Iraq Oil Almanac

An OpenOil Reference Guide

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 /7port 3isputes.......................................................................................................... '&

Energy Industry Background

Iraqi 8ydrocarbon Reserves and Production..................................................................'9 3ependence on /7tractives Revenues.............................................................................. ':he +/ner2y .i7+................................................................................................................ '9

Generic Oil and Gas Terms

Resource Curse................................................................................................................... 9' 3efinition of 8ydrocarbon Reserves................................................................................ 94 #il Field 3epletion.............................................................................................................. 9/nhanced #il Recovery $/#R%........................................................................................... 99 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 Frame ork

#vervie< of Re2ulatory Frame<or= in Iraq.................................................................... 49 :ypes of #il Contracts........................................................................................................ 49 :reatment of #il in Iraq+s &!!* Constitution................................................................... 47 8ydrocarbon Le2islation in Iraq....................................................................................... 4Oil and Gas Licensing Round Iraq+s First Licensin2 Round $&!!9%.................................................................................. 7 Iraq+s )econd Licensin2 Round $&!!9%.............................................................................. 7' 3

Iraq+s :hird Licensin2 Round $&! !%................................................................................ 79 Iraq+s Fourth Licensin2 Round $&! &%.............................................................................. 74

Regional !ynamics
Iran,Iraq.............................................................................................................................. 79 )audi Arabia,Iraq............................................................................................................... -& 5u<ait,Iraq......................................................................................................................... -' :ur=ey,Iraq......................................................................................................................... -4 :he +)outhern Corridor+ 6as :ransit Route to /urope...................................................-9

International Entities
#peratin2 /nvironment in Iraq........................................................................................ 9' >P......................................................................................................................................... 99 Chevron Corporation......................................................................................................... 97 China "ational #ffshore #il Corporation $C"##C%.........................................................99 China "ational Petroleum Corporation $C"PC%............................................................ ! 3"# International............................................................................................................ !9 3ra2on #il......................................................................................................................... !4 /ni...................................................................................................................................... !7 /77on.obil....................................................................................................................... ! 6a?prom............................................................................................................................ 9 6enel /ner2y..................................................................................................................... 4 8erita2e #il....................................................................................................................... 9 8unt #il............................................................................................................................. &! Inpe7................................................................................................................................. && @apan Petroleum /7ploration Company $@ape7%........................................................... &' 5a?.unai6as $5.6%........................................................................................................ &* 5o2as $5orea 6as Corporation%....................................................................................... &4 5u<ait /ner2y Company................................................................................................. &9 Lu=oil................................................................................................................................. ' .arathon #il Corporation............................................................................................... '' #ccidental Petroleum...................................................................................................... '* Pa=istan Petroleum.......................................................................................................... '7 Petronas............................................................................................................................ ')hell................................................................................................................................... 9! )onan2ol........................................................................................................................... 9' )tatoil................................................................................................................................ 9* :alisman /ner2y............................................................................................................... 97 :otal.................................................................................................................................. 9:Ar=iye Petrolleri Anonim #rta=lBCB $:PA#%................................................................. * Companies <ith contracts <ith the 5R6....................................................................... *9

Iraqi Entities
Ministry and its operating companies # inistry of #il.................................................................................................................. )tate #il .ar=etin2 #r2anisation $)#.#%..................................................................... Petroleum Contracts and Licensin2 3irectorate $PCL3%.............................................. "orth #il Company $"#C%............................................................................................... 4 *7 **9 4!

)outh #il Company $)#C%................................................................................................ Iraq 3rillin2 Company $I3C%............................................................................................ .aysan #il Company $.#C%............................................................................................ #ther Iraqi /ntities.......................................................................................................... Other Iraqi actors Iraqi .inistry of Finance................................................................................................. Central >an= of Iraq $C>I%............................................................................................... Iraqi Prime .inister+s #ffice........................................................................................... 5urdistan Re2ional 6overnment $5R6%.........................................................................

4 4& 4' 49 47 449 7! 7' 7* 74 77 779 79 -! -' -' -9 -* -* -4 --

Key In"rastructure

#vervie< of Infrastructure in Iraq................................................................................. Refineries >aiDi Refinery.................................................................................................................... >asra Refinery.................................................................................................................. 3aura Refinery................................................................................................................. /rbil Refinery................................................................................................................... Terminals 5hor al,Amaya #il :erminal $5AA#:%........................................................................... >asra #il :erminal $A>#:%.............................................................................................. 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.......................................................................................... /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............................................................................................................. &!9 .iddle Furat #il Fields.................................................................................................... &!* "ahr >in 0mar #il Field.................................................................................................. &!4 5

"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 Field.............................................................................................................. & 7 :a<=e #il Field................................................................................................................. & 9 #isputed fields 5ir=u= #il Field................................................................................................................ & 9

Resource Trans#arency O##ortunities

:ransparency of Contracts.............................................................................................. &&' "atural Resource Charter $"RC%..................................................................................... &&9 /7tractive Industries :ransparency Initiative $/I:I%....................................................&&4 Publish (hat Fou Pay $P(FP%........................................................................................ &'' Revenue (atch Institute $R(I%...................................................................................... &'9 6lobal (itness.................................................................................................................. &'4 :ransparency International............................................................................................ &'7

!irectories
Iraq 3irectory of Contacts............................................................................................... &9 Iraq #il Industry Listin2s................................................................................................. &9*

List of Abbreviations
ABOT boe BOR bp !B" !O$% !(A *$" %"A %"T" $O.! $T( .+O% "%A "$O+ "/$ "0O! "O! "OT! "(! "T( 1AAOT 1R. 20. 2(. /R! al-Basra Oil Terminal barrels of oil equivalent Baiji Oil Refinery barrels per ay !entral Ban# of "raq "raqi !ommittee of $inan&ial %'perts !oalition (rovisional Aut)ority *evelopment $un for "raq +, %ner-y "nformation A ministration %'tra&tive "n ustries Transparen&y "nitiative $e eral Oil an .as !oun&il $inal Ten er (roto&ol .eneral +nion of Oil %mployees "nternational %ner-y A-en&y "raqi $e eration of Oil +nions "nternational /onetary $un "raq 0ational Oil !ompany "nternational oil &ompany "raqi Oil Tan#ers !ompany "raq (etroleum !ompany "nitial Ten er (roto&ol 1)or al-Amaya Oil Terminal 1ur istan Re-ional .overnment 2iquefie 0atural .as 2iqui (etroleum .as /i lan Refineries !ompany

0.! 0O! 0R! O%! O(%! (!2* (11 (R*! (,A (,! (+1 (49( R4" ,!O( ,.! ,O/O ,(/ ,R! t&f t&m T" T,! TT,$ +0

0ort) .as !ompany 0ort) Oil !ompany 0atural Resour&e !)arter "raqi Oil %'ploration !ompany Or-anisation of (etroleum %'portin- !ountries (etroleum !ontra&ts an 2i&ensin- *ire&torate 1ur istan 4or#ers5 (arty 6Tur#ey7 (etroleum Resear&) 8 *evelopment !enter (ro u&tion ,)arin- A-reement (ro u&tion ,)arin- !ontra&t (atrioti& +nion of 1ur istan (ublis) 4)at 9ou (ay Revenue 4at&) "nstitute ,tate !ompany of Oil (roje&ts ,out) .as !ompany ,tate Oil /ar#etin- Or-anisation ,in-le point moorin,out) Refineries !ompany trillion &ubi& feet trillion &ubi& metres Transparen&y "nternational Te&)ni&al servi&e &ontra&t Trainin-: Te&)nolo-y an ,&)olars)ip $un +nite 0ations

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History and Context

Rise and Fall of the Iraq Petroleum Company
T)e "raq (etroleum !orporation 6"(!7 =as a &onsortium of major 4estern oil &ompanies =)i&) )el a monopoly on all "raqi pro u&tion from t)e be-innin-s of t)e in ustry until 1<62: an &ontinue to ominate pro u&tion until nationalisation in t)e early 1<3>s?1

Foundation
T)e &ompany =as foun e in 1<12 as t)e Tur#is) (etroleum !ompany 6T(!7: so &alle be&ause alt)ou-) it =as forme to prospe&t for oil insi e "raq: "raq =as t)en a provin&e of t)e Ottoman Tur#is) empire?2 T)e lar-est s)are)ol er in t)e &ompany =as t)e An-lo-(ersian Oil !ompany: an ante&e ent of to ay5s B(: at t)e time &ontrolle ire&tly by t)e Britis) -overnment?3 Ot)er major s)are)ol ers on its &reation =ere ,)ell an Armenian oil ma-nate !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 4orl 4ar bro#e out: &easin- all e'ploration 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 4orl 4ar? 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 man ate after t)e &ollapse of t)e Ottoman %mpire: -rante a fres) &on&ession to t)e T(!? A&&or in- to Re' @e alis of t)e +niversity of Tulsa: t)e mo ern )istory of oil an -as in "raq be-ins =it) t)is a-reement?5 T)is &on&ession &overe t)e =)ole of t)e /osul an Ba-) a provin&es: &onstitutin- most of "raq but e'&lu in- t)e sout)ern Basra provin&e? At t)e time t)e s)are)ol ers in t)e T(! =ere t)e An-lo-(ersian Oil !ompany =it) 45 per1 5"raq5s Oil ,e&torA (ast: (resent an $uture5: James Baker Institute for Public Policy: /ar&) 2>>3 2 5T)e Tur#is) (etroleum !ompany5: US Library of Congress: retrieve 4 Banuary 2>13? 3 5$rom An-lo-(ersian Oil to B( Amo&o5: BBC: 11 Au-ust 1<<;? 4 5"raq (etroleum !ompany Ar&)ive5: Archives Hub: retrieve 13 Banuary 2>12? 5 @e alis: Re' 5 T)e 2e-al *imensions of Oil an .as in "raq5: Cambridge University Press: 0ovember 2>><?

1>

&ent: Royal *ut&)-,)ell =it) 22?5 per&ent: t)e !ompa-nie $ran&aise es (etroles =it) 25 per&ent: an !alouste .ulbe#ian =it) 5 per&ent? "n 1<23 oil =as stru&# at Baba .ur -ur: just outsi e 1ir#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 pro u&in- =ells )a been &omplete ? "n Buly 1<2; t)e Ameri&ans: un er t)e 0ear %ast *evelopment !orporation: =ere allo=e into t)e &on&ession: ta#in- some of An-lo-(ersian5s s)are to )ol a 23?35 per&ent sta#e:6 an in 1<2< t)e T(! reor-anise itself as t)e "raq (etroleum !ompany 6"(!7?3 A&&or in- to Bo)n Blair5s boo# 5!ontrol of Oil5: t)e +, an +1-base &ompanies in t)e T(! &onsortium eliberately )el o=n pro u&tion in t)eir "raq &on&essions in or er to ma'imise t)eir =orl =i e 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 ne-otiations over pipelines an e'port routes? Alt)ou-) t)e 1<25 &on&ession &overe most of "raq: t)e "(! limite its pro u&tion to fiel s &onstitutin- only one-)alf of 1 per&ent of t)e &ountry5s total area? By 1<5> t)e only fiel bein- evelope =as 1ir#u# an only t)en i &ommer&ial pro u&tion in substantial quantities be-in 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 Or-anisation of (etroleum %'portin- !ountries 6O(%!7 =as establis)e in Ba-) a : t)e "raqi -overnment revo#e t)e "(!5s &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 6"0O!7 =as &reate in 1<64: leavin- t)e &ountry in t)e unusual situation of )avin- t=o pro u&tion tra&#s =)i&) =ere in &ompetition =it) ea&) ot)er? At t)e time t)e "(! an its subsi iaries t)e /osul (etroleum !ompany an t)e Basra (etroleum !ompany =ere still responsible for t)e vast majority of "raqi pro u&tion:< =)i&) by t)e 1<6>s =as rea&)in- 1 million barrels per ay 6bp 7? "n t)e late 1<6>s: "raq si-ne a series of eals =it) ot)er forei-n &ompanies: notably %ntreprise es Re&)er&)es et es A&tivites (etrolieres 6%RA(7: for offs)ore areas in sout)ern "raq: an t)e ,oviet +nion un er t)e "raq-,oviet pa&t of 1<63 =)i&) eventually le to t)e evelopment of t)e Rumaila fiel 1>? /ean=)ile relations bet=een t)e -overnment an t)e "(! &ontinue to eteriorate? 4)en ,yria raise transit fees on t)e Banias pipeline in 1<66: t)e "(! refuse to pay:
6 Bamber-: Bames 5 T)e Cistory of t)e Britis) (etroleum !ompanyA Dolume 25: Cambridge University Press: 1<<4? 3 @e alis: Re' 5 T)e 2e-al *imensions of Oil an .as in "raq5: Cambridge University Press: 0ovember 2>><? ; 5"raq an t)e Battle for Oil? A Cistori&al "nsi-)t5: lobal !esearch: 13 /ay 2>11? < 5"raq5s Oil ,e&torA (ast: (resent an $uture5: !evenue "atch Institute: retrieve 34 Banuary 2>13? 1> 5"raq - (ost 4orl 4ar "" T)rou-) t)e 1<3>s5: US Library of Congress: retrieve 4 Banuary 2>13?

11

t)e ,yrians &lose t)e pipeline an t)e "raqi -overnment lost a lot of revenue? 4)en t)e ,ueE !anal =as &lose as a result of t)e 1<63 /i le %ast 4ar: t)e -overnment eman e a premium on oil arrivin- ire&tly at t)e /e iterranean by pipeline t)at =as &omparable to rates pai to 2ibya? T)e "(! refuse : respon in- t)at "raqi oil =as a )eavier -ra e an more e'pensive to pro&ess? "(! &ontinue to &ontrol t)e &ore of "raqi pro u&tion but t)e -overnment maintaine its po=er by at one sta-e in&reasintransit fees t)rou-) Basra port overni-)t by 12>> per&ent? 11 "n 1<3> t)e "(! =as fully nationalise ?<

Iraq National Oil Company INOC!

"raq5s state-o=ne oil &ompany t)e "raqi 0ational Oil !ompany 6"0O!7 =as foun e in 1<64 an too# over all aspe&ts of t)e in ustry after nationalisation of t)e "raq (etro leum !ompany until it =as issolve by t)e -overnment of ,a am Cussein in 1<;3 into its subsi iary operatin- &ompanies?12 $rom 2>>3 on=ar s: various pie&es of le-islation =ere put before t)e "raqi parliament 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 in ustry: =)i&) at t)e time =as still ominate by 4estern majors: in&lu in- t)e lea in- &onsortium in "raq at t)e time: t)e "raq (etroleum !ompany 6"(!7? T)e "0O! =as -rante e'&lusive ri-)ts un er "raqi la= to evelop oil &on&essions in t)e <<?5 per&ent of territory t)at )a been e'propriate from t)e "(! by 2a= ;> 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<63 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 a-reements =it) e'perts from &ountries outsi e 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 in ustry in sta-es bet=een 1<61 an 1<35 left t)e "0O! as sole operator in "raq? T)e &ompany mana-e to in&rease pro u&tion from 1?4 million barrels per ay 6bp 7 in 1<34 to 3 million bp in 1<;>: alt)ou-) pro u&tion =as t)en )it by t)e outbrea# of =ar =it) "ran?14 But just as it -aine sole &ontrol over t)e in ustry: t)e "raqi -overnment impose more politi&al &ontrol? A la= in 1<36 ma e t)e Oil /inister: a politi&al appointee:
11 5"raqi oil post-4orl 4ar "" T)rou-) t)e 1<3>s5: US Library of Congress: un ate ? 12 5"raq5s Oil ,e&torA "ssues an Opportunities5: James Baker Institute for Public Policy: *e&ember 2>>6? 13 5!reation of "raq national oil &ompany not essential5: Saudi a#ette: retrieve 4 Banuary 2>13? 14 5B( ,tatisti&al Revie= 2>1>5: BP: retrieve 13 Banuary 2>12?

12

&)airman of t)e boar of t)e &ompany =)ile anot)er la= in 1<3< remove all finan&ial in epen en&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- bu -et by t)e -overnment15? +pon nationalisation of t)e "(!: t)e "0O! also too# over t)e "(! subsi iaries t)e /osul (etroleum !ompany an t)e Basra (etroleum !ompany: =)i&) to-et)er be&ame t)e ,out) Oil !ompany 6,O!7? But a series of Ba5at) (arty e&rees in t)e 1<;>s establis)e a ran-e of ne= re-ional operatin- &ompanies =)i&) reporte ire&tly to t)e Oil /inistry: bypassin- t)e "0O!?15

Dissolution in &'()
"raq5s oil in ustry =as )it imme iately =)en =ar bro#e out bet=een "ran an "raq in 1<;>? %'port fa&ilities at Basra an 1)or al-Amaya =ere ama-e in t)e first =ee#s? As a result: t)e "0O!5s ener-ies in t)e 1<;>s =ere &on&entrate on buil in- ne= e'port &apa&ity: su&) as e'pan in- t)e 1ir#u#-!ey)an Oil (ipeline an buil in- t)e "(,A pipeline a&ross ,au i Arabia? "n a ition: t)e &ompany tru&#e up to 25>:>>> bp t)rou-) Bor an an Tur#ey?16 "n April 1<;3: un er ne=ly appointe Oil /inister "ssam !)alabi: *e&ree 263 mer-e t)e "0O! =it) t)e Oil /inistry: =)i&) be&ame t)e ire&t operator in t)e in ustry as =ell as its re-ulator? "ts subsi iaries =ere no= bro#en off into 0ort) Oil !ompany 60O!7: ,out) Oil !ompany 6,O!7 an t)e Oil %'ploration !ompany 6O%!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&lu informer Oil /inister "bra)im Ba)r al-+loum 13: former "0O! foun in- &)airman Tareq ,)afiq amon- ot)ers?

