ,e&retariats "raq pae: )I/I: retrieve 11 anuary 2>12? 13> "raq oins .lobal Transparen&y %ffort: P".P: retrieve 11 anuary 2>12? 13>; "raq %"T": )I/I9, retrieve 15 anuary 2>13? 13>< Raisin %"T" A=areness Amon !,Os in "raqMs 0ort)ern uris) Area: !evenue "atch: retrieve 15 anuary 2>13?
22<
T)e report also re&on&ile t)e p)ysi&al quantities of oil sent from "raqs t=o main prou&in &ompanies: rt)e 0ort) Oil !ompany 0O!7 an t)e ,out) Oil !ompany ,O!7: to ,O/O? T)e report use a isareate system: listin 34 &ompanies =)i&) )a bou)t oil from ,O/O urin 2>>< an furt)er brea#in up t)e fiures into reional mar#ets? T)e top t)ree buyin &ompanies =ere t)e "nian Oil an .as &ompany: =it) over four billion ollars =ort): %''on/obil =it) over t)ree billion ollars: Total =it) just uner t)ree billion ollars: an B( =it) over t=o billion ollars? Co"pany /a"e
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T)e report also note t)at (ri&e ater)ouse !ooper =as suppose to re&eive &onfirmation t)at t)e sums reporte by ,O/O =ere a&tually eposite in t)e $eeral Reserve Ban# of 0e= 9or#: uner t)e arranement put in pla&e by t)e +0 ,e&urity !oun&il +0,!7: but t)at t)e ban# )a not supplie t)is &onfirmation? T)e report liste some 14 separate is&repan&ies in reports bet=een ,O/O an t)e buyin &ompanies? 131>
riticism %nery &onsultan&y OpenOil )as &riti&ise t)e nature of "raqs pat) to=ars %"T" &omplian&e: notin t)at submissions from buyin &ompanies =ere not al=ays sine off by t)e !%O or !$O as stipulate by %"T" rules: an t)at t)e !entra l Ban# of "raq !B"7 =as unable to obtain statements for t)e *evelopment $un for "raqi oil revenues from t)e $eeral Reserve Ban# of 0e= 9or#: espite multiple requests over a t)ree-mont) perio? T)erefore t)ere =as no &onfirmation t)at t)e money re&eive by t)e "raqi overnment ultimately &orrespone to t)e invoi&es sent out by ,O/O? T)e aut)or also &alle for a =ier s&ope of implementation before "raq =as rante &ompliant status?1311 )I/I official &ebsite$ ===?eiti?or Ira' )I/I official &ebsite$ ===?ieiti?or?iq
Publish -hat Eou Pay P-EP! (ublis) )at 9ou (ay (9(7 is a lobal net=or# of &ivil so&iety oranisations &allin for oil: as an minin revenues to form t)e basis for evelopment an improve t)e lives of orinary &itiEens in resour&e-ri&) &ountries? 131> Re&on&iliation of &as) inflo=s from t)e petroleum inustry in "raq in 2>><: I)I/I: retrieve 11 anuary 2>12? 1311 "raqs $irst Re&on&iliation Report %'e&utive ,ummary: 01en0il: anuary 2>12?
232
$rom a fe=: mostly +-base roups at t)e time of its laun&): as of early 2>13: (9( )a &reate a lobal net=or# mae up of more t)an 65> member oranisations a&ross t)e =orl: in&luin )uman ri)ts: evelopment: environmental an fait)-base oranisations? "n more t)an 35 &ountries: net=or# members joine to &reate national &oalitions? /any also &ollaborate on a reional level?1312 A&&orin to onas /ober of t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7: (9( )as &reate a li)t tou&) lobal net=or#I ? 1313 (9( )as often been seen to be t)e flabearer of a stratey =)i&) says transparen&y efforts s)oul be le by leal an reulatory requirement: an mae obliatory for &ompanies: in &ontrast to t)e approa&) aopte by t)e %"T": =)i&) is &onsensual?1314
6istory T)e &all to publis) =)at you pay first appeare in a 1<<< report by .lobal itness on t)e oil an ban#in inustries in Anola? On t)e ba&# of t)is: in une 2>>2 .lobal itness: alon =it) fello= founi n members !A$O*: Open ,o&iety "nstitute O,"7: O'fam .B: ,ave t)e !)ilren + an Transparen&y "nternational +: laun&)e t)e =orl=ie (9( &ain? T)e small founin &oalition of 0.Os =as soon joine by ot)ers su&) as !at)oli& Relief ,ervi&es: Cuman Ri)ts at&): (artners)ip Afri&a !anaa: (a' !)risti 0et)erlans an ,e&ours !at)olique!AR"TA, $ran&e: alon =it) an in&reasin number of roups from evelopi n &ountries?1312
