Iraqi Oil: Temptation versus Risk

Iraqi Oil: Temptation versus Risk

Azerbaijan, Baku, 4 September / Trend corr. A.Badalova/ Production and export of Iraqi oil still remain attractive for foreign companies in spite of undetermined political situation in the country, western experts said to Trend .

"Other foreign companies are quite interested in investing in oil in Iraq.  It is under-explored and under-produced," Mary Ann Tetreault, Professor of International Affairs at Trinity University in San Antonio, Texas, told Trend via e-mail on 4 September.

According to Tetreault, Iraq needs a lot of energy for itself but if it sells more oil it would be able to afford to do research on solar and also put in wind generators to satisfy some of this demand, leaving a lot to sell abroad. 

Expert of U.S. Energy Securities Analysis (ESAI) Andrew Reed said consumer countries are most interested in investing in oil production in Iran.

"Oil companies from major consumer countries like China are most interested in participating in oil production in Iraq. This is a good way to procure future supply to their countries instead of to competing consumer countries," Reed said to Trend via e-mail on 4 September.

Chinese National Oil Corporation (CNPC) signed an agreement with Baghdad in the sum of $3bln to develop Al-Ahdab oil field in Wassit province. The agreement on oil production was signed in 1997 but then frozen. Initially, the deal sum was $700mln.

Tetreault said the problems are security, sanctions, and questions about renewed conflicts between outside powers that could spill over into its energy policy.  

"The Chinese have imperatives that make them willing to take such risks.  Other companies may have other imperatives that make Iraq attractive in spite of the drawbacks," said Tetreault. According to her, the big established companies probably would like to wait until Kirkuk is resolved and maybe also for another election and government to see how things are working out. 

" Iraq could provide security but no one can make guarantees - that's what insurance is for," Tetreault said. Kirkuk is connected with Turkey's Ceyhan port by a pipe capable of pumping 1bln barrels per day. In pre-war period about 700,000 barrels per day were produced in Kirkuk. During latest United States' operation in Iraq and during post-war period the pipe was operating with long frequent breaks due to often terrorism attacks.

Tetreault said the problem is that Iraq is not finished with the struggle over who won the country or how it should be shaped and administered.

"Iraq has made great strides getting rid of outside terrorists but we have no idea about the degree and range of sedimentation of criminal organizations, both national and transnational, and whether the people controlling the government now are prepared to share power or not. So investors are threatened with getting into the cross fire between contending groups and also between criminals and police should the government decide to crack down on crime rather than cashing in on it," she said.

E.Tariverdiyeva contributed in the article.

The correspondent can be contacted at [email protected]