Nationalisation of Iraqi Oil Industry

"raq -ra ually too# &ontrol of its o=n oil in ustry from international oil &ompanies 6"O!s7 in a pro&ess =)i&) be-an in 1<61 an en e in 1<35 =it) t)e &omplete national isation of all assets an pro u&tion in t)e &ountry?1;

15 5"raq 0ational Oil !ompany: An Cistori&al An (oliti&al (erspe&tive5: (iddle )ast )conomic %igest: 21 ,eptember 2>><? 16 5"raq - Oil in t)e 1<;>s5: US Library of Congress: retrieve 4 Banuary 2>13? 13 5"ntervie= =it) "bra)im Ba)r al-+loum5: *i'ash: retrieve 25 Buly 2>1>? 1; 5"raq5s Oil ,e&torA (ast: (resent an $uture5: James Baker Institute for Public Policy: /ar&) 2>>3?

13

Prelude
$rom 1<61: =)en t)e revolutionary re-ime of Ab el 1arim Fassim passe a la= eprivin- t)e "raq (etroleum !ompany 6"(!7 of t)e ri-)t to prospe&t in <<?5 per&ent of "raqi territory: "raq envisa-e t)e &reation of a nationally o=ne an run oil in ustry? T)e &reation of t)e "raq 0ational Oil !ompany 6"0O!7 in 1<64 &onfirme t)is: even if t)e "0O! =as ori-inally set up =it) limite po=ers? 15

+#propriation of IPC assets

*urin- t)e late 1<6>s an early 1<3>s "raq &ontinue to be issatisfie =it) t)e =ay t)e "(! mana-e pro u&tion levels in "raq base on t)eir &ommer&ial interests else=)ere: an t)ere =ere various isputes about pri&in- 1<? "raq also eman e a 2> 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 envisa-e but =)i&) t)e international partners in t)e "(! )a enie t)em?2> On t)e ba&# of t)e risin- ti e of e&onomi& nationalism in "raq an more broa ly a&ross t)e /i le %ast: t)e "(! offere in /ay 1<32 to in&rease t)e "raqi state5s profits: raise pro u&tion: an a-ree to some a van&e payments on royalties? 21 But t)e offers i not prove enou-) an on t)e 1 Bune 1<32 t)e "raqi -overnment e'propriate all of t)e "(!5s assets in "raq? ,a am Cussein: t)en formally vi&e-presi ent to A)me Cassan alBa#r: le t)e nationalisation pro&ess for t)e Ba5at) (arty? 22 Only t)e parent &ompany "(! =as affe&te by t)is move? 0eit)er t)e /osul nor t)e Basra) &ompanies =ere in &lu e ?23 "n 1<33: "raq an t)e "(! settle t)eir &laims an &ounter-&laims? T)e "(! a-ree 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 a-ree to provi e t)e "(! =it) 15 million tons of 1ir#u# &ru e free of &)ar-e: value at t)e time at over G3>> million: in a final settlement of "(! &laims? T)e /osul (etroleum !ompany surren ere its &on&ession to t)e -overnment?23

Nationalisation of the ,asra Petroleum Company

%ven follo=in- t)e outbrea# of t)e 1<33 9om 1ippur =ar: "raq i not nationalise t)e entire Basra (etroleum !ompany 6B(!7? On t)e 3 O&tober t)e -overnment announ&e t)at it )a nationalise t)e s)ares of t)e Ameri&an &ompanies 6%''on an /obil7 in retaliation for t)e +nite ,tates5 support of "srael: an later t)at mont) it also nation 1< 5(ost-4orl 4ar "" T)rou-) t)e 1<3>s5: US Library of Congress: retrieve 4 Banuary 2>13? 2> 5"raq - t)e Tur#is) (etroleum !ompany5: US Library of Congress: retrieve 4 Banuary 2>13? 215T)e 0ationaliEation of t)e "raqi (etroleum !ompany5: International Journal of (iddle )ast Studies: 2< Banuary 2>><? 22 Aburis): ,ai 5 ,a am Cussein: t)e (oliti&s of Reven-e5: Bloomsbury U+, 2>>123 ,)=a ran: Benjamin 5 /i le %ast OilA "ssues an (roblems5: Schenkman Publishing : 1<33?

14

alise t)e s)ares of Royal *ut&) ,)ell for similar reasons? Co=ever in *e&ember 1<35 (resi ent Ba#r announ&e t)e &omplete ta#eover of forei-n 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 en ure t)ree major =ars 24 an stri&t e&onomi& san&tions bet=een 1<<> an 2>>3?25 "raq5s oil infrastru&ture =as ama-e in t)e "ran-"raq 4ar of t)e 1<;>s: t)e .ulf 4ar 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 &ountry5s ability to e'port oil26 an -ain a&&ess to t)e latest te&)nolo-y to evelop its fiel s? 23 T)e &ombine effe&t of =ars an san&tions )ave resulte in ramati& flu&tuations in "raq5s oil pro u&tion an e&onomi& involvement in t)e =orl mar#et?26

Iran.Iraq -ar &'(/.&'((

"raq5s oil pro u&tion rea&)e its all-time pea# of 3?5 million barrels per ay 6bp 7 in 1<3< prior to its invasion of "ran: but t)e =ar )a a qui&# an ebilitatin- impa&t on "raq5s pro u&tion &apability?26 "raq5s t=o primary offs)ore e'port terminals on t)e (ersian .ulf: /ina al Ba#r an 1)a=r al Amaya): as =ell as t)e Basra refinery: =ere severely ama-e by "ranian atta&#s in t)e openin- =ee#s of t)e &onfli&t? 2; T)e estru&tion of "raq5s (ersian .ulf terminals &ause it to rely e'&lusively on pipelines to t)e /e iterranean for e'ports?2< T)en in 1<;2 ,yria: allie =it) "ran: &lose t)e 65>:>>> bp Banias pipeline: =)i&) )a been a vital "raqi a&&ess route to t)e /e iterranean ,ea an %uropean oil mar#ets: 3> leavin- "raq =it) only t)e pipeline to *ortyol in Tur#ey?31 Oil pro u&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: "raq5s e'port &apabilities =ere only 3>>:>>> bp : or less t)an 3> per&ent of operable fiel pro u&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&&or in- to aut)or %fraim 1ars): ,a am 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 5"raq profile5: BBC: retrieve 2; 0ovember 2>11? 25 54ere ,an&tions Ri-)tH5: *e& .ork /imes: retrieve 23 Buly 2>>3? 26 5!R, Report for !on-ress5: US Library of Congress: 23 ,eptember 2>>4? 23 5(layin- for "raq5s ja&#pot5: C** (oney 16 April 2>>3? 2; 5Oil in t)e 1<;>s5: US Library of Congress: retrieve 2< 0ovember 2>11? 2< %l AE)ary: /?,?5 T)e "ran-"raq =arA an )istori&al: e&onomi&: an politi&al analysis5: !outledge: 1<;4? 3> 5"ran-"raq 4ar 61<;>-1<;;75: lobal Security: retrieve 12 *e&ember 2>11? 31 %l AE)ary: /?,?5 T)e "ran-"raq =arA an )istori&al: e&onomi&: an politi&al analysis5: !outledge: 1<;4? 32 5!R, Report for !on-ress5: US Library of Congress: 23 ,eptember 2>>4? 33 5"ran-"raq 4ar 61<;>-1<;;75: 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 1u=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 ama-e to "raqi an "ranian s)ippin- &apability an t)at of ot)er .ulf states: an re u&e s)ippin- in t)e .ulf by 25 per&ent by 1<;4? 33 4)ile ama-e to oil installations bot) in "raq an "ran =as e'tensive: some observers: su&) as %l AE)ary: )ave su--este t)at t)e real ama-e to "raqi an "ranian oil se&tors &ame in t)e form of lost revenue?36 T)e =ar eplete "raq5s forei-n e'&)an-e reserves: evastate its e&onomy: an left t)e &ountry sa le =it) forei-n ebt of more t)an +, G4> billion:33 parti&ularly to ,au i Arabia an 1u=ait? By 1<;;: "raq )a to rely on a s)rin#in- sour&e of oil revenue =)i&) -enerate only G11 billion: &ompare =it) G26 billion in 1<;>?3;

Persian 0ulf -ar &''&

After "raq inva e 1u=ait in Au-ust 1<<>: a +, an +1-le &oalition initiate a massive aerial &ampai-n a-ainst t)em in Banuary 1<<1? 0early a mont) of air stri#es 3< tar-ete primarily "raq5s ele&tri&ity an fuel pro u&tion infrastru&ture: 4> roppinaroun 12>> tons of bombs to s)ut o=n t)e national refinin- an istribution system?41 "raq5s t)ree bi--est refineries: Baiji: Basra an *oura: =ere all bombe in t)e &o alition air &ampai-n:42 as =as t)e strate-i& $a= peninsula: site of t)e 1)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 &ampai-n =ipe out many of "raq5s oil fa&ilities 3; an appro'imately ;> per&ent of its refinin- &apa&ity =as ama-e ? 41 A itionally: more t)an )alf of "raq5s 2> ele&tri&al -enerator sites =ere &ompletely estroye :4> ren erin- its remainin- unbombe assets ysfun&tional:43 an 42 of its 53 bri -es =ere ren ere impassible?44

%anctions &''/.1//2
"raq =as un er san&tions impose by t)e +nite 0ations ,e&urity !oun&il 6+0,!7 from Au-ust 1<<>: =)en "raq inva e 1u=ait: until /ay 2>>3: after ,a am Cussein5s re34 1ars): %fraim 5 T)e "ran-"raq 4ar: 1<;>-1<;;5: 0s1rey Publishing: 2>>2? 35 5Tan#er 4ar 1<;4-1<;;5: (ilitary History )ncyclo1edia: 23 O&tober 2>>2? 36 %l AE)ary: /?,?5 T)e "ran-"raq =arA an )istori&al: e&onomi&: an politi&al analysis5: !outledge: 1<;4? 33 5"raqA %&onomy5: /%S: retrieve 12 *e&ember 2>11? 3; 5"raqA e&onomi& san&tions an &onsequen&es: 1<<>J2>>>5: /hird "orld 2uarterly: < Au-ust 2>1>? 3< Tu&#er: ,pen&er5 T)e %n&y&lope ia of /i le %ast 4ars5: ABC3CLI0: 2>1>? 4> 5Cyper=ar - t)e le-a&y of *esert ,torm5: 4ederation of American Scientists: retrieve 12 *e&ember 2>11? 41 5!)apter D" - t)e air &ampai-n5: 4ederation of American Scientists: retrieve 12 *e&ember 2>11? 42 .)areeb: % mun an *ou-)erty: Bet): 5 Cistori&al i&tionary of "raq5: Scarecro& Press: 2>>4? 43 5"raqA e&onomi& san&tions an &onsequen&es: 1<<>J2>>>5: /hird "orld 2uarterly < Au-ust 2>1>? 44 5Cyper=ar - t)e le-a&y of *esert ,torm5: 4ederation of American Scientists: retrieve 12 *e&ember 2>11?

16

-ime )a been topple ? A&&or in- to 4oreign Affairs ma-aEine t)e san&tions =ere t)e lon-est 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&lu e a ban on all tra e: an oil embar-o: a freeEin- of "raqi -overnment finan&ial assets abroa : an arms embar-o: 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&#a es a-ainst "raq?43 %&onomi& impa&ts in&lu e : but =ere not limite toA e&rease imports of in ustrial an &ommer&ial parts an fuel: e&rease e'ports an a&&ess to forei-n &urren&y: loss of tra e partners lea in- to t)e &losure of business an in ustry: inflation: emer-en&e of bla&# 6parallel7 mar#ets: e&rease overall e&onomi& a&tivity 6in ustry: &ommer&e: a-ri&ulture: et&7: an t)e &ollapse of publi& an private infrastru&ture? ,an&tions also too# a lar-e )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 Be-innin- in 1<<6: t)e +nite 0ations implemente its Oil-for-$oo (ro-ram: =)i&) allo=e "raq to sell oil to finan&e t)e pur&)ase of )umanitarian -oo s? "raq =as permitte to sell G2 billion =ort) of oil every si' mont)s: =it) t=o-t)ir s of t)at amount to be use to meet )umanitarian nee s? "n 1<<; t)e limit on t)e level of "raqi oil e'ports un er t)e pro-ram =as raise to G5?26 billion every si' mont)s: an in *e&ember 1<<< t)e &eilin- on "raqi oil e'ports un er t)e pro-ram =as remove ? 43 T)e pro-ram ma e available vast fun s for t)e pur&)ase of foo : me i&ine: an essential &ivilian -oo s an G24?4 billion =ort) of -oo s =ere elivere to "raq from t)e pro-ram5s in&eption until 0ovember 2>>2?45

3%.led invasion 1//2

"raqi oil installations suffere little ama-e urin- t)e 2>>3 +,-le invasion of "raq: =it) an estimate nine =ells set on fire? But oil infrastru&ture =as tar-ete for atta&# by insur-ents an smu--lers on many o&&asions in t)e invasion5s imme iate aftermat) an in t)e follo=in- years?4;4< "n a ition: as most of "raq5s po=er is -enerate from oil: =it)out a stea y 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 1ir#u#-!ey)an oil pipeline: =)i&) impa&te t)e -overnments ability to -ain e'port revenues? ,out)ern pipeline infrastru&ture =as also tar-ete as a means of ma#in- oil an refine pro u&ts more vulnerable to t)eft an iversion? Ci-)ly-or-anise smu--lin45 5!ontainin- "raqA ,an&tions 4or#e 5: 4oreign Affairs: Buly-Au-ust 2>>4? 46 5%ffe&ts of "raq ,an&tions5: lobal Issues: 2 O&tober 2>>5? 43 5About t)e Oil-for-$oo (ro-ramme5 :U*: retrieve 13 *e&ember 2>11? 4; 5"raqA Oil an .as 2e-islation: Revenue ,)arin-: an +?,? (oli&y5: US Congressional !esearch Service: 3 0ovember 2>><? 4< 5"raq (ipeline 4at&)5: Institute for the Analysis of lobal Security: 23 /ar&) 2>>;? 5> 5"raq5s Oil ,e&tor One 9ear After 2iberation5: Brookings Institution: 13 Bune 2>>4?