Activities (9( unerta#es publi& &ains an poli&y avo&a&y to a&)ieve is&losure of information about e'tra&tive inustry revenues an &ontra&ts?1312 T)e oranisations &all for &ompanies to publis) =)at you pay an for overnments to publis) =)at you earn form t)e basis of t)eir a&tivities? Co=ever t)e &oalition also &alls for transparen&y an a&&ountable manaement an e'peniture of publi& funs: as =ell as t)e publi& is&losure of e'tra&tive inustry &ontra&ts an for li&ensin pro&eures to be &arrie out transparently an in line =it) best international pra&ti&e? 1312 (9(s a&tivities &onsist primarily of avo&a&y efforts an &apa&ity builin of &ivil so&iety roups? T)e ro=in esire to monitor t)e payments: revenues an e'penitures =it)in t)e e'tra&tives se&tor )as also enerate an in&reasin nee for te&)ni&al trainin aroun issues su&)N &ontra&tin an ta'ation reimesN auitin an a&&ountin pro&essesN %"T" pro&esses: rules an poli&ies? (9( &ollabo rates =it) lo&al an international a&tors to oranise trainin =or#s)ops: &onferen&es an seminars to )elp meet t)ese nees?1312
1312 About +s: Publish "hat .ou Pay retrieve 15 anuary 2>13? 1313 it)out (9(: no %"T": )I/I Blog: 16 ,eptember 2>12? 1314 %'tra&tive "nustries Transparen&y "nitiative %"T"7: P".P: retrieve 15 anuary 2>13?
233
0overnance "n 2>>6 a ,tratei& Avisory .roup ,A.7 =as establis)e to oversee stratei& plannin? T)e ,A. is &omprise of 12 representatives from a broa spe&trum of (9( members from aroun t)e =orl? (9( )as an "nternational !oorinator "!7 base in onon as =ell as one full-time reional &oorinator for Afri&a: an &oorinators for all national affiliate &oalition s? T)ese &oorinators are supporte an overseen by manaement &ommittees? Representatives from t)e entire &oalition meet every t=o years for an international stratey meetin?1315 0fficial "ebsite$ ===?publis)=)atyoupay?or
Revenue -atch Institute R-I! R" =as first laun&)e in 2>>2 as t)e Revenue at&) (roramme of t)e Open ,o&iety "nstitute O,"7 an spun off into an inepenent oranisation in une 2>>6? A&&orin to t)eir offi&ial site: t)e Revenue at&) "nstitute is t)e only oranisation ei&ate e'&lusively to aressin t)e spe&ial problems of oil: as an minin-epenent &ountries] L&ountries =)ere poverty: &onfli&t an &orruption too often &onvereK? 1316
Activities R" &)ara&terises its =or# as mainly =it) &ivil so&iety: )elpin t)em oversee e'tra&tive inustries a&ross t)e entire value &)ain: from =ell)ea to international mar#ets? T)e oranisation also ma#es many small rants to partner institutions in evelopin &ountries?1316 R" =as a #ey founin member of t)e %"T" in 2>>2 an )as sat on its "nternational Avisory Boar? T)e institute efines its proje&ts as supportin t)e %"T" pro&ess in many &ountries aroun t)e =orl?131 R" also &arries out analysis of ata foun in %"T" reports for parti&ipatin &ountries? As part of t)is pro&ess t)ey revie= t)e quality of re&ent reports an e'tra&t #ey pie&es of revenue ata: t)en ran# t)e various reports a&&orin to a set of pre-etermine ini&ators?131; 0fficial "ebsite$ ===?revenue=at&)?or )I/I %ata Analysis$ ===?ata?revenue=at&)?oreiti 1315 Co= e Are .overne: Publish "hat .ou Pay, retrieve 14 *e&ember 2>11? 1316 About +s: !evenue "atch Institute: retrieve 26 /ar&) 2>12? 131 R" an t)e %"T": !evenue "atch Institute: retrieve 26 /ar&) 2>12? 131; %"T" Reports Results an Analysis: !evenue "atch Institute : retrieve 26 /ar&) 2>12?
