The Future of Funding the Oil Industry in Iraq

The Future of Funding the Oil Industry in Iraq

  • 11 April 2004

Due to the events in Iraq in the last decades – wars,
sanctions, negligence, plundering and unrest – the oil
industry in Iraq has experienced great destruction. Dr.
Ali Hussein suggested that the oil and gas sectors in
Iraq currently need rehabilitation and expansion, which
would require investments ranging from US$30–40
billion over the next few years.
He suggested that the Iraqi oil sector needs, at
present, to rehabilitate and expand its (upstream) oil
production processes and its (downstream) oil-derivative
and petrochemical production processes. The oil sector
in Iraq can be funded by oil revenues, loans from abroad,
donations and foreign investments. As a result of the
great deterioration of the Iraqi economy and the need for
huge investments in all sectors of the national economy,
especially infrastructure, Iraq has very limited choices
for local investment and spending on the oil sector, a
matter requiring foreign investments. However, due to
the sensitivity of this issue for Iraqis, opinion is split, with
some in favor of this kind of foreign investment and others
against it. In spite of the above-mentioned problems, the
future of the oil industry in Iraq seems bright, provided that
the necessary safety and funding are available. This is due
to the availability of huge oil reserves, the low production
costs, the existence of numerous outlets for exports and the
existence of national technical experts qualified to drive the
processes of rehabilitation and expansion.

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Sunday 11 April 2004

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Sunday 11 April 2004

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