13

operations levera-e 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 3> 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 yearK 4; 6see also 0il /heft in Ira'7? T)e sabota-e of "raq5s net=or# of pipelines serve to &reate an in)ospitable environment for international oil &ompanies 6"O!s7: lea in- 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 6(%@s7: establis)e in 2>>3 in or er 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 "raq5s 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&&or in- to in ustry analyst *aniel 9er-in: in 2>>3 t)e "raqi oil in ustry =as sufferin- from years of ne-le&t an la&# of investment: as =ell as &)aoti& mana-ement follo=in- t)e &ollapse of t)e Ba5at)ist re-ime? At t)is sta-e: of ;> is&overe oil fiel s only 23 )a been put into pro u&tion ue to t)e isruption of =ar an san&tions in pla&e sin&e t)e 1<;>s? T)amir .)a )ban 6=)o be&ame )ea of t)e /inistry of Oil7 an ()ilip !arroll 6former !%O of ,)ell Oil +,A7 be&ame t)e &ore of t)e team &)ar-e =it) revivin- t)e in ustry? T)e t=o men set a tar-et of rea&)in- a pro u&tion level of 3 mil lion barrels per ay 6bp 7 by t)e en of 2>>4? !arroll state t)at t)e ur-ent priority for t)e restoration of t)e oil in ustry an t)e rest of t)e e&onomy must be se&urity? 53 As t)e anti-Ameri&an insur-en&y be-an to intensify an t)e se&urity situation eteriorate : oil in ustry infrastru&ture also &ame un er atta&#? (ipelines =ere re-ularly bombe from 2>>3 on=ar s54 an in 2>>4: insur-ents mounte an atta&# a-ainst t)e Al-Amiya platform usin- sui&i e bombers in t)ree small &rafts: =)i&) rea&)e =it)in 3> yar s of t)e installation before t)ey =ere s)ot by "raqi -uar s? 55 $rom t)e fall of ,a am up until 2>>;: t)ere =ere =ell over 3>> in&i ents affe&tin- t)e inte-rity of oil fa&ilities: an oil pro u&tion remaine belo= tar-et levels? (ro u&tion fell s)ort of t)e -oals set an t)e ne= -oal for oil pro u&tion by 2>>3 =as roppe in 2>>6 to 2?1 million bp ?56

51 5"raqi oil pipeline prote&tion earns a=ar for +?,? %n-ineer5: UPI: < /ar&) 2>><? 52 5+, military =in s o=n "raq =it) ra=al5: Al Ja#eera: ; *e&ember 2>11? 53 9er-in: *aniel: 5T)e Fuest5: Penguin Press: 2on on: 2>11? 54 5"raq (ipeline 4at&)5: IA S: retrieve 24 0ovember 2>11? 55 5"raq oil )opes )in-e on s)iel in- in ustry5: )nergy %aily ; O&tober 2>1>? 56 !or esman: Ant)ony an *avies: %mma 5 "raq5s insur-en&y an t)e roa to &ivil &onfli&t5: 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 6+0,!7 passe Resolution 14;3: abolis)in- san&tions a-ainst "raq an re&o-niEin- t)e +, an t)e +1 as t)e &ountry5s o&&upyin- po=ers?53 On t)e 2> ,eptember 2>>3: Or er 3< =as issue by (aul Bremer: )ea of t)e !oalition (rovisional Aut)ority 6!(A7: t)e transitional -overnment establis)e by t)e +, an its allies follo=in- t)e invasion of "raq? T)is or er abolis)e "raq5s ban on forei-n investment: allo=in- forei-ners to o=n up to 1>> per&ent of all se&tors ot)er t)an natural resour&es? Over 2>> state enterprises: in&lu in- ele&tri&ity: tele&ommuni&ations an p)arma&euti&als =ere privatiEe ?5; +n er 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 : ru-s: boo#s an ot)er 5)umanitarian5 imports? 5< T)e reforms implemente =ere es&ribe by 4orl Ban# e&onomist Bosep) ,ti-litE as Lan even more ra i&al form of s)o&# t)erapy t)an pursue in t)e former ,oviet =orl ?K6> an "raq =as bran e by t)e )conomist ma-aEine as a 5&apitalist ream5?5< BB! &orrespon ent 0i&# ,prin-ate =arne at t)e time t)at many "raqis may see t)e moves to privatiEe as a 5sell-off5: =it) +, multinationals seen to -et t)e majority of t)e 5re=ar s5? Co=ever +, Treasury ,e&retary Bo)n ,no= reje&te t)e su--estion t)at t)e +, ominate t)e raftin- of reforms: assertin- t)at t)ey =ere base on t)e i eas of t)e "raqi .overnin- !oun&il?61 As of Bune 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 mo ernisation: but en e its ire&t involvement in t)e first quarter of 2>>;? A&&or in- to reports by +, -overnment a-en&ies an international or-anisations: lon--term "raq re&onstru&tion &osts &oul rea&) +, G1>> billion or )i-)er?62

Proposed ne$ le5islation

,ee alsoA Hydrocarbon Legislation in Ira'"n $ebruary 2>>3 t)e +,-ba&#e "raqi &abinet approve t)e first raft of a ne= Oil an .as 2a= =)i&) =oul -ive forei-n &ompanies t)e lon--term &ontra&ts an safe le-al 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 forei-n 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)ir s of "raq5s #no=n reserves =oul be evelope by multinationals un er &ontra&ts lastin- for 15 to 2>
53 5Resolution 14;35: U* Security Council, 22 /ay 2>>3? 5; 5!oalition (rovisional Aut)ority Or er 0umber 3<5: Ira' Coalition: retrieve 25 0ovember 2>11? 5< 52et5s all -o to t)e yar sale5: )conomist: 25 ,eptember 2>>3? 6> 5Ba-) a 9ear @ero5: Har1ers: ,eptember 2>>4? 61 5"raq a opts s=eepin- reforms5: BBC: 21 ,eptember 2>>3? 62 5*oin- Business in "raq5: US Commercial Service: 2>12?

1<

years? T)is =oul represent a brea# from normal pra&ti&e in t)e /i le %ast: a&&or in- to "(,: an &ivil so&iety -roups an union lea ers &omplaine t)at t)ey )a been left out of t)e raftin- pro&ess? !riti&s &laime t)at un er 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# )y ro&arbons la= )a yet been passe for "raq? T)e prospe&t of t)e privatiEation of "raq5s oil in ustry =as parti&ularly oppose by tra e unions in o&&upie "raq: an =as es&ribe by /he uardian as Ia re lineI for t)e unions an a Ire ra-I 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 le-islation =oul lea "raq5s oil in ustry to full privatisation: in $ebruary 2>>3 t)e labour unions sent a letter to "raqi (resi ent Balal Talbani ur-in- )im to re&onsi er t)e Oil 2a= raft: &ommentin- t)at Ipro u&tion-s)arin- a-reements are a reli& of t)e 1<6>s??? t)ey =ill re-imprison t)e "raqi e&onomy an impin-e on "raq5s soverei-nty sin&e t)ey only preserve t)e interests of forei-n &ompanies?I Offi&ials from t)e "raqi -overnment efen e 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 re-ional a ministrations =oul )ave t)e aut)ority to ne-otiate &ontra&ts =it) international oil &ompanies? 63

Licensin5 rounds 1//'.1/&1

6$or furt)er etail: see separate arti&les on in ivi ual bi in- roun s7? Cussein ,)a)ristani: a nu&lear s&ientist by trainin- =)o )a been imprisone urinCussein5s re-ime: returne from e'ile in !ana a an =as appointe as Oil /inister in 2>>6? Ce =as to oversee up&omin- bi in- roun s an =as eeme by Ira' )nergy *e&s as t)e 5ar&)ite&t of "raq5s oil future5? 65 +n er )is man ate: from 2>>< on=ar s "raq )el a series of open bi in- roun s for oil &ontra&ts: be-innin- =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 forei-n &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 )an ful of 4estern &ompanies: in&lu in- !)evron: %''on/obil: Total an B(?66 T)e &ontra&ts on offer at t)e bi in- roun s =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? 63

6350e= Oil 2a= ,een as !over for (rivatisation5: IPS: 23 $ebruary 2>>3? 64 5Oil an trouble =aters5: uardian: < Buly 2>>;? 65 5,)a)ristani: Ar&)ite&t of "raq5s Oil $uture5 Ira' )nergy *e&s : 13 Banuary 2>11? 66 5"raq Reje&ts 0o-Bi !ontra&ts5: "ashington Post: 12 ,eptember 2>>;? 63 5Oil !ompanies Reje&t "raq5s !ontra&t Terms5: "all Street Journal: 1 Buly 2>><?

2>

Iraqi *embership of OP+C

"raq is a $oun er /ember of t)e Or-aniEation of t)e (etroleum %'portin- !ountries 6O(%!76; but )a its pro u&tion quota suspen e in 1<<> ue to "raq5s invasion of 1u=ait un er ,a am Cussein6<

Foundation
"raq )oste t)e &onferen&e t)at le to t)e foun ation of O(%! in Ba-) a in ,eptember 1<6>: alon- =it) "ran: 1u=ait: ,au i Arabia an DeneEuela? 3>? Co=ever after t)e initial years: t)e "raqi -overnment be-an to be&ome frustrate =it) t)e relu&tan&e of member &ountries to a opt a unifie ne-otiatin- stan&e =it) international oil &ompanies? "nstea ea&) member &ountry )a e&i e to ne-otiate separately: =it) t)e result t)at t)e oil supermajors =ere able to s=it&) pro u&tion a=ay from "raq in rea&tion to )ars)er -overnmental eman s?31? O(%! playe a #ey part in t)e nationalisation pro&ess in 1<32: provi in- loans to &ompensate for a transitional perio =)ere Ba-) a =oul lose revenues from t)e "raq (etroleum !ompany?32

Rivalry $ith Iran

"raq =as lo&#e in rivalry =it) nei-)bourin- pro u&er "ran in t)e 1<;>s over O(%! pro u&tion quotas: at t)e same time t)at t)ey fou-)t an ei-)t-year =ar? "raq emane parity of quota =it) "ran at aroun 3?4 million barrels per ay 6bp 7: but O(%! &onsistently enie t)is as "ran5s state proven reserves =ere )i-)er: an O(%! quotas are base on reserves?33 "n response "raq floute t)e quotas? "n 1<;6 t)en /inister of Oil "ssam !)alabi sai "raq =oul i-nore its O(%! quota of 1?54 million bp of e'ports: pro u&in- instea =)atever amount =oul best serve "raqi interests? 34 T)is rivalry &ontinue in 2>11 follo=in- t)e +, o&&upation of "raq: =)en "ran su&&essfully oppose a move le by ,au i Arabia to raise O(%! oil output quotas in or er to meet s)ortfalls in supplies from 2ibya? 35As a result: no formal a-reement on O(%! prou&tion levels &oul be rea&)e ?36
6; 5/ember !ountries5: 0rgani#ation of the Petroleum )51orting Countries &ebsite, retrieve 23 0ovember 2>11? 6< 5Ope& leaves "raq oil sur-e off a-en a5: 4inancial /imes 13 *e&ember 2>><? 3> 5/ember !ountries5: 0P)C: retrieve 23 0ovember 2>11? 31 5"raq - (ost-4orl 4ar "" T)rou-) t)e 1<3>s5: US Library of Congress: retrieve 3> 0ovember 2>11? 32 5T)e "raq (etroleum !ompany 1<14-1<;25: 6a7el: 1 $ebruary 2>>5? 33 5"raq - Oil in t)e 1<;>s5 US Library of Congress Retrieve 3> 0ovember 2>11? 34 5"raq - Oil in t)e 1<;>s5: US Library of Congress: retrieve 3> 0ovember 2>11? 35 5"ran &alls for O(%! &uts: Arab members unli#ely to a-ree5: /he %aily Star: 12 0ovember 2>11? 36 5"ran %ner-y (rofileA ,till O(%!5s ,e&on -2ar-est Oil (ro u&erA Analysis5: )urasia !evie& *e&s 8 Analysis: 22 0ovember 2>11?

21

%uspension
After t)e 1<<1 .ulf 4ar: t)e +nite 0ations ,e&urity !oun&il impose a &ontinuinban on "raqi oil e'ports t)at remaine in pla&e until t)e Oil for $oo pro-ram =as initiate in 1<<6? As a result: in 1<<;: O(%! formally suspen e "raq5s pro u&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 re join t)e O(%! quota system by 2>14?I33

Iraq and OP+C follo$in5 the 1//2 $ar

"raqi oil output rea&)e its )i-)est in t=o e&a es in $ebruary 2>11 at an avera-e of 2?>; million bp : =)i&) also ma e it t)e bi--est sin-le &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 2eo *rollas of t)e !entre for .lobal %ner-y ,tu ies state t)at an e'ten e perio of stability for "raq I&oul )ave a major estabilisin- effe&t on O(%! an t)e oil pri&e?I3; "n O&tober 2>11: t)e &ountry as#e to rejoin O(%!5s quota system for &ru e input in 2>14 as it rea&)e an avera-e of 2?< million bp ? $ala) al-Amri: ire&tor of t)e ,tate Oil /ar#etin- Or-anisation 6,O/O7: state t)at t)e &ountry aie s 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 in i&ate t)at t)e &ountry =oul Isee# t)e bi--est possible quota?I 33 "raq =as sele&te to ta#e over t)e O(%! presi en&y in 2>12: ta#in- over from "ran? T)e O(%! presi en&y is a &eremonial post t)at rotates amon- t)e 12 members of t)e or-anisation: &)osen on t)e &onsequen&e of members5 alp)abeti&al names: an is for a one-year term?3<

Oil theft in Iraq

Outri-)t p)ysi&al t)eft )as been one of t)e major =ea# points in "raq5s in ustry sin&e t)e 1<<>s: parti&ularly &on&ernin- oil pro u&e at 1ir#u#? ;> A&&or in- to a report by t)e "nspe&tor .eneral of t)e "raqi /inistry of Oil: t)e smu--lin- of oil in t)e &ountry is a I-rave p)enomenonI t)at lea s to a -reat loss of money an resour&es: =)i&) also refle&ts fla=s: =ea#nesses an s)ort&omin-s at various important levels =it)in an outsi e t)e oil se&tor?;1 Bun#erin-: t)e ille-al 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
33 5"raq Aims to Boin O(%! Fuota ,ystem in 2>14: Offi&ial ,ays5: Business "eek: 26 O&tober 2>11? 3; 5O(%! member "raq oil output may affe&t future oil pri&es5 Live 0il Prices Retrieve 23 0ovember 2>11? 3< 5"raq %'pe&ts To Be .iven O(%! (resi en&y "n 2>12 - Oil /in5: !ig#one: 13 *e&ember 2>11? ;> 5A Cistory Of Oil ,mu--lin- "n "raq5: (usings on Ira': 5 Banuary 2>>4? ;1 5,mu--lin- !ru e Oil an Oil (ro u&tsA ,e&on Transparen&y Report5: Ira'i 0il (inistry: 2>>6?

22

rum? But more &omple' operations involve equippin- tan#ers =it) false bottoms to &on&eal ille-al s)ipments?;2 Oil bun#erin- in "raq =as es&ribe as 5en emi&5 by inustry analyst /att)e= Culbert in 2>12?;3 A&&or in- to blo--er Boel 4in-: =)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) le-itimate oil: =)en a re-ular s)ipment is toppe up an a separate payment ma e? "t may also involve fillin- boats or tru&#s =it) stolen oil an eliverin- t)e pro u&t in tan#ers to t)e (ersian .ulf 6)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 lar-er boats in t)e .ulf7?;4 A t)ir form is fillin- up tan#er tru&#s an rivin- t)e ille-al oil to nei-)bourin&ountries su&) as "ran: ,yria or Tur#ey?;> After 2>>3: ille-al tru&#in- )as &ontinue : sometimes on a lar-e 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

,mu--lin- of oil be-an on a lar-e s&ale urin- t)e 1<<>s =)en t)e -overnment use smu--lin- to efy t)e +nite 0ations san&tions on t)e &ountry? *urin- t)is perio tru&#s sent to Tur#ey: Bor an: ,yria: 1u=ait an ,au i Arabia: as =ell as boats -oint)rou-) t)e (ersian .ulf an /i le %ast: =ere a apte for t)ese operations? Co=ever t)e problem &ontinue follo=in- t)e brea# o=n of or er 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 ,a am?;> T)e subsi ies on "raqi fuel also ma e refine pro u&ts bein- pro u&e insi e "raq a tar-et for t)eft: espe&ially t)ose &omin- from t)e Baiji Refinery: =)ere in 2>>3 t)e +, *epartment of *efen&e estimate 3> 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 pro u&ts at t)e subsi ise pri&e an t)en re-sell t)em on t)e bla&# mar#et? ;6 Co=ever t)e -overnment too# steps to re u&e oil pro u&t subsi ies in 2>>3? ;3

Connection to insur5ency
A&&or in- to t)e +, /inistry of *efen&e: a variety of &riminal: insur-ent: an militia -roups en-a-e in t)e t)eft an illi&it sale of oil to fun t)eir a&tivities? ;5 ,in&e 2>>3 t)ere )ave been )un re s of atta&#s on "raq5s oil in ustry an analysts
;2 5%'plorin- Oil *ata5: 01en0il: 2>12? ;3 5"raq5s Rise To 0o? 2 Oil (ro u&er "n O(%! "s Ba 0e=s $or 4orl 5: 4orbes, 13 Au-ust 2>12? ;4 5Co= "raqi Oil ,mu--lin- .reases Diolen&e5: (iddle )ast 4orum: 2>>6? ;5 5/easurin- ,tability an /easurin- ,tability an ,e&urity in "raq ,e&urity in "raq5: US (inistry of %efence: Bune 2>>3? ;6 5"raqMs "nsur-en&y Runs on ,tolen Oil (rofits5: *e& .ork /imes: 16 /ar&) 2>>; ;3 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>11?