234
Revenue -atch Institute in Iraq T)e Revenue at&) "nstitute R"7 )as been a&tive in "raq sin&e s)ortly after t)e 2>>3 =ar? "n April 2>>6: R" )el a seminar in Beirut at)erin over 5> spe&ialists an e'perts in t)e oil inustry131<
Projects "n 2>11: R" supporte t)ree proje&ts in "raqN t=o to strent)en parliamentary oversi)t of "raqs oil an as se&tor an one to raise a=areness of t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7 amon &ivil so&iety oranisations !,Os7 in "raqs uris) nort)?132>1321 R" sponsore a +, G115:<5; rant in 2>11 for t)e Arab Reion (arliamentarians Aainst !orruption AR(A!7 to buil t)e &apa&ity of "raqi parliamentarians: #ey ministry staff an &ivil so&iety representatives to improve oil an as revenue manaement? T)e rant involve AR(A! )olin a series of t)ree-ay =or#s)ops to train parti&ipants to obtain: analyEe an a&t on oil an as se&tor-relate information: in&luin publi& poli&y issues: stanar inustry oversi )t pra&ti&es: revenue manaement an transparen&y: &ontra&tin basi&s: analyEin oil an as &ontra&ts an t)e %"T"?132>
0lobal -itness .lobal itness is a non-profit oranisation )eaquartere in onon =)i&) es&ribes itself as e'posin It)e &orrupt e'ploitation of natural resour&es an international trae systems: to rive &ains t)at en impunity: resour&e-lin#e &onfli&t: an )uman ri)ts an environmental abusesI? 1322 $oune in 1<<3: .lobal itness )as been a #ey player in many of t)e major international me&)anisms an initiative s t)at )ave been establis)e to aress t)ese issuesN in&luin t)e imberley (ro&ess overnin prou&tion of iamons an pre&ious stones: an t)e %'tra&tive "nustries Transparen&y "nitiative %"T"7?
131< ,eminar report /anain "raqs (etroleum: !evenue "atch Institute: April 2>>6 132> ,trent)enin t)e Oversi)t Role of "raqi (arliamentarians in t)e Oil an .as ,e&tors: !evenue "atch Institute: retrieve 6 anuary 2>12? 1321 Raisin %"T" A=areness Amon !,Os in "raqMs 0ort)ern uris) Area: !evenue "atch Institute: retrieve 6 anuary 2>12? 1322 .lobal itness: About +s lobal "itness: retrieve 24 O&tober 2>1>?
235
Investi5ations and results .lobal itness &laims t)eir investiations )ave )a ire&t an major impa&ts: su&) as t)e "nternational /onetary $un "/$7 =it)ra=al from !amboia in 1<<6 over &orruption in t)e loin inustry: 1323 t)e imposition of timber san&tions on !)arles Taylors iberia in 2>>3 :1324 an t)e pre&eent-settin arrest of timber baron .us ou=en)oven in t)e 0et)erlans in 2>>5?1325
Oil .lobaland itness0as starte prou&in reports on t)e oil an as inustry in 2>>4 =)en its report /ime for /rans1arency etaile abuse of natural resour&es in aEa#)stan: !ono BraEEaville: Anola: %quatorial .uinea an 0auru? 1326 Reports on Russias as trae =it) t)e &ountries of %astern %urope an t)e %+ follo=e?132 "n ,eptember 2>>< .lobal itness prou&e a report =)i&) provie etails of t)e la&# of transparen&y in t)e =ay ,uan istributes oil revenues bet=een t)e overnment in )artoum an t)e autonomous overnment of ,out) ,uan?132;
Conflict minerals .lobal itness =or# on &onfli&t minerals fo&uses on t)e *emo&rati& Republi& of !ono *R!7 =)ere fi)tin is fuelle by t)e trae in valuable minerals su&) as &assiterite: &oltan: =olframite an ol? 132< "t =as also one of t)e first oranisations to brin t)e =orls attention to t)e problems of &onfli&t iamons in &ountries su&) as iberia: ,ierra eone: Anola: t)e *R!: an !ote "voire? T)e oranisation is an offi&ial observer of t)e imberley (ro&ess an &ontinues to &ain for t)e strent)enin an effe&tive implementation of its rules? Co=ever in *e&ember 2>11 .lobal itness mae t)e e&ision to leave t)e pro&ess: ue to &on&erns t)at t)e me&)anism =as no loner provin effe&tive in a&)ievin its obje&tive?133> 0fficial &ebsite$ ===?lobal=itness?or 1323 Our Cistory lobal "itness: retrieve 24 O&tober 2>1>? 1324 iberia brea&)es +0 ,an&tions - =)ilst its loin inustry funs arms imports an R+$ rebels lobal "itness: 6 ,eptember 2>>1? 1325 Arms ealer an timber traer .uus ou=en)oven foun uilty of brea#in a +0 arms embaro lobal "itness: une 2>>6? 1326 Time for Transparen&y lobal "itness: retrieve 26 O&tober 2>11? 132 "ts a as - funny business in t)e Tur#men-+#raine oil trae lobal "itness: retrieve 26 O&tober 2>11? 132; $uellin mistrust - T)e nee for transparen&y in ,uans oil inustry lobal "itness: retrieve 26 O&tober 2>11? 132< !onfli&t /inerals lobal "itness: retrieve 3> 0ovember 2>11? 133> )y =e are leavin t)e imberley (ro&ess - A messae from .lobal itness $ounin *ire&tor !)armian .oo&) lobal "itness: 5 *e&ember 2>11?
