When Iraq embarked on its oil and gas licensing rounds in 2009 and 2010, the criteria for awards to develop its fields included the plateau production capacity for each field. Therefore it became important for the oil companies to set this rate at the maximum possible irrespective of Iraq’s needs, the expected conditions in the international oil market or the insurmountable logistical problems that must be faced in order to achieve such capacities.
In the euphoria, Iraq was quick and happy to announce that its production would be more than 12 million barrels a day (mbd) by 2017.
The target immediately raised many eyebrows and was described as a kind of “oil rush” and “bonanza” for the oil companies and a “wholesale” where 94 billion barrels of reserves or 66 per cent of Iraq’s are awarded to international oil companies by diminishing the role of the Iraqi operating companies especially South Oil Company. Iraqi experts were among the first to raise concern and suggested the need for revisions.
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