23

t)in# t)at many su&) atta&#s: =)i&) are bille as politi&al a&ts of insur-en&y: may in fa&t be t)e =or# of or-aniEe &rime syn i&ates in or er to ma'imise t)e potential for t)eft? A&&or in- to reports in t)e *e& .ork /imes: pipelines are ama-e in or er to for&e transport of oil by tru&#: so it &an t)en be stolen? $inan&e /inister Ali Alla=i es timate in 2>>6 t)at insur-ents =ere -ettin- bet=een 4> per&ent an 5> per&ent of "raq5s oil revenues?;; Boel 4in- reporte in )is blo- t)at some of t)e se&urity for&es eploye to prote&t t)e lines also &ollu e in t)ese ille-al a&tivities? $or instan&e in 2>>4 t)e *efen&e /inistry )ire t)e Babouri tribe to efen t)e pipeline to Tur#ey in ,ala in an Tamim provin&es: but t)e tribe =as reporte to be involve in smu--lin- sin&e an beyon t)e ,a am Cussein perio ? A 2>>< investi-ation by t)e Oil /inistry5s "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)ea s an pipelines sin&e at least 2>>3? T)e "nternational A visory an /onitorin- Boar 6"A/B7: &reate in 2>>3 to oversee mana-ement of "raq5s 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 Buly 2>>4? <1 A 2>11 revie= of an au it by (ri&e=ater)ouse!oopers of "raq5s oil revenue mana-ement foun t)at t)e plan to fully install an &alibrate a meterin- system by 2>12 =as only 3< per&ent &omplete?<2 A&&or in- 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 smu--le in 2>>4?<3 T)e la&# of effe&tive meterin- &an lea to lar-e quantities of &ru e bein- stolen: sin&e even a 1 per&ent is&repan&y in t)e stores of an ultra-lar-e &ru e &arrier 6+2!!7 =it) 35>:>>> tonnes ea =ei-)t &apa&ity =oul be equivalent to 5>> entire tru&#loa s of about 1:>>> -allons ea&)? "n 2>>3 .)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 loa e tan#ers =it) unmetere &ar-oes of oil? <4

;; 5Oil &orruption fuels insur-en&y in "raq5: *e& .ork /imes: 5 $ebruary 2>>6? ;< 5A Cistory Of Oil ,mu--lin- "n "raq5: (usings on Ira': 5 Banuary 2>>4? <> 5"raq5s Oil /eterin- ,ystem /ysteriously *elaye 5: Reuters: $ebruary <: 2>>6 <1 5"A/B Revie=s 1(/. Au it of t)e "raq *evelopment $un 5: !elief"eb: 15 Buly 2>>4? <2 5"raq is far be)in on oil meterin- system: au its fin 5: Platts: 1> /ay 2>11? <3 5Report of t)e "nternational A visory an /onitorin- Boar of t)e *evelopment $un for "raq5: IA(B: 22 /ay 2>>3? <4 5Oilin- t)e =)eels of =arA smu--lin- be&omes t)e real e&onomy of "raq5: uardian: < Bune 2>>3?

24

Oil 3nions in Iraq

$ollo=in- t)e fall of ,a am 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 frien ly to=ar s international oil &ompanies 6"O!s7? Co=ever in 2>1> oil unions =ere still te&)ni&ally ille-al in "raq: a le-a&y of t)e Cussein re-ime: <5 =)i&) banne t)em in 1<;3?<6 T)e &ountry5s labour movement =as es&ribe as I=ea#ene I by t)e lobal Policy 4or3 um? (arliamentarian 0assir al-%sa=i sai unions )a no spe&ial prote&tions un er "raqi 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 a-ainst "raq5s ne= oil &ontra&t si-ne =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 ener-y le-islation: stalle by a feu bet=een "raq5s Arabs an 1ur s: &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 6,R!7 )ea quarters near Basra: =it) =or#ers &allin- for a -reater per&enta-e of t)e &ompany5s bu -et to -o to employees: an for #ey members of t)e a ministration to be sa&#e ? T)ere =as an ensuin- &ra&# o=n by t)e "raqi Army an t)e Oil /inistry transferre five unionist =or#ers from t)e Basra refinery to t)e Ba-) a offi&e of t)e "raqi *rillin- !ompany 6"*!7 in an effort to rei-n t)em in?<5

Iraqi Federation of Oil 3nions

T)e "raqi $e eration of Oil +nions 6"$O+7 represents aroun 26:>>> =or#ers from 1> oil unions?<3 As of 2>1> t)e or-anisation =as )ea e by Cassan Buma? T)e .eneral ,e&retary =as $ale) Aboo +mara? "n 2>1> &)ar-es =ere brou-)t a-ainst Buma an Aboo +mara by t)e state-o=ne ,out) Oil !ompany 6,O!7: a&&use t)em of Iimpe in- t)e =or#I at oil evelopments in Basra an ma#in- t)reatenin- remar#s to=ar s forei-n oil &ompanies t)at &oul put t)e e&onomy in an-er?<; T)e "$O+ =as previously #no=n as t)e .eneral +nion of Oil %mployees 6.+O%7: t)e forerunner to =)i&) =as t)e ,out)ern Oil !ompany +nion 6,O!+7: foun e in /ay 2>>3 by =or#er a&tivists from t)e ,out) Oil !ompany? T)is an ot)er unions from Amara: Basra an 0asiriya) provin&es: t)en mer-e to form t)e .+O%? <<

<5 5+nion lea ers ta#en to &ourt for oil se&tor issent5: Ira' 0il !e1ort: 2 Buly 2>1>? <6 5"raqMs 4ea#ene +nions $i-)t $orei-n Oil $irms5: lobal Policy 4orum: 13 Buly 2>><? <3 52etter to t)e Ameri&an 2abor /ovement from t)e "$O+5: Solidarity Center? <; 5+nion lea ers ta#en to &ourt for oil se&tor issent5: Ira' 0il !e1ort: 2 Buly 2>1>? << 5,upport "raqi Oil 4or#ers5: Ira'i 0ccu1ation 4ocus: retrieve 3> 0ovember 2>11?

25

Federal Iraq and the KRG

Federalism7 Factionalism and Re5ional Differences
"raq5s 2>>5 !onstitution efines t)e &ountry as a fe eral republi& 1>> &omprisin- of 1; -overnorates or 5provin&esI: t)ree of =)i&) ma#e up "raq5s only semi-autonomous re-ion: t)e 1ur istan Re-ional .overnment 61R.7? 1>1 A&&or in- 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 fe eral mo els an t)e &entral -overnment5s foun ation is Ipossibly t)e =ea#est of any fe eral mo el in t)e =orl ?I1>2 T)e &onstitution allo=s for t)e &reation of semi-autonomous fe eral re-ions &omprise of one or more of t)e a ministrative -overnorates in "raq? To t)e e'tent t)at its po=ers o not &onfli&t =it) fe eral aut)ority: a re-ion may )ave its o=n &onstitution an e'er&ise le-islative: e'e&utive an ju i&ial aut)ority over itself? 1>3 A provin&e &an be&ome a Ire-ionI in one of t=o =aysA eit)er one t)ir of t)e provin&ial &oun&il votes to )ol a referen um on t)e issue or one-tent) of re-istere voters in t)e -overnorate as# for one? A referen um &an t)en be )el : in =)i&) fe eral status is establis)e only if a majority of voters approves it?1>4 T)e only fe eral re-ion e'istin- as of late 2>12 =as t)e 1ur istan Re-ional .overnment 61R.7? Co=ever nearly )alf of "raq5s 1; provin&es )ave eit)er e&lare semiautonomy or plan to o so? 1>5 T)e question of e'a&tly =)at fe eral 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 &ountry5s provin&ial lea ers: remains unresolve ?1>6 "raqi (rime /inister 0ouri al-/ali#i )as tra itionally been oppose to -reater in epen en&e for "raq5s re-ions: an vo=e in a 2>11 spee&) to blo&# any efforts by t)e provin&es to brea# a=ay: as#in- I=)at5s t)e reason for )avin- a ruler in Ba-) a HI an =arnin- t)at Lpo=er-s)arin- &annot be t)e foun ation of solvin- our problems?I1>3 A&&or in- to a stu y for Al Ja#eera: t)e requirement t)at -overnorates
1>> 5"raqi !onstitution5 U* Ira', retrieve 13 *e&ember 2>11? 1>1 5Ba&#-roun 0oteA "raq5: US %e1artment of State: 2 /ay 2>11? 1>2 54ea# DiabilityA T)e "raqi $e eral ,tate an t)e !onstitutional Amen ment (ro&ess5: United States Institute of Peace: Buly 2>>6? 1>3 5"raq "nvestment -ui e J se&on e ition5: Herbert Smith LLP: retrieve 13 *e&ember 2>11? 1>4 5T)e %mpo=erment of .overnorates in "raq5: Al Ja#eera Center for Studies: 12 Buly 2>12? 1>5 5T)e brea#upA /ore "raqis bi for autonomy5: Al Ja#eera: 22 *e&ember 2>11? 1>6 5"raq5s $e eralism Fuan ary5: International Crisis rou1: 2; $ebruary 2>12? 1>3 5"raq premier 0ouri al-/ali#i &)allen-es restive provin&es5: "ashington Post: 24 *e&ember 2>11?

26

see#in- to form a re-ion 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 (arlia ment?1>;

8urdistan semi.autonomous re5ion

"raqi 1ur istan is re&o-nise as a fe eral re-ion in t)e "raqi !onstitution an &onsists of t)ree provin&es: *a)u#: Arbil an ,ulaymaniya)? T)e 1ur s )ave t)eir o=n (arliament an (resi ent an &omman t)eir o=n se&urity for&es? 1>< As far as )y ro&arbons are &on&erne : un er t)e 1R.5s interpretation of t)e !onstitution 6=)i&) states t)at su&) resour&es are Lo=ne by t)e people of "raq in all t)e re -ions an -overnatesK7: t)e re-ional -overnment )as t)e ri-)t to si-n t)eir o=n &ontra&ts for oil e'ploration an pro u&tion? Co=ever Ba-) a isa-rees an &onsi ere su&) &ontra&ts as ille-al? 11> Tensions bet=een t)e &entral -overnment an t)e nort)ern re-ion es&alate follo=in- t)e entry of a series of oil majors su&) as %''on/obil an Total into "raqi 1ur istan: as =ell as on-oin- isputes over arran-ements for e'ports of )y ro&arbons?
,ee alsoA +! Contract %is1utes an +! )51ort %is1utes

%outhern provinces
$e eralist ten en&ies )ave arisen in multiple provin&es in "raq5s oil-ri&) sout): in&lu in- /aysan: 1arbala: 0ajaf an Babel: but Basra )as t)e sout)5s most evi ent an persistent pro-fe eral ten en&y?111 T)e Basra re-ion is )ome to "raq5s only sea port an : a&&or in- to *i'ash ne=spaper: to potentially 6> per&ent of t)e &ountry5s oil? 112 Co=ever just one per&ent of Basra5s resi ents use t)e publi& =ater net=or# 6&ompare to 65 per&ent nation=i e7 be&ause t)e esalinate =ater is un rin#able: a&&or in- to a stu y by t)e +nite 0ations? A&&or in- to a report by Al Ja#eera: Basra see#s in epen en&e over =)at it sees as an unfair istribution of t)e provin&e5s ener-y revenues: =it) lea ers parti&ularly an-ry over a G13 billion eal =it) oil major ,)ell to evelop t)ree oilfiel s in sout)ern "raq: =)i&) t)ey say t)e &entral -overnment ne-otiate =it)out t)eir input? 113 "n Au-ust 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 le-al measures 6t)at is: to set up a referen um7 to transform Basra into a fe eral re-ion? Co=ever as of late 2>12 t)e request for a referen um remaine =it) t)e !oun&il of /inisters? + ay A=a : member of parliament from t)e ,a rist movement: a vise t)e provin&e to re&onsi er its eman s to be&ome an in epen ent re-ion an to settle for t)e 5Basra: %&onomi& !apital of "raq5 proje&t a=aitin1>; 5T)e %mpo=erment of .overnorates in "raq5: Al Ja#eera Center for Studies: 12 Buly 2>12? 1>< 5!las) Over Re-ional (o=er ,purs "raqMs ,e&tarian Rift5: *e& .ork /imes: 23 *e&ember 2>11? 11> 5An o&ean of reserves =aitin- to be tappe 5: 4inancial /imes: < *e&ember 2>12? 111 5,)a)ristani an /ali#i in $e eralism !rossfire5: Ira' and ulf Analysis: 6 ,eptember 2>11? 112 5%s&ape from &entralismA basra postpones bi for in epen en&e5 *i'ash: 1 $ebruary 2>12? 113 5T)e brea#upA /ore "raqis bi for autonomy5: Al Ja#eera: 22 *e&ember 2>11?

23

approval by parliament as of 2>11: =)i&) =oul -rant t)e provin&e a -reater s)are of &ru e oil revenues in a ition to =i er po=ers? 114

%unni federalism and %aladin

A&&or in- to reports by t)e BB!: t)ere =as a -eneral ups=in- in pro-fe eral sentiments in ,unni-majority areas of "raq in late 2>11: )ea line 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 improvement ta#es pla&e many =ill feel &ompelle to &all for t)e establis)ment of I-eo-rap)i&ally-base fe eral re-ionsI? 115 T)e &entral-nort)ern -overnorate of ,ala in 6I,ala) a *inI7 )as been one of t)e lea in- ,unni territories =it) fe eralist movements in t)e post-2>>5 era? "n O&tober 2>11: t)e ,ala in -overnorate &oun&il e&lare its o=n fe eral status? 116 A&&or in- to a report by t)e "nternational !risis .roup ,ala in5s &oun&il emp)asise t)at it =is)e to remain part of a Iunite "raqI? 113 Co=ever t)e provin&e5s move =as met =it) stern opposition from "raqi (rime /inister 0ouri al-/ali#i5s ,)ia- ominate -overnment: =)o reje&te t)e &all: sayin- t)e formation of re-ions on a Ise&tarian basisI =oul lea to I ivi in- "raq an to rivers of bloo I?11; As t)e form of t)e eman ma e by t)e ,ala in -overnorate &oun&il =as ille-al 6be&ause it =as not foun e on t)e basis of a popular referen um7 it faile to affe&t ,ala in5s status =it)in "raq? 11< "n $ebruary 2>12 ,ala in offi&ials submitte t)e si-natures of t=o per&ent of t)e re-ion5s voters to t)e ele&toral &ommission as part of t)eir request for autonomy?12>

Other provinces
Anbar
$ollo=in- t)e moves by t)e ,ala in -overnorate in 2>11: ot)er ,unni-majority provin&es su&) as -as-ri&) Anbar also be-an to ma#e &laims for a more autonomous status if Ba-) a i not respon to t)eir eman s? 121 T)e unemployment rate in Anbar provin&e is t=i&e t)at of Ba-) a : a in- to t)e sense amon- resi ents t)at t)ey are re&eivin- an unequal s)are of essential servi&es an -overnment jobs from Ba-)a ? A majority of t)e provin&ial &oun&il in Anbar supports a bi for autonomy: but as
114 5Basra: "raq5s %&onomi& !apital: 4ants ,out)ern $e eral Re-ion5 Al (onitor 13 ,eptember 2>12? 115 50ujayfi +ses t)e $ 4or A-ain5: ulf Analysis: 15 O&tober 2>11? 116 5"n ,ala)a in: a !onfuse $e eralism Bi 5: Ira' and ulf Analysis 23 O&tober 2>11? 113 5"raq5s $e eralism Fuan ary5: International Crisis rou1: 2; $ebruary 2>12? 11; 5"raq (/ &)i es ,unni se&tions pus)in- for autonomy5: .ahoo *e&s 24 *e&ember 2>11? 11< 5,ala in is preparin- for a referen um on t)e establis)ment of t)e Re-ion5: Investors in Ira' 3 *e&ember 2>12? 12> 5,ala)a in )an s autonomy si-natures to ele&toral &ommission5: A+ *e&s 26 $ebruary 2>12? 121 5"raq5s $e eralism Fuan ary5: International Crisis rou1: 2; $ebruary 2>12?

2;

of *e&ember 2>11 t)e issue )a not yet &ome to a vote? Anbar5s -overnor )as sai t)at Ba-) a 5s ne-le&t is pus)in- people to=ar s autonomy? 122

Diyala
"n *e&ember 2>11 in t)e mi'e ,unni-,)ia-1ur 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 re-ion follo=in- a vote of 1; to 11 in favour? But t)e announ&ement =as reverse =it)in ays pen in- furt)er is&ussion: follo=in- protests outsi e t)e &oun&il buil in- in provin&ial &apital Baquba an t)reats to burn o=n t)e -overnor5s )ouse? 122 Autonomy =oul -ive *iyala more po=er over finan&es: a ministration an la=s: as =ell as more &ontrol over publi& property in t)e re-ion? 123

Revenue %harin5 Procedures in Iraq

T)e 2>>3 raft )y ro&arbon la= states t)at "raqMs )y ro&arbon =ealt) belon-s to all of its &itiEens:124 but oes not &ontain spe&ifi& -ui elines for )o= oil an -as revenues s)oul be istribute ?125 !on&erns over t)e equitable istribution of "raq5s oil revenues are one of t)e &entral issues in t)e on-oin- ispute bet=een t)e 1ur istan Re-ional .overnment 61R.7 an t)e fe eral -overnment in Ba-) a ?125 Ot)er re-ions: su&) as Anbar in "raq5s nort)=est an t)e oil-ri&) Basra re-ion in t)e sout): )ave also eman e 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 pro u&e in t)eir territory? 123 T)e me&)anisms t)rou-) =)i&) "raq5s 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- le-islation: "raq5s oil output -ro=t) &oul be si-nifi&antly slo=e : but note t)at t)ere )a been 5en&oura-in- si-ns5 of &ooperation bet=een t)e &entral -overnment an t)e 1R. on t)is front? 12;

122 5T)e brea#upA /ore "raqis bi for autonomy5: Al Ja#eera: 22 *e&ember 2>11? 123 5"raqi ,)i5ite rally a-ainst autonomy pus) in *iyala5: !euters: 15 *e&ember 2>11? 124 5(arliament stu yin- raft la= on petro ollarsN "nte-ral to oil an -as la=5: /he Currency *e&shound 3> Bune 2>11? 125 5"raqA Oil an .as ,e&tor: Revenue ,)arin-: an +?,? (oli&y5: US Congressional !esearch Service 3 /ar&) 2>1>? 126 5Anbar (rovin&e: On&e a Cotbe of "raqi "nsur-en&y: *eman s a ,ay on Resour&es5: *e& .ork /imes 23 O&tober 2>1>? 123 5"raqA Oil an .as ,e&tor: Revenue ,)arin-: an +?,? (oli&y5: US Congressional !esearch Service 3 /ar&) 2>1>? 12; 5"raq t)e /a#e=ei-)t in .lobal ,upply5: Petroleum )conomist: < O&tober 2>12?