236
9ransparency International Transparen&y "nternational T"7 is t)e =orls larest &ivil so&iety oranisation =or#in on issues of &orruptio n an transparen&y? "t =as foune in 1<<3 by (eter %ien: a former reional ire&tor in Afri&a from t)e orl Ban#? %ien e'plaine t)at in )is 25 years at t)e orl Ban#: ba proje&ts often ot fune be&ause t)ey )a t)e support of leain offi&ials: ba&#e by &orruption? T)e purpose 1331t)e aena of t)e orl Ban#: lare onor of T" =as toan putt)e t)eevelopment issue of &orruption &ountries: pro&ess?on
*a;or Pro5rams T)e proje&t for =)i&) T" is most #no=n is its !orruption (er&eptions "ne': an annual report issue sin&e 1<<5? "n it: business people are as#e for t)eir per&eptions of t)e influen&e of &orruption in t)eir &ountry?1332 As =ell as t)e ine': T" also publis)es a rane of reports an position papers on various issues relate to transparen&y?1333
Oil and 0as "n /ar&) 2>11: T" issue a report about t)e status of transparen&y amon lobal oil &ompanies? "t follo=s a 2>>; report t)at =as built on a 2>>5 stuy by t)e &)arity ,ave t)e !)ilren into t)e same issue: but t)e met)ooloy =as aapte? 1334 0fficial "ebsite$ ===?transparen&y?or
9ransparency of 0lobal Oil Companies "n /ar&) 2>11: Transparen&y "nternational T"7 issue a report on t)e transparen&y of information provie by 42 major oil an as &ompanies aroun t)e =orl?1331
Findings T)e report summarise its analysis into several main finins Oil an as &ompanies are in&reasinly aoptin an ma#in publi&ly anti-&orruption prorammes: but t)ere are many &ompanies t)at still oavailable not publis) t)eir anti-&orruption &oes: poli&ies or measures?
1331 (eter %ien: Africa Progress Panel: retrieve 15 anuary 2>13? 1332 2>11 !orruption (er&eption "ne': /rans1arency International: retrieve 5 anuary 2>12? 1333 (oli&y Resear&): /rans1arency International: retrieve 5 anuary 2>12? 1334 (romotin Revenue Transparen&y 2>11 Report on Oil an .as !ompanies: /rans1arency International: retrieve 25 O&tober 2>11?
23
(ubli& is&losure of partners)ips an subsiiaries: in&luin t)eir &ountries of in&orporation: are #ey elements of oranisational is&losure an t)e averae results in t)is se&tion =ere relatively )i)? /any national oil &ompanies )ave a oo level of is&losure? Co=ever: is&losure of equity or fiel partners in upstream operations remains infrequent: espite t)e fa&t t)at equity minority partners)ips often present &orruption ris#s? !ountry-level is&losure on international operations )as improve sin&e t)e 2>>; (RT report: an reportin on prou&tion levels )as be&ome a broaly a&&epte stanar an t)ere are e'amples of oo is&losure for finan&ial ata an reserves? But &ountry-level is&losure on international operations remains =ea#N many &ompanies o not is&lose any finan&ial ata on a isareate &ountry-level? T)e )ost &ountry environment itself &annot be e'&lusively blame for poor is&losure? "n t)e same )ost &ountries: often es&ribe as iffi&ult environmentsM: some &ompanies is&lose e'tensive information: =)ile t)e ot)ers is&lose little or none at all?
