4 OCT, 2010, 03.

08PM IST,AGENCIES 

Iraq boasts third-largest oil reserves, overtakes Iran

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BAGHDAD: Iraq reported on Monday a sharp rise in proven oil reserves that saw it leapfrog Iran into third
place worldwide, as the war-battered country seeks to rebuild its crude-dependent economy. 

The new figure of 143.1 billion barrels of oil represents a 24-percent increase over the old level of 115
billion barrels, but still leaves Iraq ranking behind Saudi Arabia and Venezuela in terms of known
reserves, according to OPEC data. 

"Iraq's oil reserves which are extractable are 143.1 billion barrels," Oil Minister Hussein al-Shahristani
said at a news conference in Baghdad, noting this excluded any reserves in the autonomous region of
Kurdistan. 

A further 33.486 billion barrels was non-extractable, said Shahristani. 

Iraq, he added, now had 66 oilfields, including seven supergiant fields, with 71 percent of all reserves
concentrated in the south, 20 percent in the north and nine percent in the centre. 

Shahristani said known reserves at the West Qurna supergiant oilfield now totalled 43 billion barrels,
making it the second biggest oilfield in the world. 

The minister noted most of the increase in reserves came from West Qurna and nearby Zubair. 

Iraq depends on crude oil exports for 95 percent of government revenue, and is trying to upgrade
outdated infrastructure and spur economic growth after being crippled by decades of conflict and
sanctions. 

It currently produces about 2.4 million barrels of oil per day, but last year awarded contracts with foreign
energy firms to exploit 10 oilfields in the hopes of upping its production as much as five-fold.  

As part of its plan to ramp up output, it is seeking to build up its infrastructure for energy exports. 
Last month, it signed a deal with Turkey to extend its use of the Ceyhan pipeline for a further 15 years,
and also reached an agreement with Syria to build two pipelines connecting Iraq to Mediterranean sea
ports. 

Oil analysts have previously said they expected the figure of 115 billion barrels to rise, as little to no
exploration was conducted during the rule of now-executed dictator Saddam Hussein. 

Iraq is also seeking to increase its production of gas, with a public auction slated for October 20 where
international companies can bid for the rights to exploit three gasfields.  

As with the country's two oilfield auctions last year, successful companies are paid fixed prices, not a
share of the profits. 

The country's parliament has yet to pass a key hydrocarbons law, however, discussion of which has been
repeatedly delayed. 

Adoption of the law, which would regulate the sector and divide responsibility between Baghdad and
Iraq's provinces, has been held up for three years due to disagreements between MPs from the country's
various communities.