2<

1//) draft revenue sharin5 la$

T)e 1R. an t)e fe eral -overnment in Ba-) a a-ree on a raft revenue s)arinla= for "raq in Bune 2>>3? 12< A&&or in- to t)e raft la=: t)e fe eral -overnment is empo=ere to &olle&t all of "raq5s oil an -as revenue: =it) a priority to allo&ate t)e fun s to support national priorities su&) as efense an forei-n affairs? T)e remain er =oul t)en be istribute to -overnorates automati&ally: on a mont)ly basis: base on a-ree population- ensity-base per&enta-es until a &ensus &an be &omplete ? Of t)is remain er: t)e 1R. =oul re&eive a 13 per&ent s)are? 123

9reatment in national bud5et

T)e "raqi -overnment presente its raft for t)e annual 2>12 bu -et la= in *e&ember 2>11N t)e total bu -et =as 113 trillion "raqi inars 6"*7: or appro'imately +, G1>> bil lion:13> a 21 per&ent in&rease over "raq5s 2>11 bu -et?131 A&&or in- to Rei ar Disser of t)e Ira' and ulf Analysis blo- t)e 2>12 raft bu -et is favorable to t)e interests of t)e 1R.? T)e bu -et proje&ts 1ur istan5s oil e'ports to amount to 135:>>> barrels per ay 6bp 7 in 2>12: rou-)ly 6?3 per&ent of t)e anti&ipate total "raqi aily e'ports of 2?6 million barrels? But t)e bu -et allo&ates 13 per&ent of t)e e'pen iture bu -et to t)e 1R.? +n er t)e 2>12 raft bu -et: ot)er oil-pro u&in- -overnorates re&eive one +, ollar per e'porte barrel? T)is is e'pe&te to ma#e up about 1?3 trillion "* in total: or less t)an a tent) of =)at t)e 1R. alone re&eives?13> Co=ever a)ea of t)e release of t)e 2>13 bu -et: Ira' 0il !e1ort reporte t)at allies of (rime /inister al-/ali#i =ere lobbyin- to re u&e t)e 1R.5s bu -et allo&ation: =it) many supportin- a re u&tion from 13 to 12 per&ent: &onsi erin- t)at &urrent arran-ements are too -enerous to t)e semi-autonomous re-ion? A member of parliament from t)e "raqiya list remin e t)at %rbil an ,ulimaniya) are more evelope t)an t)e rest of "raq: &laimin- t)at t)e bu -et 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 &ountry5s natural resour&es: su&) as oil an -as: are o=ne by Iall t)e people of "raq in all re-ions an -overnorates?I133 T)e !onstitution also states t)at t)e fe eral -overnment =ill mana-e oil an -as e'tra&te from "raqi fiel s &ith re-ional -overnments an -overnates? Co=ever t)e o&ument is ambi-uous about t)e spe&ifi& ynami&s: revenue istribution an &ompeten&ies of t)e various "raqi -overnmental aut)orities involve ? 134
12< 5Oil 8 -as le-islation an major evelopments5: +! , 21 Bune 2>><? 13> 5T)e %&onomi&s of $e eralism in t)e "raqi 2>12 *raft Bu -et5: Ira' and ulf Analysis < *e&ember 2>11? 131 5"raq &abinet o#ays 2>12 bu -et at G1>> billion5: !euters, 5 *e&ember 2>11? 132 5Ba-) a tar-ets 1R. bu -et priorities5: Ira' 0il !e1ort: 13 *e&ember 2>12? 133 5"raqi !onstitution5: United *ations Assistance (ission for Ira', retrieve 14 *e&ember 2>11? 134 5Oil an -as &ontra&ts in "raq5: "ho9s "ho Legal, Buly 2>1>?

3>

T)is ambi-uity in t)e !onstitution )as le to various &onfli&ts: sin&e t)e fe eral -overnment maintains t)at &ontra&ts si-ne unilaterally by a re-ional -overnment 6i?e? t)e 1ur istan Re-ional .overnment7: after t)e raft fe eral oil an -as la=s =ere approve by "raqi !oun&il of /inisters in $ebruary 2>>3: are Iille-alI until revie= an approval by t)e "raqi /inistry of Oil? 134 T)e 1ur istan Re-ional .overnment 61R.7 maintains t)at t)e ambi-uity in t)e !onstitution allo=s for re-ional -overnment5s to si-n oil &ontra&ts =it) "O!s on t)eir o=n? T)e 1R. also maintains t)at obje&tions to t)eir interpretation of t)e !onstitution are a&tually attempts to limit 1ur is) autonomy?135

IOCs defy ,a5hdad and move into 8urdistan

"n 2>>6: 0or=e-ian ener-y &ompany *0O rille t)e first ne= oil =ell sin&e t)e inva sion of "raq in "raqi 1ur istan? 136 ,in&e t)en: ot)er &ompanies )ave entere t)e re-ion: su&) asA .enel %nerji from Tur#ey: .ulf 1eystone (etroleum from t)e +nite 1in- om: Cess !orporation an /arat)on Oil !ompany from t)e +nite ,tates: Repsol 9($ from ,pain: O/D from Austria:133 4estern Oil ,an s from !ana a via its subsi iary 4estern@a-ros Resour&es:13; an ,terlin- %ner-y from t)e +nite 1in- om? 13< Co=ever t)e isputes over t)e 1R.5s &ontra&ts =it) "O!s rea&)e a &riti&al point =)en t)e re-ional -overnment announ&e : on 13 0ovember 2>11: t)at it )a a=ar e si' e'ploration an pro u&tion li&enses to %''on/obil !orporation: t)e =orl 5s lar-est oil &ompany?14> %''on =as later follo=e into t)e re-ion by $ren&) Total in Buly 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 re-ion5s vast oil reserves: by buyin- a sta#e in t=o 1ur is) e'ploration blo&#s?141 !euters reporte in ,eptember 2>12 t)at ,)ell )a also been en&oura-e by t)e a&tivities of its &ommer&ial rivals to start tal#s =it) t)e 1R. =it) a vie= to si-ninener-y 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 si-ne a eal =it) t)e re-ional -overnment? !euters also reporte t)at 0or=e-ian ,tatoil )a been Iloo#in- &loselyI at 1R. e'ploration eals?142 "n retaliation for eals stru&# in %rbil: t)e &entral -overnment be-an to 5bla&#list5 several of t)e &ompanies =)i&) si-ne =it) t)e 1R.? 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) bi in- 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 4est Furna fiel an its ne=ly si-ne &ontra&ts in 1ur istan? 143"n Buly 2>12 !)evron =as also barre from bi in- on &ontra&ts in =i er "raq after buyin135 54rapup 1A 1ur : Ba-) a oil offi&ials meet on %''on spat5: !euters, 13 0ovember 2>11 136 5*0O A,A J (,A a-reement in "raqi 1ur istan5: %*0 , retrieve 21 0ovember 2>11? 133 5Trip reportA T)e future of oil in 1ur istan5: 4inancial /imes, retrieve 21 0ovember 2>11? 13; 5Operations5 "estern 6agros !esources, retrieve 21 0ovember 2>11? 13< 5OperationsA 1ur istanA ,an-a= 0ort)5: Sterling )nergy, retrieve 21 0ovember 2>11? 14> 5.iant %''on /obil enters 1ur istan oil mar#et5: +urdish lobe, 1< 0ovember 2>11? 141 5"raq Blo&#s %''on 2i&ense Bi 5: "all Street Journal, 13 $ebruary 2>12? 142 5"raq says ,)ell enies oil tal#s =it) 1ur istan5: !euters, 26 ,eptember 2>12? 143 5"raq Blo&#s %''on 2i&ense Bi 5: "all Street Journal, 13 $ebruary 2>12?

31

sta#es in t)e nort)?144 Co=ever A nan Al Banabi: &)airman of t)e Oil an %ner-y !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 le-al aut)ority to bla&#list %''on over its 1ur istan &ontra&ts? 143 As of 0ovember 2>12 %''on &ontinue to operate its 4est 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: in ustry spe&ialist ,teve 2eDine pre i&te t)at t)e &ompanies si-nint)ese eals &oul be&ome Ian unintentional fift) &olumn in 1ur istan5s move to=ar s e&onomi& autonomyI?146

8R0 +#port Disputes

As a result of t)e eep-roote politi&al isputes bet=een t)e 1ur istan Re-ional .overnment 61R.7 an Ba-) a : e'ports of 1ur is) &ru e sin&e 2>>< )ave been -overne by a series of temporary politi&al eals? T)e 1R. )as on several o&&asions e&i e to s)ut in its -ro=in- pro u&tion: as Ba-) a &ontrols t)e pipeline net=or# an &laims e'&lusive ri-)ts to sell "raqi &ru e? 143 4it) t)e 1R. la&#in- pipelines to e'port its o=n oil: in Banuary 2>11 "raqi (rime /inister 0ouri al-/ali#i an t)en-1R. (rime /inister Bar)am ,ali) stru&# a eal t)at enable t)e 1R. to e'port &ru e t)rou-) pipelines &ontrolle by t)e "raqi &entral -overnment in Ba-) a ? T)e eal man ate t)at t)e 1R. =oul -et )alf t)e revenues from its e'porte oil?14; T)e eal &overe 14 mont)s of e'ports an +, G514 millions in payments by Ba-) a ? "t &alle for 1ur istan to raise e'ports to 2>>:>>> barrels per ay 6bp 7 t)at year: an for Ba-) a to ma#e t=o imme iate payments totalin- 1 tril lion inars 6G;33 million7?14< Co=ever in April 2>12 t)e 1R. respon e to t)e payment ispute =it) t)e &entral -overnment by )altin- oil s)ipments? T)e 1R. &laime t)at it =as o=e +, G1?5 bil lion in ba&#lo--e 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 au its =ere not &on u&te an a&&use t)e 1R. of sellin- &ru e an fuel pro u&ts unilaterally rat)er t)an sen in- t)e revenues ba&# to t)e &entral -overn ment as a-ree ?151 T)e 1ur s later resume e'ports t)rou-) t)e Ba-) a -&ontrolle pipeline from

144 5"raqi ministry 5bars !)evron over 1R. eal5: U1stream 0nline, 24 Buly 2>12? 145 5%''on pressin- to=ar 4est Furna sale5 Ira' 0il !e1ort: ; 0ovember 2>12? 146 54ill oil &ompanies provi e 1ur istan its e fa&to state)oo H5: /he 0Il and the lory, 1 Au-ust 2>12? 143 5Bu -et battle over 1ur istan e'ports5: Ira' 0il !e1ort, 25 O&tober 2>12? 14; 51ur istan be-ins in epen ent &ru e e'ports5: Ira' 0il !e1ort, 11 Buly 2>12? 14< 5Bu -et battle over 1ur istan e'ports5: Ira' 0il !e1ort 25 O&tober 2>12? 15> 51R. -ets oil payment from Ba-) a : e'ports to flo=5: !euters: ; O&tober 2>12? 151 5%'ports start an Tur#ey line operational5: Ira' 0il !e1ort ; Au-ust 2>12?

32

1ir#u# to !ey)an in Tur#ey: an in ,eptember 2>12 t)e &entral -overnment an t)e autonomous re-ion finally rea&)e a settlement over t)e ispute: =it) t)e 1R. promisin- to &ontinue e'ports an Ba-) a ple -in- to pay forei-n &ompanies =or#int)ere?15> On t)e 13 ,eptember 2>12 Ba-) a an %rbil announ&e t)at t)ey )a &ome to a ne= a-reement over e'ports of 1ur is) oil? T)e ne= e'port a-reement =as si-ne in Ba-) a by Oil /inister Ab ul 1arim 2uaibi: 1R. /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 a-reement itself loo#e to be in oubt: a&&or in- 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 1R. in a symboli& move )a be-un to e'port &ru e 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 respon e by t)reatenin- to seiEe =)at it vie=s as ille-al e'ports: &laimin- t)at t)e ,tate Oil /ar#etin- Or-anisation 6,O/O7 is t)e sole le-ally 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 Buly 2>12 t)e 1ar .roup announ&e it )a &omplete 23 per&ent of t)e first se&tion of a pipeline to &arry oil from "raqi 1ur istan nort) a&ross t)e bor er to Tur#ey: bypassin- "raqi Arab re-ions? T)e pipeline proje&t is to transport oil from t)e Taq Taq fiel to 1)urmala: a route &urrently mana-e by tan#er: an also in&lu es t)e &onstru&tion of a -as pipeline from %rbil-*o)u#? ? T)e proje&t =as es&ribe by fun man a-er "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 1ur s e&onomi&ally self-suffi&ient an embol en t)em to see# in epen en&e? 155 "f t)is pipeline =as to &onne&t to Tur#ey: as some press reports )ave su--este : "raqi 1ur istan =oul be opene up to e'ternal mar#ets? Co=ever t)e future of t)is e'port route epen s very mu&) on ener-y &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 a visor to t)e (rime /inister: &ommente to Ira' 0il !e1ort t)at It)e 1ur s &an5t rely on pipelines to Tur#ey to surviveI: =arnin- t)at t)ey &oul ris# losin- t)e 13 per&ent of t)e national bu -et &urrently allo&ate to t)e re-ion? 153

152 5Ba-) a tar-ets 1R. bu -et priorities5: Ira' 0il !e1ort: 13 *e&ember 2>12? 153 51R. starts in epen ent &ru e oil e'ports5: Hurriyet %aily *e&s: ; Banuary 2>13? 154 5"raq t)reatens to seiEe oil s)ipments: sue ealers5: Huffington Post: 11 Banuary 2>13? 155 5Tony Cay=ar 2oa s Tru&#s 4it) 1ur is) Oil A=aitin- (ipeA %ner-y5: Bloomberg: 3> Buly 2>12? 156 51ur istan Oil (ipeline 4oul Test Tur#is) (oli&ies on "raq an ,yria5: Al (onitor: 24 0ovember 2>1>? 153 5Ba-) a tar-ets 1R. bu -et priorities5: Ira' 0il !e1ort: 13 *e&ember 2>12?

33

Energy Industry Background

Iraqi 6ydrocarbon Reserves and Production
A&&or in- to t)e BP Statistical !evie& of "orld )nergy :;<: : "raq )ol s t)e fift) lar-est proven petroleum reserves in t)e =orl : follo=in- DeneEuela: ,au i Arabia: !ana a an "ran:15; an only a fra&tion of t)e &ountry5s #no=n fiel s are in evelopment? 15< Aroun 35 per&ent of "raq5s proven oil reserves are &on&entrate in t)e t)ree sout)ern -overnorates: =it) 25 per&ent in t)e mi le an t)e nort)? On t)e ba&# of a 2>12 report by t)e "nternational %ner-y A-en&y 6"%A7 t)at &laime t)at "raq =oul a&&ount for nearly )alf of t)e in&rease in -lobal oil pro u&tion bet=een 2>12-2>35: t)e or-anisation5s &)ief e&onomist es&ribe "raq as a ream for t)e ener-y in ustry: =it) I)i-) oil reserves: easy -eolo-y an lo= pro u&tion &osts?I 16> *rillin- su&&ess rates: at aroun 3> 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 1ur istan in =ays t)at &onfli&t: a-ree: or simply iffer? Reliable an relevant estimates are in i&ate an e'plaine in t)e se&tions t)at follo=?

Oil
Proven Reserves T)e BP Statistical !evie& 5s estimate for proven reserves of &ru e oil rose to 143?1 billion barrels 6bbl7 at t)e en of 2>11: up from 34 bbl in 1<;>: brin-in- t)e per&enta-e of total -lobal reserves to ;?3 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 si-nifi&ant leaps in t)e estimate over t)is perio ? O "n 1<;2: early in t)e =ar =it) "ran: reserves estimates nearly ouble from 32 to 5< bbl? O "n 1<;3: 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 pro u&tion quotas on state reserves: t)e fi-ure jumpe from 32 bbl to e'a&tly 1>> bbl? O "n 1<<6: as t)e +nite 0ations =as finalisin- t)e terms of t)e Oil $or $oo pro-ram
15; 5,tatisti&al Revie= of 4orl %ner-y 2>125: BP: 2>12? 15< 5"raq5: )nergy Information Administration: ,eptember 2>1>? 16> 5"%A pre i&ts boom in "raq oil pro u&tion5: 4inancial /imes: < O&tober 2>12? 161 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12?