Key Policy Recommendations 9or 1om3anies
*etaile anti-&orruption prorammes s)oul be publi&ly available !ompanies s)oul unerta#e voluntary inepenent assuran&e of anti-&orruption prorammes !ompanies s)oul publis) etails of t)eir subsiiaries an fiels of operations Oil an as &ompanies s)oul in&rease t)eir repo rtin on a &ountry-by-&ountry basis !ompanies s)oul join t)e %'tra&tive "nustries Transparen&y "nitiative !ompanies s)oul &reate an maintain up-to-ate &orporate =ebsites 9or ational :il 1om3anies (:1s)
All 0O!s s)oul introu&e internationally or enerally a&&epte a&&ountin stanars: as =ell as publis) inepenently auite a&&ounts T)e bet=een )ome overnments an 0O!s s)oul be &lear an publi&ly relations)ips is&lose 9or Public &odies
T)e %uropean +nion s)oul amen relevant leislation to require %+-reistere &ompanies to report on t)eir operations on a &ountry-by-&ountry basis All overnments t)at are )ome to oil an as prou&ers s)oul require &ompanies to report on t)eir operations on a &ountry-by-&ountry basis 23;
,to&# e'&)anes s)oul enfor&e reulations proviin for &ountr y-level reportin 9or the /nvestor 1ommunity
"nternational ratin aen&ies an ris# analysts s)oul in&lue anti- &orruption measures in t)eir ris# evaluation moels =)ere relevant T)e "nternational A&&ountin ,tanars Boar s)oul require &ompanies to report #ey information on a &ountry-by-&ountry basis rammes: !orporate oranisational responsibility ini&es s)oul reportin on anti-&orruption prois&losure an in&lue &ountry-level is&losure
Report on 0lobal Oil Companies in Iraq !ompanies in t)e Transparen&y "nternationals /ar&) 2>11 report 1335 =ere rae on t)ree &riteria t)eir implementation an promotion of soun anti-&orruption prorammes to prevent iniviuals from misappropriatin revenuesN t)eir is&losure of t)e finan&ial relations)ips t)ey )ave =it) t)eir partners an t)eir operatin subsiiariesN an t)eir publis)in of pre&ise information about )o= mu&) revenue oes to state buets an )o= mu&) is retaine by &ompanies? Areatin t)e results of t)ese &riteria &ompile by Transparen&y "nternational: =it) 1>> per&ent representin t)e )i)est level of transparen&y an 41 per&ent representin t)e areate mean: international oil &ompanies "O!s7 operatin in "raq pla&e as follo=s? Above avera4e 3erformance trans3arency;
,tatoil 5V
,)ell 5;V
B( 64V
%''on/obil 54V
/arat)on 63V
Talisman %nery 52V
%ni 62V
Total 4V
&elo# avera4e 3erformance trans3arency;
.aEprom 2V
!0OO! 1
(etronas 23V !0(! 12V ,even &ompanies operatin in "raq oas: u=ait %nery !ompany: T(AO: Cunt: .enel %nery: *0O an Ceritae7: =ere not fully &overe in t)e report?
1335 (romotin Revenue Transparen&y 2>11 Report on Oil an .as !ompanies /rans1arency International &ebsite Retrieve 25 O&tober 2>11?
23<
Iraq Directory of Contacts Belo= please fin a list of &onta&t etails for iniviuals: oranisations an institutions =)o may be &onta&te for furt)er etail on t)e issues &overe in t)e OpenOil "raq Oil .uie: alon =it) =ebsite listins for a&&ess to furt)er resour&es?
Civil %ociety and *edia Or5anisations $I)I ebsite ===?eiti?or "%"T" ebsite ===?ieiti?or?iq 2ddie 3ich
*eputy Cea an Reional *ire&tor ,out)ern an %astern Afri&a an t)e /ile %ast7 %"T" "nternational ,e&retariat %-mail eri&)ceiti?or Telep)one [44 2> 613 46<; Alaa 0ohie 2l-!een
Cea of "raq %"T" ,e&retariat %-mail aleen5cmsn?&om Telep)one [<64 ;> 1<6 46>6
Global Witness ebsite ===?lobal=itness?or Brenan O*onnell ,enior !ampainer %-mail boonnellclobal=itness?or Telep)one [44 2> 4<2 5;<; [44<> 3< 3;
24>
Ira6 Oil Report ebsite ===?iraqoilreport?&om 'en 4ando
*ire&tor an "raq Bureau !)ief %-mail benlanociraqoilreport?&om Telep)one ><>324446<
9ournalistic 7reedoms Observatory ebsite ===?jfoiraq?or 5iad .halaf al-A6ili