Personnel changes at AccessBank
Personnel changes at AccessBank
EY Azerbaijan invites small and medium sized companies to take part in ‘EY Entrepreneur Of The Year™’ 2020-2021 competition
EY Azerbaijan invites small and medium sized companies to take part in ‘EY Entrepreneur Of The Year™’ 2020-2021 competition
"Together we are POWER": ENGINET supports injured children in Ganja city (FOTO)
"Together we are POWER": ENGINET supports injured children in Ganja city (FOTO)
Loading Bars
Latest
Iran's POMC launches its first compressor
Turkey continues to raise trade turnover with Azerbaijan
Ceyhan terminal’s oil transshipment from ACG nears 194 million barrels
Baku Metro switches to modern train control systems
Visits of citizens to liberated Azerbaijani territories still dangerous - ANAMA
Malaysia ready to assist in promotion of pilgrim tourism in Uzbekistan
Uzbekistan’s 10M2020 data on plastic cards revealed
Turkmenistan's natural gas reserves increased – Eni’s review
Time deposits value surges in Kazakhstan year-on-year
Iran's total rail transit up
Turkmenistan's oil reserves remain stable for several years – Eni’s review
Iran doubles budget for defense research projects
Georgia sees increase in hazelnuts export
Iran reveals its COVID-19 data for November 30
CNG can easily be used instead of gasoline in Iran
Chabahar - first Iranian port to attract foreign operators - PMO
Georgia decreases mobilizing funds in tax revenue
Russia increases ten-month value of chemical products import from Turkey
New apartments to be added to Azerbaijan's mortgage fund base
Number of enterprises put into operation in Iran's South Khorasan Province up
Georgia sees decrease in estimated real GDP
Dynamics of Azerbaijan’s oil production since 2000
Iran's Central Bank announces number of exchanged checks
Israel-Lebanon maritime border talks postponed, officials say
Azerbaijan to assign 'stars' to hotels given level of COVID-19 pandemic-related security
Cargo, passenger traffic via Turkish Adana Airport lowers in 10M2020
Iran reveals exports of mining products
Eni’s analysis on Azerbaijan’s oil reserves
Value of Iran's trade turnover with Syria announced
Value of Turkish chemical products exported to Turkmenistan up
OPEC+ to discuss extending oil cuts or gradually raising output
World oil reserves in Eni’s estimates
Azerbaijani credit guarantee fund reveals data on issued loans by its agent banks
Total assets of Azerbaijan's Mortgage and Credit Guarantee Fund revealed
Uzbekistan to introduce monitoring system for seismic geodynamic processes at oil & gas fields
Amount of COVID-19 cases increase in Georgia
OSCE shares experience in risk management of oil and gas infrastructure with Turkmenistan
Swiss bank to invest in modernization and technical equipment of UzAuto Motors
Expenses grow on construction of enterprises in Irans' Chaharmahal and Bakhtiari Province
Kazakhstan eyes launching production of plastic tractor spares
Iran unveils details of exports from Mazandaran Province
Azerbaijani MP talks creation of municipalities in liberated territories
Long-term loans for construction sector in Azerbaijan increase
Hungarian-Uzbek investment projects to be implemented in food, agricultural sectors
Operating profit to regulatory risk-weighted asset of Halyk Bank Georgia down
Update on construction of Tebinbulak mining, metallurgical complex in Uzbekistan
Israel increases imports of chemical products from Turkey
Romania ramps up ten-month value of chemical products import from Turkey
Iran declares details of exports via South Khorasan Province
Central Bank of Azerbaijan reveals last deposit auction's results
Kazakhstan, Israel trade down nearly twofold amid COVID-19
Baku Higher Oil School celebrates its 9th anniversary
Turkmenistan’s Turkmengas increases gasoline production
10M2020 value of Georgia's grains, legumes import from Turkey down
Capital of Iran's Nouri Petrochemical Company increased
Germany partial lockdown pushes more companies into short-time work
Turkey reveals October foreign trade turnover
Azerbaijan commissions Aghyokhush gold field (PHOTO)
Credit Suisse commercial property fund to liquidate amid big discount
Azerbaijan, Turkey plan MoU on natural gas transportation to Nakhchivan Autonomous Republic
Kazakhstan applies corrections to capital budget
Azerbaijan to ink energy cooperation agreements with a number of countries in near future
Weekly review of Azerbaijan's oil market
Iran reveals data on foreign investments in Razavi Khorasan Province
One of upcoming OPEC+ meetings planned to be held in Azerbaijan
Kazakhstan’s freight transportation operator opens tender to buy petrol
Turkmenistan's private sector increasingly involved in raw cotton production
Azerbaijan worked out draft agreements on sale and purchase of electricity with Acwa Power, Masdar
China grants Tesla green light to start selling Shanghai-made Model Y SUV
Georgian Tera Bank sees decrease in impaired loans - Fitch Ratings
Azerbaijan’s electricity generation increased by almost 40% over last 10 years
Southern Gas Corridor to open new opportunities for region’s countries to bring their energy resources to world markets
Commissioning works being completed at Turkmenistan’s Malay field
Construction at Khudaferin and Giz Galasi hydro-junctions nearing completion
'Stars' assigned to Azerbaijani hotels to be recognized on int'l platforms - Azerbaijan Hotel Association
Gold, silver prices in Azerbaijan down
Iran’s NICICO enlarges copper production
Ukraine working on ensuring food security and stability in Uzbek market
Turkish company to take part in ASAN Service projects
Leading the Way, Leading the World : Prime Minister Modi Inspires India to Become Pharmacy of the World
Uzbekistan boosts import of grain and legumes from Turkey
Britain bans new Huawei 5G kit installation from September 2021
Azerbaijan hikes percentage of cars import from Turkey in October
Iran's Karun Petrochemical Company discloses amount of its savings
Energy Minister: One of key goals is to ensure effective use of resources in Azerbaijan's liberated lands (INTERVIEW)
Azerbaijani currency rates for Nov. 30
Number of patients recovered from COVID-19 in Uzbekistan passes 70,000
UAE, Afghanistan buy Turkmen-made gasoline
Design work to build new highway in liberated Azerbaijani territories starts (Exclusive)
Iranian currency rates for November 30
Oil prices slip in cautious trade ahead of OPEC+ meet
Azerbaijan's ANAMA continues demining road to liberated Sugovushan settlement (PHOTOS)
Iran boosts exports via Kerman Province
Iran to prepare agricultural plan for Gilan and Mazandaran provinces
Azerbaijan’s liberation of its territories to revive historical Silk Road – Turkish Grand National Assembly
Azerbaijan’s Aghdam sometimes called "Hiroshima of Caucasus" - France-24 (VIDEO)
Brazil surpasses 6.3 million COVID-19 cases
Malaria death toll to exceed COVID-19's in sub-Saharan Africa: WHO
New Zealand regulator charges 13 parties over White Island eruption tragedy
Daily COVID-19 case count drops to 794 in Kazakhstan
All news