34

=)i&) =oul allo= "raq to e'port oil a-ain 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 1in- om an t)e +nite ,tates &arrie out bombin- rai s: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-) a 5s 5.reen @one5: reserve estimates rea&)e 115 bbl of oil: a fi-ure t)at remaine stable until *e&ember 2>11? Co=ever: as =it) ot)er O(%! pro u&ers: it is not &lear if t)e &urrent estimate of 143?1 bbl also in&lu es oil t)at )as alrea y been pro u&e ? T)e +nite ,tates .eolo-i&al ,urvey 6+,.,75s "orld Petroleum 0utlook of 2>>> estimate t)at of t)e 1>> bbl fi-ure t)at =as t)en bein- use : 22 bbl )a alrea y been pro u&e : leavin- only 3; 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 -eolo-i&al an en-ineerin- information in i&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)or5s o=nQ?I B( also states t)at t)e estimates in t)eir tables are &ompile usin-A Ia &ombination of primary offi&ial sour&es: t)ir -party ata from t)e O(%! ,e&retariat: Oil 8 .as Bournal an an in epen ent estimate of Russian reserves base on information in t)e publi& omain?I Ultimately recoverable reserves .iven t)at a lar-e portion of "raq remains une'plore : t)ere )ave been numerous &laims of )u-e un is&overe reserves 6oil t)ou-)t to e'ist: an e'pe&te to be&ome e&onomi&ally re&overable7: to t)e tune of )un re s of billions of barrels? A&&or in- to a Broo#in-s "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 $e eration of Ameri&an ,&ientists estimates 215 bblN a stu y by t)e !oun&il on $orei-n Relations an Ri&e +niversity &laime t)at "raq )as 22> bbl of un is&overe oil?163 "n 2>>3: Tareq ,)afiq: a foun in- e'e&utive of t)e "raq 0ational Oil !ompany 6"0O!7 in t)e 1<6>s: en orse a fi-ure of 215 bbl as "raq5s potential reserves?164 Production B(5s Statistical !evie& of "orld )nergy s)o=s t)e profoun variations in oil pro u&tion t)rou-)out t)e e&a e 2>>>-2>>< an until 2>1>? Avera-e aily pro u&tion =as 2?1 million barrels per ay 6bp 7 in 2>>2: roppe to a lo= of 1?3 million in 2>>3: rose ba&# to 2?> million in 2>>4: an #ept risin- to eventually rea&) 2?; million bp in 2>11? 165 T)e ori-inal pro u&tion tar-ets of t)e "raqi -overnment of 12 million bp of output by 2>13 )ave sin&e been o=n-ra e an eeme unrealisti& by t)e in ustry: an as of
162 5"raq (rofile5: BBC, 2> *e&ember 2>11? 163 5Co= mu&) oil oes iraq )aveH5: Brookings Institute: /ay 12: 2>>3? 164 5"raq Oil *evelopment (oli&y OptionsA "n ,ear&) Of Balan&e5: (iddle )ast )conomic Survey: 15 *e&ember 2>>3? 165 5,tatisti&al Revie= of 4orl %ner-y 2>125: BP, 2>12?

35

late 2>12 t)e -overnment =as tal#in- of < million bp by 2>2>?A furt)er t)reat to "raq5s output -oals are t)e limitations impose by pro u&tion quotas set by O(%!: =)en "raq eventually rejoins t)e or-anisation5s quota system? 166 A report release by t)e "nternational %ner-y A-en&y 6"%A7 in 2>12 lays out a 5&entral s&enario5: 5)i-) &ase5 an 5 elaye &ase5 for "raq5s future pro u&tion profile to=ar s 2>35? A&&or in- to t)is 5&entral s&enario5: "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 lar-est pro u&tion in&rease &omin- from t)e &luster of super--iant fiel s aroun Basra in t)e sout) an from 1ur istan in t)e nort)? A&&or in- to t)e proje&tions: t)ese levels of pro u&tion &oul earn "raq +, G5 trillion in e'port revenues: )o=ever in or er to realise t)ese -ains t)e &ountry =ill nee stren-t)ene institutions an )uman &apa&ity: soun lon--term strate-ies for t)e ener-y se&tor an effi&ient an transparen&y mana-ement of revenues an spen in-?163

0as
As of 2>12: "raq5s proven -as reserves stoo at 3?6 trillion &ubi& metres 6t&m7: t)e ma jority of =)i&) e'ist as 5asso&iate -as5 at t)e &ountry5s oil fiel s? 16; Proven reserves B(5s estimate of proven natural -as reserves &)an-e 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&&or in- to t)e %ner-y "nformation A ministration 6%"A7: probable "raqi reserves )ave been estimate at ;?25-< t&m: an a -roup of in epen ent an international oil &ompanies are =or#in- on more a&&urate estimates of t)ese reserves? T)e %"A estimates t)at 3> per&ent of -as reserves lie in Basra -overnorate: an t=o-t)ir s of reserves e'ist as 5asso&iate -as5 in oil fiel s: in&lu in- 1ir#u# in t)e nort): an sout)ern 0a)r +mar: /ajnoon: Calfaya: 0asiriya): Rumaila: 4est Furna an @ubair? Bust un er 2> per&ent of #no=n reserves are t)ou-)t to be 5non-asso&iate 5: t)e majority of =)i&) are &on&entrate in t)e 0ort): at t)e Ajil: Bai Cassan: Bambur: !)em&)emal: 1or /or: 1)as)em al-A)mar: an /ansuriya) fiel s?13> Production B(5s Bune 2>11 Statistical !evie& of "orld )nergy s)o=s a serious e&line in natural -as pro u&tion t)rou-)out t)e e&a e 2>>>-2>>< an until 2>1>? $rom 2>>> on=ar s: e'&lu in- -as flare or re&y&le : yearly pro u&tion slo=ly roppe from 3?2 billion &ubi&
166 54ill "raq be t)e ne't oil superpo=erH5 Petroleum )conomist: 12 *e&ember 2>12? 163 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? 16; 5!ountry briefA "raq5: )nergy Information Administration: ,eptember 2>1>? 16< 5B( ,tatisti&al Revie= of 4orl %ner-y Bune 2>11A 0atural .as5 BP: Bune 2>11? 13> 5,tatisti&al Revie= of 4orl %ner-y 2>125: )nergy Information Administration: ,eptember 2>1>?

36

meters 6b&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- a-ain to 1?< b&m at t)e en of 2>11?131

8urdish reserves and production

Oil
%stimates of petroleum reserves in t)e 1ur istan re-ion are unoffi&ial an often vary? "n *e&ember 2>11: +nite (ress "nternational 6+("7 =as one of t)e me ia sour&es t)at state t)at "raqi 1ur istan )a an estimate 45 billion barrels 6bbl7 of oil 6rou-)ly t)e amount t)at t)e +nite 1in- om )as pro u&e from its 0ort) ,ea fiel s7? 132 Co=ever 1eit) /yers of Ri&)mon %ner-y (artners )i-)li-)te in a 0ovember 2>12 letter to t)e )conomist t)at t)is 45-billion-barrel fi-ure first appeare in a presentation by t)e 1ur istan Re-ional .overnment 61R.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 1ur istan5s oil e'ists in 5ti-)t5 reservoirs an t)at t)e amount of oil li#ely to be pro u&e in 1ur istan is &loser to 11 bbl? By t)ese estimates: 1ur istan )ol s less t)an 1> per&ent of t)e "raq5s total reserves: =)ile t)e -overnment is entitle to a 13 per&ent s)are of fe eral petroleum revenues?133 4)ile flu&tuatin- pro u&tion levels in 2>12 remaine mo est &ompare to sout)ern "raq: at aroun 2>>:>>> barrels per ay 6bp 7 6e'pe&te to &limb to 25>:>>> bp by 2>137:134 oil &ompanies e'plorin- in t)e re-ion )ave seen )i-) su&&ess rates? 135 *epen in- on t)e level of international investment an a&&ompanyin- te&)ni&al e'pertise: t)e 1R. /inister of 0atural Resour&es announ&e )is -oal to rea&) 2 million bp of pro u&tion by 2>1<?136 1R. (rime /inister 0e&)irvan " ris BarEani announ&e at a 2>12 &onferen&e in %rbil t)at t)e re-ion )ope to rea&) t)e me ium-term lan mar# of 1 million bp in 2>15?133

Gas
T)ere are no offi&ial estimates for total -as reserves in "raqi 1ur istan: an t)ose estimates t)at )ave been ma e vary si-nifi&antly in siEe? T)e 1R. itself estimates t)e re-ion5s -as reserves at bet=een 3 an 6 trillion &ubi& metres 6t&m7 13; an ne=s portal

131 5,tatisti&al Revie= of 4orl %ner-y 2>125: BP: 2>12? 132 5As "raq smol ers: 1ur s sit on oil ri&)es5: UPI : 22 *e&ember 2>11? 133 52etters5: )conomist 24 0ovember 2>12? 134 5"raqi 1ur s &ount on Tur#ey as ener-y )ub ami fri&tion5: Hurriyet %aily *e&s: 2> ,eptember 2>12? 135 5"raqi .overnment an 1ur istan at O s Over Oil (ro u&tion5: *e& .ork /imes: 14 0ovember 2>12? 136 5As 1ur istan oil booms: eal-ma#in- a&&elerates5: Ira' 0il !e1ort: 3 *e&ember 2>12? 133 5TO( Oil /ar#et 0e=sA !ru e 0ear T=o-4ee# Ci-)N Bulls Boost Bets5: Bloomberg: 3 *e&ember 2>12? 13; 5A ne= era in se&urity an evelopment5: +urdistan !egional overnment9, retrieve 3 *e&ember 2>12?

33

+(" reporte in 0ovember 2>12 a fi-ure for -as reserves of 3?36 t&m? 13< Co=ever an estimate by t)e US eological Survey puts total Iyet-to-fin I -as at 6> trillion &ubi& metres 6t&m7 of -as?1;> Co=ever t)e 1ur istan re-ion5s ability to monetise t)ese reserves =ill epen on e'port infrastru&ture? A role )as also been su--este for t)e re-ion in supplyin- -as for t)e 5,out)ern !orri or5 route 6via t)e 50abu&&o5 pipeline or one of t)e ot)er &ompet in- proposals7: a proje&t aime at iversifyin- -as supply routes to 4estern %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>13 but pro-ress epen s on a resolution bet=een t)e &entral -overnment an t)e 1R. over -as e'ports?1;1

Dependence on +#tractives Revenues

(oliti&al s&ientist /i&)ael Ross es&ribes oil epen en&e as It)e ratio of oil: -as an &oal e'ports to .*(I? By t)is efinition: t)e most )i-)ly oil epen ent state in 1<<5 =as An-ola 66;?5 per&ent7: follo=e by 1u=ait 64<?1 per&ent7? T)e most )i-)ly mineral- epen ent states =ere Bots=ana 635?1 per&ent7 an ,ierra 2eone 62;?< per&ent7? Ci-) levels of epen en&e &an ma#e states more sus&eptible to symptoms of t)e so&alle 5resour&e &urse5: su&) as a )i-)er propensity for violent &onfli&t: =ea# institutions an stunte e&onomi& evelopment? 1;2 A +0 paper investi-atin- patterns of resour&e epen en&y bet=een 1<6>-1<<> foun a &orrelation bet=een &ountries e')ibitin- )i-) levels of fuel an mineral epen en&y an ne-ative per &apita annual -ro=t) rates over t)at perio ?1;3 Co=ever t)ere are t=o ifferent measures of oil revenue epen en&e: t)e first beint)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 pro u&ers: t)e +nite Arab %mirates s)o=s t)e least oil epen en&e: =it) oil a&&ountin- for just over )alf of -overnment in&ome: an just un er )alf of e'ports?1;4 Fatar: by &ontrast: s)o=e a ratio of 3> per&ent of -overnment revenues: an ;> per &ent of total e'ports? T)e "nternational /onetary $un i entifie 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 meanin-ful analysisA 2ibya: Al-eria: An-ola: AEerbaijan: Ba)rain: Bolivia: Brunei: !ameroon: !)a : !on-o: %&ua or: %quatorial .uinea: .abon: "n onesia: "ran: 1aEa#)stan: 1u=ait: /e'i&o: 0i13< 5"raqi 1ur s efy Ba-) a : e'port o=n oil5: UPI, 1 0ovember 2>12? 1;> 5Cay=ar stri#es G2bn 1ur istan eal5: 4inancial /imes: 3 ,eptember 2>11? 1;1 5"raq 4ants to (lay Role in 0abu&&o (ipeline5: *atural as )uro1e : 1 O&tober 2>12? 1;2 50atural Resour&es an Diolent !onfli&t5: "orld Bank: 2>>3? 1;3 5/eetin- t)e !)allen-e Of t)e RResour&e !urseM5: U*%P: 2>>6? 1;4 5.!! !ountriesA $rom Oil *epen en&e to *iversifi&ation5: International (onetary 4und: 2>>3?

3;

-eria: 0or=ay: Oman: Fatar: Russia: ,au i Arabia: ,u an: Timor-2este: Trini a an Toba-o: +A%: DeneEuela: Dietnam: an 9emen?1;5 "t is important to note t)at oil revenue epen en&e is not relate to t)e quantity of oil pro u&e or e'porte ? 9emen: =)i&) e'porte aroun 44;:>>> barrels of oil a ay 6bp 7 in 2>>3: isplaye a )i-)er e-rees of epen en&e on oil revenues t)an ,au i Arabia: =)i&) e'porte aroun 1>?2 million bp over t)e same perio : or over t=enty times more?1;6

Dependence on e#tractives revenues in Iraq

A&&or in- to t)e "nternational %ner-y A-en&y 6"%A7: t)e )eavy epen en&e of "raq5s e&onomi& evelopment on t)e su&&ess of its oil se&tor ma#es t)e e&onomy )i-)ly vulnerable to &)an-in- &on itions in t)e -lobal oil mar#et: a&&ountin- for s)arp s=in-s 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 mana-ement of national finan&es is essential to miti-atin- t)is ris#? "raq in parti&ular: =it) a lar-e an -ro=inpopulation: must evelop a self-sustainin- an pro u&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 &ountry5s oil revenues?1;3 Revenue 4at&) "nstitute reports t)at in "n 2>1> "raq a&&umulate over G51?4 billion in oil revenues: =it) oil a&&ountin- for over 35 per&ent of .*( an almost <> per&ent of -overnment revenues?1;;

9he 4+ner5y *i#4

-hat is the 4ener5y mi#4:
T)e 5ener-y mi'5 refers to t)e istribution of &onsumption per ener-y sour&e? %a&) &ountry uses ener-y ifferently: efinin- its o=n ener-y mi'? 1;< A&&or in- to t)e BP Statistical !evie& : in 2>1> oil &onsumption a&&ounte for 34 per&ent of t)e =orl 5s primary ener-yN &oal a&&ounte for 3> per&ent of t)e mi'N -as &ontribute 24 per&entN )y ro-po=er &ontribute 6?5 per&ent an non-)y ro rene=ables 6in &lu in- biofuels7 &ontribute 1?; per&ent?1<> B(5s )nergy 0utlook :;=; report )i-)li-)ts t)ree #ey tren s s)apin- t)e mo ern ener-y e&onomyA in ustrialisation: urbanisation an motorisation? T)ese tren s are le byA
1;5 5$is&al (oli&y in Oil (ro u&in- !ountries *urin- t)e Re&ent Oil (ri&e !y&le5: International (onetary 4und: $ebruary 2>1>? 1;6 5B( ,tatisti&al Revie= of 4orl %ner-y Bune 2>115: BP: Bune 2>11? 1;35 "raq %ner-y Outloo#: I)A: < O&tober 2>12?? 1;;5 "raqA %'tra&tive "n ustries: !evenue "atch: retrieve 2; 0ovember 2>12?? 1;< 5T)e %ner-y /i'5: Planete )nergies: retrieve 1 $ebruary 2>12? 1<> 5T)e =orl -ets ba&# to burnin-5: )conomist: ; Bune 2>11?

3<

O in&rease ener-y &onsumption? O in&rease effi&ien&y of ener-y use in pro u&tion an &onsumption? O in&reasin- iversifi&ation of sour&es of ener-y? O in&rease eman for &lean an &onvenient ener-y at t)e point of use? 1<1

6istorical trends
One sour&e of po=er )as al=ays ominate t)e ener-y mi'? "n t)e pre-in ustrial a-e =oo ominate : urin- t)e in ustrial revolution &oal ominate an oil )as ominate t)e 2>t) &entury? By 2>3> B( pre i&ts t)at natural -as =ill -ain in importan&e: )o=ever ener-y effi&ien&y =ill mean t)at e&onomi& -ro=t) =ill be far less ener-y intensive a&ross t)e -lobe?1<2 T)e first -reat =ave of in ustrialisation =as po=ere by &oal: a fuel =)i&) remaine ominant until after t)e ,e&on 4orl 4ar? T)e ne't major transition &ame =it) ele&tri&ity an t)e internal &ombustion en-ine: =)i&) allo=e iversifi&ation a=ay from &oal? !oal -ra ually &ame to be repla&e as t)e prin&ipal fuel in po=er -eneration by natural -as an rene=able ener-y sour&es?1<1 Co=ever bet=een 2>>>-2>11 &oal5s s)are of t)e ener-y mi' in&rease by 4 per&ent on t)e ba&# of stron- -ro=t) in !)ina: most of =)om5s -ro=t) in t)e 21st &entury )as &ome from burnin- &oal? !oal &onsumption in 2>11 =as up by 3?6 per&ent an =as -ro=in- faster t)an at any time sin&e 2>>3? 1<3

Future pro;ections
T)e "%A pre i&ts t)at t)e s)are of natural -as in t)e -lobal ener-y 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&&or in- to t)eir report: an in&rease s)are of natural -as in t)e ener-y mi' is far from enou-) to avoi an avera-e -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&&or in- to B(5s estimates: t)e fuel mi' =ill &)an-e relatively slo=ly ue to lon- asset 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= at t)e fastest rate 62?1 per&ent per year7? T)eir outloo# pre i&ts t)at oil =ill &ontinue a lon- e&line in mar#et s)are an t)at re&ent -ains by &oal in mar#et s)are: ue to rapi in ustrialisation in !)ina an "n ia: =ill be reverse by 2>3>? 1<5

1<1 5B( %ner-y Outloo# 2>3>5: BP: Banuary 2>11? 1<2 54atts ne't5: )conomist: 25 Banuary 2>12? 1<3 5T)e =orl -ets ba&# to burnin-5: )conomist: ; Bune 2>11? 1<4 5Are =e enterin- t)e -ol en a-e of -asH5: International )nergy Agency: 2>11? 1<5 5B( %ner-y Outloo# 2>3>5: BP: Banuary 2>11?