*ire&tor %-mail Eyacjfoiraq?or 'ashar Al-0andala,y
(roje&t /anaer %-mail bas)arcjfoiraq?or Telep)one [<64 514;62 <>1 [<64 <665> <>1
!ublish What :ou !ay ebsite ===?publis)=)atyoupay?or Sophia #ardin)
(roramme Offi&er %-mail s)arincpublis)=)atyoupay?or Telep)one [44 2> >31 116
Reporters Without &orders ebsite ===?rsf?or Soa7i) !ollet
0ort) Afri&a 8 /ile-%ast *es# 4 rue Divienne $ - 5>>2 (aris Telep)one [ 33 1 44 ;3 ;4 ;
241
$a' [33 1 45 23 11 51 %-mail moyen-orientcrsf?or mile-eastcrsf?or
Revenue Watch Institute ebsite ===?revenue=at&)?or Patricia .ara"
/ile %ast an 0ort) Afri&a Reional !oorinator %-mail p#aramcrevenue=at&)?or
)ransparency International ebsite ===?transparen&y?or Stephanie T,i))
/ile %ast an 0ort) Afri&a *epartment Alt /oabit <6 *-1>55< Berlin Telep)one [4< 3> 343;2>41; $a' [4< 3> 34>3<12 %-mail st=ictransparen&y?or
Iraqi %tate +ntities &aghdad Oil )raining Institute ===?boti?ov?iq (O Bo' 46>3;: Al-/ustansiria: Ba)a Tel [<64-1-425>363 %-mail boticboti?ov?iq
Ira6 $%ploration ompany ===?iraqioe&?&om /inistry of oil Bo' 56<4 Tel? [<64 1 ;1>>> [<64 1 ;1>14 %-mail oe&ciraqioe&?&om 242
-irkuk Oil )raining Institute ===?#ir#u#oti?net
-urdistan Regional Government ===?#r?or#r
;aysan Oil ompany ===?mo&?oil?ov?iq Republi& of "raq /issan (rovin&e Amara) !ity Tel [<64433134> [<644331342 %-mail mo&doilcmo&iraq?&om
'orth Gas ompany (?Bo' 167 ir#u# %-mail ascn&?ov?iq
'orth Oil ompany ===?no&?ov?iq ir#u# Tel [<64 5> 25>>>> %-mail infocno&?ov?iq
'orth Refineries ompany ===?nr&?oil?ov?iq "raq: Ba)a: araa: (?O bo' 326 Tel [<64 1-543->2<;
!etroleum and ontracts "icensing Directorate ===?p&l-iraq?&om /inistry of Oil (ort ,ai ,treet Ba)a: "raq %-mail &onta&tcp&l-iraq?&om
243
!etroleum Research and Development entre ===?pr&?ov?iq
,outh Gas ompany ===?s&iraq?&om Basra provin&e - )or Al-@ubair Al-As)ar mailbo' 12>1 Tel >4>642346 >4>642346 %-mail s&odoffi&e2>>
,outh Oil ompany ===?so&-basra)?&om Basra) %-mail infocso&-basra)?&om
,outh Refineries ompany ===?sr&?ov?iq Basra) Tel [<64-4>-6112 [<64-4>-61413 %-mail infocsr&?ov?iq
,tate Oil ;arketing ompany ===?somooil?ov?iq A- Cay A-/outasim - *istri&t 24 - ,treet 1 A-/ut)ana street : Aja&ent to AResafa fun fai (?O?Bo' 511; %-mail infocsomooil?ov?iq
Iraq Oil Industry Listin5s Oilfield %ervice Companies T)e follo=in is a list of oilfiel servi&es &ompanies =it) operations in "raq? (lease note t)at t)e list is not e')austive?
244
Alhair +il Services
Ira' 0ffice 52 Te&)noloy +niversity ,t: Ba)a 1>>66 "RAF?
Tel? [<64>461536; $a'? [<6265113;; %-mail amincal#)airoil?&om "ebsite ===?al#)airoil?&om Services lan an marine transportationN rillin 8 s&outinN trainin? Al 8abas Group
Baghdad 0ffice Al-/ansour: 14 Ramma)an ,t? Builin 0o? 4: /? 6><: @? 22:
Tel [<64 1 542><54 /obile [<64 <>1<>62<1 $a' [<64 1 5412< %mail qabasoscya)oo?&om "ebsite ===?alqabasroup?&om Services infrastru&tureN =aste =aterN irriationN ma&)inery an materials? 'aer #u)hes
!egional 0ffice (?O? Bo' 4513 *)afir To=er: 4t) $loor !orner of 0aja %le&tra ,treet
Abu *)abi Tel [<1?2?41><1>> $a' [<1?2?41><111 "ebsite ===?ba#er)u)es?&om Services reservoir evelopmentN rillinN interate operationsN evaluationN &omple-
tionsN prou&tionN pressure pumpinN tubular servi&esN pro&ess an pipeline servi&esN &)emi&alsN eu&ation servi&es? 'asrah 2ast Co"pany
Ira' 0ffice (?O? Bo' 2141: Basra): "raq
Tel [<64 4> 64>6<1 $a' [<64 4> 623<1< /obile [<64 ;> 13<>1;> At)eer7 [<64 <> 251;1 "raqna7 [<1 5> 5;6<33 "nternational7 %-mail infocbasra)east?&om "ebsite ===?basra)east?&om Services refineriesN pumpin an re&eivin stationsN as prou&tion: liquefa&tion an
istribution plantsN pipelinesN po=er eneration plantsN transmission net=or#s? 'ur6 Al 3u"ila Co"pany
Ira' 0ffice Ba)a - arraa - a)ramana ,q?