4>

Unconventional energy sources

T)e Petroleum )conomist pre i&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 ener-y eman in t)e future: t)e I-ame &)an-erI bein- t)e rise of un&onventional -as in t)e +,? Co=ever nearly 35 per&ent of t)e =orl 5s total un&onventional resour&es lie outsi e 0ort) Ameri&a?1<6 A&&or in- to t)e "%A5s 2>11 report 5Are =e enterin- a -ol en a-e of -asH5: un&onventional -as resour&es are no= estimate to be as lar-e as &onventional resour&es: an un&onventional -as no= ma#es up aroun 6> per&ent of mar#ete pro u&tion in t)e +,?1<3 1(/.: in t)eir report 5,)ale .as - A .lobal (erspe&tive5 ar-ue t)at t)is resour&e )as t)e potential to turn t)e =orl 5s ener-y in ustry on its )ea an to ispla&e fossil fuels in t)e ener-y mi' of sele&te lo&ations: in&lu in- !)ina: Ameri&a: Ar-entina: /e'i&o an ,out) Afri&a:1<; potentially slo=in- t)e evelopment of rene=able resour&es? Co=ever t)e in ustry must first fa&e &onsi erable reputational an re-ulatory obsta&les?1<<

Renewable energy sources

Rene=able ener-y in&lu es su&) sour&es as =in : p)otovoltai& an t)ermal solar: ti al an =ave po=er: amon- ot)ers? T)e rene=able ener-y in ustry 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? 4in po=er: for e'ample: s)o=e -ro=t) rates above 3> per&ent bet=een 1<<3-2>>3?2>> Co=ever: eman for fossil-base ener-y: su&) as &oal an oil: )as outpa&e eman for &lean ener-y? 2>1

9he 4+ner5y *i#4 in Iraq

"raq sa= its omesti& eman for oil rise to over 3>>:>>> barrels per ay 6bp 7 in 2>11: up from only 45>:>>> bp in 2>>3? 0e-le&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 pro u&ts from nei-)bourin- &ountries? T)e +, *epartment of %ner-y 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 62(.7?2>2 A&&or in- to t)e "nternational %ner-y A-en&y 6"%A7 in 2>12: natural -as &an play a mu&) more important role in "raq5s future t)an it )as previously: re u&in- t)e ominan&e of oil in t)e omesti& ener-y mi'? "n or er to a&)ieve t)is: t)e &ountry5s asso&i1<6 5+n&onventional -as5s -lobal potential5: Petroleum )conomist: 1; Buly 2>11? 1<3 5Are =e enterin- t)e -ol en a-e of -asH5 : International )nergy Agency: 2>11? 1<; 5T)e 4orl in $i-uresA %ner-y5: )conomist: 13 0ovember 2>11? 1<< 5,)ale .as - A .lobal (erspe&tive5: +P( Institutes: *e&ember 2>11? 2>> 54orl %ner-y an (opulation Tren s to 21>>5: A11roaching the Limits to ro&th: O&tober 2>>1? 2>1 5!lean %ner-y (ro-ress Report5: International )nergy Agency: Bune 2>11? 2>2 5Refinin-A *omesti& pro&essin- &apa&ity is risin- qui&#ly5: 4inancial /imes: 3 *e&ember 2>11?

41

ate -as must be &apture an pro&esse : rat)er t)an flare ? But a&&or in- to t)eir proje&ts asso&iate -as alone =ill not satisfy "raq5s proje&te eman : estimate at 3> billion &ubi& metres 6b&m7 by 2>35? T)erefore "raq5s -as balan&e an t)e availability of surplus -as for e'port =ill epen on &reatin- in&entives to evelop t)e &ountry5s 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 pro u&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 stan in- o=n in 2>1>? 2>6 "n 2>12: for e'ample: t)e avera-e "raqi )ouse)ol re&eive po=er for only 3?6 )ours per ay 6a &al&ulation =)i&) ta#es into a&&ount )omes in t)e semi-autonomous re-ion of "raqi 1ur istan: =)ere &itiEens )ave a&&ess to ele&tri&ity aroun t)e &lo&#7? /any )ouse)ol s rely on )ouse)ol or nei-)bour)oo -enerators for po=er?2>3

2>3 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? 2>4 5(o=er -eneration a top priority in "raq5: (iddle )ast Business Intelligence: 2>12? 2>5 5"raq eyes %+ -as e'ports t)rou-) Tur#ey5: Petroleum )conomist: ; ,eptember 2>11? 2>6 5"raq ele&tri&ity minister resi-ns over po=er &uts5: !euters: 21 Bune 2>1>? 2>3 5(o=er -eneration a top priority in "raq5: (iddle )ast Business Intelligence: 2>12?

42

Generic Oil and Gas Terms

Resource Curse
T)e 5resour&e &urse5 6sometimes terme t)e 5para o' of plenty57 refers to t)e t)eory t)at natural resour&e =ealt) an a )i-) e-ree of epen en&y on natural resour&es &an sometimes para o'i&ally &reate ne-ative evelopment out&omes in pro u&in&ountries? T)is is ue to =ea#ene -overnmental institutions: ne-le&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 i ea 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 i eolo-i&al &amps of t)e 2eft an Ri-)t? %mpiri&al ata be-an to a&&umulate to support t)e i ea over time? "n t)e 1<3>s .obin 0an#ani: a vi&e-presi ent at t)e 4orl Ban#: s)o=e t)at a -roup of mineral e'portin- &ountries -re= on avera-e by 1?5 per&ent per year over t)e perio 1<6> to 1<36: about )alf t)e -ro=t) in a &ontrol -roup of non resour&e-ri&) &oun tries?2>< "n 1<;; a stu y &ommissione by t)e 4orl Ban# e'amine t)e =in falls a&&ruin- to si' oil-ri&) &ountries urin- t)e boom of t)e 1<3>s an &on&lu e t)at t)ose states )a performe less =ell t)an ot)er: resour&e-poor &ountries? 21> At t)e en of t)e 1<<>s Beffrey ,a&)s an An re= 4arner5s publi&ation 50atural Resour&e Abun an&e an %&onomi& .ro=t)5 e'amine <3 &ountries over a perio of 1; years 61<31 - 1<;<7 an foun t)at states =it) a )i-) abun an&e of natural resour&e e'ports )a abnormally slo= e&onomi& -ro=t) in -eneral: relative to ot)er &ountries? T)e stu y be&ame t)e basis of a -ro=in- re&o-nition of t)e nee to a ress t)e prob lems t)at natural resour&e abun an&e &an &reate in evelopin- so&ieties? 211

Opponents of the term

,ome e&onomists )ave resiste t)e term 5resour&e &urse5 be&ause t)ey &laim it soun s fatalisti&?212 O'for professor (aul !ollier su--ests 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 in ustries in some evelopin- &ountries5 e&onomies is simply: )e states: ue to t)e fa&t t)at t)ey
2>; 5%'plorin- Oil *ata5: 01en0il: 2>12? 2>< 0an#ani: .obin 5*evelopmental (roblems of /ineral %'portin- !ountries5 "orld Bank: 1<3<? 21> 5Oil 4in falls: Blessin- or !urseH5 Alan elb and Associates: 1<;;? 211 ,a&)s: Beffrey an 4arner: An re= 50atural Resour&e Abun an&e an %&onomi& .ro=t)5: Center for International %evelo1ment and Harvard Institute for International %evelo1ment : 0ovember 1<<3? 212 5Resour&e !urse: or Resour&e TrapH5: /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 ar-ues t)at for t)e =orl 5s 5bottom billion5 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: ar-uin- t)at any resour&e &urse must be &ontin-ent? (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 iamon s? 214

Attitudes of ma;or institutions

International institutions
T)e "nternational /onetary $un 6"/$7 )as publis)e papers is&ussin- )o= to a ress t)e resour&e &urse in 0i-eria 215 an Bots=ana?216 $or its part: t)e 4orl Ban# uses t)e term 5resour&e &urse5 21321; =)ile ar-uin- t)at it is not inevitable an &an be avoi e by -oo -overnan&e?

Oil companies
T)e attitu e of private oil &ompanies to=ar s a&&eptan&e of t)e term varies: )o=ever in a 2>>4 spee&) 0i&# Butler: B(5s vi&e-presi ent for ,trate-y an (oli&y *evelopment: ma e t)e follo=in- &omment in a&#no=le -ment of t)e p)enomenonA IT)e reality of t)e problems =)i&) )ave affli&te a number of ifferent &ountries as a result of natural resour&e evelopment is un eniable? " am &onvin&e t)at t)ere are t)in-s =e &an o to miti-ate many of t)e problems but it =oul be quite =ron- to start from a position of enial?I216 On t)e ot)er )an : in an a vertisement from 2>>6: +, major %''on/obil reje&te use of t)e term 5resour&e &urse5: but i say it supporte t)e %'tra&tive "n ustries Transparen&y "nitiative 6%"T"7 pro&ess be&ause it a&#no=le -es t)at -oo -overnan&e is ne&essary to eliver benefits from oil pro u&tion: an t)at transparen&y is a part of t)at? T)e a vertisement ma e t)e point t)at I ispara-in- t)e resour&e itself is not t)e ans=er?21<

213 !ollier: (aul 5T)e (lun ere (lanetA 4)y 4e /ust--an Co= 4e !an--/ana-e 0ature for .lobal (rosperity5: 05ford University Press: 2>11? 214 52a=s an !o es for t)e RResour&e !urseM5 05ford University: ,eptember 2>>3? 215 5A ressin- t)e 0atural Resour&e !urseA An "llustration from 0i-eria5: I(4: Buly 2>>3? 216 5%s&apin- from t)e Resour&e !urseA %vi en&e from Bots=ana an t)e Rest of t)e 4orl 5: I(4: 2>>3? 213 5(roperty Ri-)ts an t)e Resour&e !urse5: "orld Bank: 5 April 2>>3? 21; 5!ontributin- to evelopmentMH F8A =it) 4orl Ban# .roup ire&tor5: Critical !esource: Banuary 2>1>? 21< .arsten: !)ristina an 2in ) e /ontoya: /oni&a 5Transparen&y in a 0e= .lobal Or er5: )d&ard )lgar Publishing: 2>>;?

44

+conomic symptoms
Dutch Disease
,o-&alle 5*ut&) isease5 is t)e effe&t on a &ountry5s 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)erlan s =)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 lar-e inflo=s of forei-n &urren&y: =)i&) in turn ten s 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: a versely 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 spen in-? Overspen in- urin- a &ommo ity boom: t)an#s to a&&ess to &)eap &re it in international &apital mar#ets: &an lea to t)e a&&umulation of )i-) levels of ebt: lea in- to )i-) interest rate sprea s urin- perio s of lo=er natural resour&e pri&es? ,ome )ave attribute t)e 5resour&e &urse5 in oil-ri&) &ountries to t)e 5 ebt over)an-5 =)i&) o&&urre in t)e 1<3>s =)en t)ese &ountries use &ommo ities 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 stu y 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&lu e t)ere =as a statisti&al &orrelation bet=een in&rease oil pro u&tion an e'ports: an publi& ebt in t)e pro u&in- &ountry?222 T)e &ase of DeneEuela urin- t)e 1<3>s oil boom isplays t)e symptoms etaile above: =)ere (resi ent !arlos An res (ereE in&rease publi& spen in- ramati&ally: lea in- to )i-) levels of ebt an ensuin- mana-ement problems t)rou-) &ommo ity pri&e &y&les?223

Political symptoms
Weakening of institutions
/any politi&al s&ientists )ave outline a 5resour&e &urse5 =)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 un er t)e same pressure to raise ta'es in or er to provi e =elfare an publi& servi&es 6to a -reater or lesser e' tent epen in- on t)e e-ree of t)eir resour&e =ealt)7? ,tate institutions be&ome
22> 5/ineral-Ri&) !ountries an *ut&) *isease5: "orld Bank, :;;>221 !outin)o: 2eonor 5 T)e Resour&e !urse an $is&al (oli&y5: Cy1rus )conomic Policy !evie&: 2>11? 222 5*rillin- into *ebt5 Institute of Public Policy !esearch : 2>>5? 223 Causmann: Ri&ar o an Ro ri-ueE: $ran&is&o 5 DeneEuelaA Anatomy of a &ollapse5: 2>>6?

45

=ea#er be&ause t)ey o not evelop t)e same e-ree of is&ipline: t)rou-) merito &ra&y an a-ainst measure -oals an results? T)e most notable e'ponent of t)is t)eory )as been (rofessor Terry 2ynn 1arl: =)o stu ie t)e &ases of DeneEuela: 0i-eria: Al-eria 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? 0otable &ases in&lu eA O ,out) ,u an: =)ere t)e presen&e of oil rene=e tensions bet=een t)e 1)artoum -overnment in ,u an an t)e ne=ly forme &ountry? O T)e oil-ri&) !abin a re-ion of An-ola: =)ere a se&essionist movement )as flouris)e sin&e t)e is&overy of oil? O 0i-eria: =)ere t)e &on&entration of oil in t)e 0i-er *elta =as a &ontributin- fa&tor to t)e 0i-erian !ivil 4ar of 1<66-3>: an ever sin&e )as been a &ause of si-nifi&ant unrest?225

Avoidin5 the resource curse

/e&)anisms an poli&ies =)i&) )ave been propose to avoi t)e 5resour&e &urse5 in&lu eA simply leavin- t)e oil in t)e -roun 6one of t)e more e'treme propose solutions t)at allo=s an e&onomy an so&iety time to a just before inflo=s arrive: but oppose by t)e private se&tor7N e&onomi& iversifi&ation 6to evelop ot)er sour&es of value an re u&e epen en&y on mineral e'ports7N 5revenue sterilisation5 6to neutralise t)e impa&t of =in fall revenues by resistin- spen in- pressures7N an stabilisation fun s 6set up to invest revenues outsi e t)e omesti& e&onomy an -uar a-ainst flu&tuatin- &ommo ity pri&es7?226

Definition of 6ydrocarbon Reserves

*ifferent systems )ave been use to &lassify reserves of oil an -as sin&e t)e in ustry first evelope in t)e nineteent) &entury? But t)e most =i ely use efinitions to ay are provi e by t)e (etroleum Resour&es /ana-ement ,ystem of t)e Ameri&an ,o&iety of (etroleum %n-ineers 6,(%7?223 Reserve estimates are a major river of value for e'ploration an pro u&tion &ompan224 1arl: Terry 2ynn: 5 T)e (ara o' of (lentyA Oil Booms an (etro ,tates5: University of California Press: 1<<3? 225 5T)e 0atural Resour&e !urseA A ,urvey5: Harvard +ennedy School: $ebruary 2>1>? 226 5Resour&e "mpa&t - !urse or Blessin-H5: University of %undee: 25 /ar&) 2>>3? 223 5(etroleum Reserves 8 Resour&es *efinitions5: Society of Petroleum )ngineers: retrieve 1; Banuary 2>12?