245
Tel [<64->-33<543 Services reservoirsN pipelines? Crescent Petroleu"
Country 0ffice Tel [ <64 17 1< 4321 $a' [ <64 17 1; 243 %-mail &p&i-iraqc&res-
&ent?ae "ebsite ===?&res&ent?ae Services oil an as e'plorationN prou&tionN transport? #iTech Fluid Syste"s Country 0ffice 2455543 ,)mony ,treet An#a=a: %rbil: uristan: "raq
()one 4>3?54?2<>6 $a' 4>3?54?312< %mail mo&?iulf)&eti)cofni "ebsite ===?)ite&)flui?&om Services rillin flui systemsN =or#over an &ompletionsN flui aitives? #ua,ei
Country 0ffice Couse 0o?24: ane 0O?2: ,)oris) Fuater 1>1: ,ulaimaniya): "raq
Tel >><64-1-445<3 $a' >><64-1-445<3 "ebsite ===?)ua=ei?&om Services "!T ,olutions? IAG International Ar"oured Group
!egional 0ffice (?O? Bo' 5>>6> )or )=air "nustrial (ar# RA $ree Trae @one Ras Al
)aima): +nite Arab %mirates Tel [ <1 266 >>2; $a' [ <1 266 ;<6< %-mail infocinterarmore?&om "ebsite ===?interarmore?&om Services se&urity servi&esN ris# manaement &onsultan&yN se&urity traininN mine a&-
tion? 9a,ar Al .halee6 Shippin) Country 0ffice (O Bo' 1332 Basra): "raq
Tel [<64 ;> 1>23<;; [<64 ;1 235<556 %-mail basracja=aral#)aleej?&om "ebsite ===?ja=aral#)aleej?&om Services s)ippin servi&es? 0ott 0ac!onald
246
!egional 0ffice (?O? Bo' 4><4: Al Cas)mi To=er: Airport Roa Abu *)abi - Al Cas)mi
Tel [<1 >72 445 4> $a' [<1 >72 445 4<> "ebsite ===?mottma&?&om Services manaement: enineerin an evelopment &onsultan&y? +ilServ
!egional 0ffice 15t) floor: One Business Bay Builin: (?O?Bo' 1164;: *ubai "ebsite ===?oilserv?&om Services rillin: &ompletion an prou&tion servi&es? +live Group
Country 0ffice
Tel [<1 >74 36> >;31 %-mail iraqcoliveroup?&om "ebsite ===?oliveroup?&om Services se&urity: ris# mitiation an spe&ialist support servi&es? Petronasr
Ira' 0ffice 0ear 0e= !ity: 6> /: %rbil
Tel [<64 5> 4;3 ;5<3 [<64 > 1< 4444 ,atellite p)one [ ;;216 666> <<66 %mail infocpetronasr?&om "ebsite ===?petronasr?&om Services po=er stationsN refineriesN pipelinesN infrastru&ture? Schlu"ber)er
!egional 0ffice ,&)lumberer Te&)ni&al ,ervi&es: "n&? *ubai orl Trae !enter:
$loor (O Bo' <261 *ubai: +A% Telep)one [<1 4 3>6 $a' [<1 4 3>6 1<< "ebsite ===?slb?&om Services seismi& servi&esN rillinN &)ara&teriEationN &ompletionsN prou&tionN =ell in-
tervention? Sha""ery
Ira' 0ffice ,aba) Al-,)ammery 8 (artners !o? 5>3>> Al-/aMamoon: Al-/ansoor Al-
Ameerat ,t?: *istri&t 0o? 6><: ,t? 0o? 1: Couse 0o? 21 Ba)a: "RAF Tel [<64 1 5412; [<64 1 5413516 $a' [<64 1 1 541;155 24
%-/ail sap&odiraqcs)ammery?&om "ebsite ===?s)ammery?&om Services e'ploration an rillin suppliesN te&)noloy an &ommuni&ationsN mei&al
suppliesN &)emi&alsN automobile equipment? S.A
Baghdad 0ffice B"A( (ost Offi&e Bo' 23>>< Ba)a "nternational Airport Ba)a: "raq
Tel [<64 <>1 1>3 556 Tel [<64 <>1 <>< ;1< %mail ba)acs#a-arabia?&om Basrah 0ffice ,A !omple' Basra) "nternational Airport Basra): "raq Tel [<64 <>1 <>< ;1 Do"( [1 >3 63 3< %mail basra)cs#a-arabia?&om )rbil 0ffice ,A !omple' %rbil "nternational Airport %rbil uristan: "raq
Tel [<64 >3 66; <1< Tel [<64 5> 445 6415 Tel [<1 5> <1<5431 %mail infocs#a-#uristan?&om "ebsite ===?s#a-arabia?&om Services aviation ,ervi&esN roun loisti&sN life supportN fuel supply &)ain manae-
mentN & &onstru&tionN se&urity servi&es? Technolo)y Partners
Country 0ffice Al /ansoor
Tel [<64 <>1 <463;1 Tel [<64 <>1 <4366> $a' [<14 3<> ;>> "ebsite ===?tpfE?&om Services "!T infrastru&ture an servi&es interation? TU+SSC+
Ira' 0ffice Al-/ansur: Ba)a: "raq
Tel [<64-1-5411424 $a' [<64-1-54154<; "ebsite ===?tuoss&o?&om Services instrumentation an &ontrol po=er anlabenerationN mentN me&)ani&alN enineerinN safety systemsN an environmentN equipment?=ater treat:eatherford International
Country 0ffice Tiris ,t? Be)in Amara inerarten Amara /issan7 "raq
Tel? [<1 2;4 <21 $a'? [<1-4-44< 52> "ebsite ===?=eat)erfor?&om Services rillinN evaluationN &ompletionN prou&tionN interventionN trainin?
24;
9radin5 and *ar=etin5 Companies T)e &ompanies liste belo= all bou)t oil from state-o=ne ,O/O in 2>>
2> !anaa ,quare !anary )arf onon: %14 50 +nite inom Telep)one [44 2> 4<6 4>>> ConocoPhillips International Tradin) PT2
1 Temase# Avenue: /illenia To=er: ,inapore >3<1<2 2;;on0obil Sales and Supply 44C
%''on/obil ,ales 8 ,upply ! One Al)ambra (laEa ,uite <>> !oral .ables: $loria $33134: +,A Telep)one outsie +,A7 [1 3>5 45< 635; Indian +il Corporation 4i"ited
36: "nian Oil !entre: B)ulab)ai *esai Roa: !umballa Cill: /umbai: /a)aras)tra 4>>>26: "nia Telep)one [<1 22 2554 16< .och Supply and Tradin) 4P
$ountain Couse: 6t) $loor: 13> $en&)ur&) ,treet: onon %!3/ 5*: +nite inom Telep)one [44 >7 2> 64; 63>> Shell International 2astern Tradin) Co"pany 4i"ited (SI2TC+
,)ell Couse: +% ,quare: ;3 !lemen&eau Ave: 23<<2>: ,inapore Sinoche" International +il (4ondon Co 4td
estminster To=er 3 Albert %mban#ment onon ,%1 ,( S. 2ner)y 2urope 4i"ited
3r $loor 11-12 Canover ,treet: onon 1, 19F +nite inom Telep)one [44->72>-4<5-><56 Total International 4i"ited
Tour !oupole - a *fense 6 2 pla&e ean /illier <2>; - (AR", A *%$%0,% !%*%Z $ran&e 1336 Re&on&iliation of &as) inflo=s from t)e petroleum inustry in "raq in 2>>< I)I/I Retrieve 11 anuary 2>12?
24<
1alero Supply and 0aretin) Co"pany
One Dalero ay
Re5ional offices of IOCs operatin5 in Iraq 'P
BP Ira' *? !o B( .roup !)ertsey Roa ,unbury-on-T)ames /ilese' T16 0
+nite inom Telep)one [44 >71<32 62 >>> %-mail iraq?enquiriescbp?&om !/+
%*0 (iddle )ast Offi&e 3<>2: 325>3 *ubai /eia !ity
*ubai - +A% Telep)one [<1-4-364262> $a' [<1-4-36;;44 2ni
SAIP)( S-P-A- I!A2 %ni subsiiary7 &o Orient Trnsport !o? 11 ,)meisani Al-Camra
Builin 4t) $loor A//A0 Telep)one [<62 6 566412; - 56;2546 $a' [<62 6 56;2541 Ga7pro"
a#1rom #arube#hneftega#
4A 0ovoanilovs#aya %mb? 111>5: /os&o= Telep)one [ 4<57 544-4;-<3 .o)as
+ogas Ira' B-?-
2>> (rins Bern)arplein: A/,T%R*A/: 1><B 0et)erlans .u,ait 2ner)y Co"pany
Baghdad 0ffice Al a)a istri&t <>2: ,t 1>: Builin 5: Apartment 12: Ba)a: "raq
Telep)one [<64171<1;61 Basrah 0ffice "sti#lal ,treet: near 0oor Cospital Basra - "raq
Telep)one [<647 4> 622>>2 /obile [<647 ;>1321>1> 25>
Petronas
P)/!0*AS Carigali Ira' Holding B-?- Offi&e 0o?1: evel 4: .ate (re&in&t Builin 2: *ubai
"nternational $inan&ial !entre: (?O Bo' 5>65<4: *ubai: +A% Telep)one [<1 6>3 2331 5>>> Shell
Shell U1stream International Ltd (?O? Bo' 116 *ubai +A%
Telep)one [<14 4>544>> %-mail info%(+A%cs)ell?&om Total
/otal )8P Ira'
Cay Al-a)a /a)alat <>6: @u#a# ; Couse 0S21 (?O? Bo' 23>1 Al=iya) Ba)a Telep)one [<64 1 1< 2<>; TPA+
/P0C Ira' 0ffice
Al-aEereya) 3>1 ,e&tion 5t) ,t? 0o 6 Ba)a J "RA Telep)one [ <> 312 2> 2> >> J 1; 5; J 1; 5< %-mail ote#elictpao?ov?tr
251