46

ies? All reserves are estimates of un er-roun reservoirs =)i&) &annot be p)ysi&ally inspe&te an al=ays involve some e-ree of un&ertainty? Co=ever su&) systems are important in &reatin- a 5universal lan-ua-e5 of &lear terms an efinitions t)at result in reliable an easily &omparable reserve estimations for investors: re-ulators: -overnments an &onsumers?22; "t s)oul be note t)at aroun t)e =orl : -overnment a-en&ies an or-aniEations use sli-)tly ifferent efinitions?223 A&&or in- to t)e vi&e-presi ent of petroleum &onsultan&y Ry er ,&ott: t)ere )as been a tren to=ar s &ommissionin- e'ternal au its of estimate reserves? 4it) in&rease attention -iven to &orporate responsibility in finan&ial reportin-: )e asserts t)at oil an -as &ompanies are no= en-a-in- t)ir -party en-ineers to evaluate or au it petroleum reserves?22<

Cate5ories of reserves
A&&or in- to t)e ,(% .ui elines: 5reserves5 are a subset of 5resour&es5: representin- t)e part of resour&es =)i&) are &ommer&ially re&overable an )ave been justifie for evelopment? Reserves &an be subsequently ivi e into t)e follo=in- t)ree &ate-ories epen in- on &ertainty of re&overy?22;

!roved reserves
T)e )i-)est value &ate-ory of reserves is 5prove 5 reserves? (rove reserves )ave a 5reasonable &ertainty5 of bein- re&overe : =)i&) means a )i-) e-ree of &onfi en&e t)at t)e volumes =ill be re&overe ? To be &lear: reserves must )ave all &ommer&ial aspe&ts a resse ? "t is te&)ni&al issues =)i&) separate prove from unprove &ate-ories? 22;

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> pro u&in- &ountries? 23>

!robable and possible reserves

5(robable5 or 5possible5 reserves are lo=er &ate-ories of reserves: &ommonly &ombine an referre to as 5unprove reserves:5 =it) e&reasin- levels of te&)ni&al &ertainty? (robable reserves are volumes t)at are efine as 5less li#ely to be re&overe t)an prove : but more &ertain to be re&overe t)an (ossible Reserves5? (ossible reserves are reserves =)i&) analysis of -eolo-i&al an en-ineerin- ata su--ests 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 &onsi ere to be t)e 2( sum of prove an probable re22; 5,(% (etroleum Resour&es /ana-ement ,ystem .ui e for 0on-Te&)ni&al +sers5: Society of Petroleum )ngineers: retrieve 1; Banuary 2>12? 22< 5T)e Reserves Au it5 !yder Scott: retrieve 1; Banuary 2>12? 23> 5B( ,tatisti&al Revie= 2>><5: BP: 2>><? 231 5,(% (etroleum Resour&es /ana-ement ,ystem .ui e for 0on-Te&)ni&al +sers5: Society of Petroleum )ngineers: retrieve 1; Banuary 2>12?

43

serves?231

Resources
5Resour&es5 enotes less &ertainty t)an 5reserves5 be&ause some si-nifi&ant &ommer&ial or te&)ni&al )ur le must be over&ome prior to t)ere bein- &onfi en&e in t)e eventual pro u&tion of t)e volumes?231

ontingent resources
T)ese are resour&es t)at are potentially re&overable but not yet &onsi ere mature enou-) for &ommer&ial evelopment ue to te&)nolo-i&al or business )ur les? $or &ontin-ent resour&es to move into t)e reserves &ate-ory: t)e #ey &on itions: or &ontin-en&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&lu in- environmental an -overnmental approvals? T)ere also must be evi en&e of firm intention by a &ompanyMs mana-ement to pro&ee =it) evelopment =it)in a reasonable time frame 6typi&ally 5 years: t)ou-) it &oul be lon-er7? 231

!rospective resources
(rospe&tive resour&es are estimate volumes asso&iate =it) un is&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 i entifie on t)e basis of in ire&t evi en&e but =)i&) )ave not yet been rille ? T)is &lass represents a )i-)er ris# t)an &ontin-ent resour&es sin&e t)e ris# of is&overy is also a e ? $or prospe&tive resour&es to be&ome &lassifie as &ontin-ent resour&es: )y ro&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 un er appropriate evelopment proje&ts prepare ?231

Oil Field Depletion

Oil fiel epletion refers to t)e e&line in an oil fiel 5s pro u&tion over time: 232 =)en a fiel 5s re&overable resour&es be&ome e')auste an pro u&tion is re u&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 pro u&es an in&reasin- volume of oil until output eventually )its a pea#: after =)i&) t)e volume t)at &an be pumpe out of t)at fiel -ra ually e&lines? 234 T)e analysis of epletion rates is a #ey element in fore&astin- t)e future pro u&tion of oil reservoirs?233 A metri& often use to etermine t)e remainin- lifespan of an oil reserve is t)e 5reserves-to-pro u&tion ratio5: use to fore&ast t)e future availability of a
232 5T)e life of an oil reservoir5: /he 0il %rum: 14 Au-ust 2>>6? 233 5*epletion an *e&line !urve Analysis in !ru e Oil (ro u&tion5: lobal )nergy System: /ay 2>><? 234 5Oil $iel s an =)at t)ey o 6or mi-)t7 pro u&e: an =)en5 :*atural Hub: retrieve 1 $ebruary 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 pro u&tion at ma'imum levels? %n)an&e oil re&overy 6%OR7 is t)e t)ir an most a van&e sta-e 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 pro u&tion from a reservoir: usin- sop)isti&ate te&)nolo-i&al te&)niques to a ener-y to a reservoir to stimulate oil pro u&tion an in&rease re&overy fa&tor: or t)e amount of t)e reservoir5s total oil t)at is e'tra&te ?233 %OR also )as some &onsi erable ra=ba&#s: in&lu in- t)e relatively )i-) &ost of its implementation an : in some &ases: t)e unpre i&tability of its effe&tiveness?23; A&&or in- to t)e (etroleum Te&)nolo-y Transfer !oun&il: about 1> per&ent of all oil pro u&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 sta-e of an oil fiel 5s evelopment: oil is for&e out by pressure -enerate from -as present in t)e oil 6also #no=n as 5asso&iate -as57? 24> T)e natural pressure of t)e reservoir: or -ravity: rives oil into t)e =ellbore: &ombine =it) 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 reservoir5s ori-inal oil in pla&e is typi&ally pro u&e urin- primary re&overy? 241 "n t)e se&on ary sta-e: t)e reservoir is floo e =it) =ater or inje&te =it) -as to maintain suffi&ient pressure levels to ispla&e oil an rive it to t)e pro u&tion =ellbore?24> T)is sta-e e'ten s a fiel 5s pro u&tive life an results in t)e re&overy of 2> to 4> per&ent of t)e ori-inal oil in pla&e?241 %OR refers to t)e tertiary sta-e of evelopment: =)i&) involves t)e intro u&tion of flui s t)at t)e re u&e t)e vis&osity: or t)i&#ness: of t)e oil an improve its flo=? Tertiary re&overy enables pro u&ers to e'tra&t up to or over )alf of a reservoir5s ori-inal oil &ontent: epen in- on t)e reservoir an t)e te&)nique use ? 24>

235 5Reserves to (ro u&tion Ratio5: Investo1edia: retrieve ; Banuary 2>12? 236 5%n)an&e Oil Re&overy 6%OR75: /eledyne ISC0: Retrieve 1 $ebruary 2>12? 233 5Oil $iel .lossary5 Schlumberger: retrieve 1 $ebruary 2>12? 23; 5%n)an&e Oil Re&overyT!O2 "nje&tion5: 4ossil )nergy: Retrieve 1 $ebruary 2>12? 23< 5%n)an&e Oil Re&overy5: Petroleum /echnology /ransfer Council: retrieve 1 $ebruary 2>12? 24> 5%n)an&e Oil Re&overy 6%OR75: /eledyne ISC0: retrieve 1 $ebruary 2>12? 241 5%n)an&e Oil Re&overyT!O2 "nje&tion5: 4ossil )nergy: retrieve 1 $ebruary 2>12?

4<

Cate5ories of +OR techniques

T)e primary &ate-ories of %OR are t)ermal re&overy: -as inje&tion an &)emi&al inje&tion?241 O T)ermal %OR )as )istori&ally been t)e most =i ely applie ? 24> T)is met)o involves t)e intro u&tion of )eat: most &ommonly in t)e form of steam: into a reservoir to re u&e t)e vis&osity of t)e oil to be e'tra&te ? 241 O .as inje&tion uses -ases su&) as nitro-en or &arbon io'i e t)at e'pan in a reservoir to pus) a itional oil to t)e pro u&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 )y ro&arbon -ases an flue -ases 6t)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> O !)emi&al %OR -enerally involves t)e floo in- of a reservoir =it) =ater-soluble polymers: or lon--&)aine mole&ules: to )elp re u&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 mo erately vis&ous oils? 24> A number of ot)er %OR pro&esses )ave also evolve : in&lu in- t)e inje&tion of &arbonate =ater: mi&roor-anisms: foams: al#aline: an ot)er substan&es? T)ese )ave s)o=n varyin- e-rees of promise but require a itional evelopment to enter into more &ommon use?24> A&&or in- to t)e +, *epartment of %ner-y in *e&ember 2>11: t)ermal te&)niques a&&ounte for over 4> per&ent of %OR pro u&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 <ualities

Density
Oil ensity is -enerally e'presse in e-rees usin- an A(" s&ale? T)is is a spe&ifi& -ravity s&ale evelope by t)e Ameri&an (etroleum "nstitute 6A("7: esi-ne to measure t)e relative ensity of various petroleum liqui s? T)e measure is e'presse in e-rees an most values fall bet=een 1>S an 3>S? 243 T)e spe&ifi& -ravity of oil is its relative ensity to =ater at 6>S $aren)eit?244

242 5%n)an&e Oil Re&overyT!O2 "nje&tion5: 4ossil )nergy: Retrieve 1 $ebruary 2>12? 243 5A(" .ravity5: Schlumberger 0il lossary: retrieve 22 Banuary 2>12? 244 5Te&) Tal# - DeneEuela: )eavy &ru es: A(" -ravity an refinery -ains5: /he 0il %rum: < Banuary 2>11?

5>

"ight oil
Ot)er=ise #no=n as 5&onventional oil5: li-)t oil )as an A(" -ravity of 22S or over? 245 $or e'ample: ,au i Arabia5s ne= blen of super li-)t &ru e )as an A(" -ravity of 44S? 245 T)e oil pro u&e from 2ibyan fiel s is also typi&ally very 5li-)t5 an t)e &ountry5s nine e'port -ra es )ave A(" -ravities t)at ran-e 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 !ru e Oil )as an A(" -ravity of 13U? 243 Ceavy oils are usually not re&overable in t)eir natural state t)rou-) a =ell or usin- orinary pro u&tion met)o s? /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 san sI: bitumen s)ares many attributes of )eavy oil but is even more ense an vis&ous?24;

%ulphur content
!ru e oil &an also be measure in terms of sulp)ur &ontent 6ran-in- from 5s=eet5 to 5sour57? 5,=eet5 &ru e is usually efine as oil =it) a sulp)ur &ontent belo= >?5 per&ent: =)ile 5sour5 &ru e )as a sulp)ur &ontent of >?5 per&ent or over? 24<

Impact on refinin5
T)e ensity an 5sourness5 of &ru e oil fee sto&#s affe&ts t)e amount of pro&essinan &onversion ne&essary to a&)ieve =)at is #no=n as an optimal mi' of pro u&ts? 2i-)t: s=eet &ru e eman s a )i-)er pri&e t)an )eavier: sourer &ru e as it requires less pro&essin- an pro u&es a -reater per&enta-e of value-a e pro u&ts: su&) as -asoline: iesel an aviation fuel? Ceavier -ra es of fuel -enerally require a itional pro&essin- to pro u&er li-)ter pro u&ts?24<
245 54)at is Ceavy Oil an Co= is it $orme H5 : !ig#one: retrieve 22 Banuary 2>12? 246 5,au i5s 0e= ,uper 2i-)t !ru e Blen To Cit /ar#et "n April -,our&e5: Internationa )nergy Agency: 31 /ar&) 2>11? 243 5!ru e Oil Types5: A Barrel 4ull: 31 /ar&) 2>11? 24; 54)at is Ceavy Oil an Co= is it $orme H5: !ig#one: retrieve 22 Banuary 2>12? 24< 5Types of !ru e Oil5: *este 0il: retrieve 23 Banuary 2>12?

51

Crude oil blends

Blen e &ru e is a mi'ture of &ru e oils: blen e in t)e pipeline to &reate a &ru e =it) spe&ifi& p)ysi&al properties? T)is may be to re u&e vis&osity an ease transportation: or alternatively to &reate a e value &ompare to t)e ra= &ru e? 25> Oil pro u&in- &ountries: parti&ularly t)ose =it) a many ifferent qualities of &ru e from t)eir fiel s: must e&i e =)i&) bran t)ey =ill put on t)e international mar#et? T)ere =ere aroun 16> &ru e -ra es mar#ete -lobally as of 2>12? "n or er to optimise investments in pipelines an stora-e fa&ilities: &ountries ten to re u&e t)e number of mar#etable streams by blen in- ifferent oil -ra es? $or e'ample: t)e Brent blen in fa&t &omes from t)e blen in- of 15 ifferent -ra es of oil from t)e 0ort) ,ea? 251

Crude Oil <ualities in Iraq

!ru e oil foun in "raq varies si-nifi&antly in quality: =it) A(" -ravities -enerally ran-in- from 22S 6)eavy7 to 35S 6me ium - li-)t7? 252 Over 3> per&ent of national oil reserves are belo= 2;S A("251 an t)e "nternational %ner-y A-en&y 6"%A7 pre i&te in its 2>12 report on "raq t)at future pro u&tion is li#ely to in&lu e a lar-er s)are of )eavier &ru es?253 Co=ever some of t)e &ru es pro u&e at t)e Taq Taq fiel in t)e nort)er semi-autonomous 1ur istan re-ion are as li-)t as 4;S A(": ubbe by !euters as I&)ampa-ne &ru eI?254 !euters reporte in 0ovember 2>12 t)at "raq =as stru--lin- to fin buyers 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 &ru es &ome from Rumaila an 1ir#u#: t)e t=o lar-est a&tive fiel s? T)e t=o blen s use for e'port are t)e Basra 2i-)t blen : transporte by tan#er from t)e sout): an t)e 1ir#u# blen : by pipeline to t)e nort)? 256 "n terms of quality: t)e Basra 2i-)t blen is in t)e mi le of t)e mar#et: &lose to t)e -lobal avera-e 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 Basra 2i-)t API Gravity 34S Sulphur content 2?1V253

25> 5Blen e !ru e5: Schlumberger 0Il lossary9, retrieve 2< 0ovember 2>12? 251 5"raq oilA T)e &ru e oil quality ilemma5: ulf *e&s9, 11 0ovember 2>12? 252 5"raqi !ru e Ceavier *ue to $uel Blen in-A Tra ers5 Ira' )nergy: 1 Bune 2>11? 253 5"raq %ner-y Outloo#5: International )nergy Agency: 6 ,eptember 2>12? 254 51ur istan Taq Taq oil e'ports rise a)ea of ,ept ea line5 !euters: < O&tober 2>12? 255 52i-)t &ru e surplus spins =orl oil tra e &ompass5 !euters: 16 0ovember 2>12? 256 5"raq oilA T)e &ru e oil quality ilemma5 ulf *e&s9, << *ovember :;<:253 5"raqi !ru e Ceavier *ue to $uel Blen in-A Tra ers5: Ira' )nergy: 1 Bune 2>11?

52

Basra /e ium Basra Ceavy Basra Blen 1ir#u#

3>S 22-24S 32S 35?;S

253

2?6 V 3?4V 1?<5V nTa

*ue to t)e lar-e number of fiel s an ifferin- -ra es of &ru e 6parti&ularly in t)e ,out)7: as =ell as t)e limite sea outlet an e'port routes: t)e &ru e blen in- pro&ess in "raq &an be problemati& 256 an a&&or in- 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 fi-ures: as a result of t)e )eavier &ru es an )eavy fuel oil bein- blen e 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 blen insystem to ensure a relatively stable quality of its &ru e oil e'port streams? 25< Co=ever t)e "%A report also notes t)at mu&) of future eman for "raqi &ru es is to &ome from Asia: =)ere lar-e: mo ern refineries are equippe to eal =it) pro&essin- a ran-e of spe&ifi&ations?26>

Natural 0as
-hat is natural 5as:
About ;5 per&ent of natural -as pro u&e from &onventional =ells is met)ane: a )i-)ly flammable &ompoun ma e up of one &arbon atom an four )y ro-en atoms? 261 "t is &olourless an : in its pure form: o ourless? As t)e -as )as no o our: -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 6a &ubi& foot bein- one foot lon-: by one foot =i e: by one foot eep7? T)is volume is usually e'presse in B!$ 6billion &ubi& feet7: T!$ 6trillion &ubi& feet7 an /!$ 6t)ousan &ubi& feet7?263 "t &an also be measure in terms of &ubi& metres? A&&or in- to t)e +, *epartment of %ner-y: for many years natural -as =as &onsi ere =ort)less an is&ar e : an is still release by flarin- to ay in many &ountries? 262 0atural -as &an be foun as eit)er asso&iate -as: non-asso&iate -as: =et -as 6a type of non-asso&iate -as7 or &oal be met)ane?261
25; 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? 25< 5"raq oilA T)e &ru e oil quality ilemma5: ulf *e&s9, 11 0ovember 2>1226> 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? 261 5Oil an .as Resour&es an T)eir +ses5: /))IC: retrieve 13 $ebruary 2>12? 262 50atural .as5: US %e1artment of )nergy: retrieve 13 $ebruary 2>12? 263 50atural .as /easurement5: + (: retrieve 13 $ebruary 2>12?

53

'on(associated gas
0on-asso&iate -as is -as =)i&) is foun in reservoirs =)i&) o not &ontain si-nifi&ant quantities of &ru e oil? 264 "t often o&&urs at -reater ept)s =)ere )eat )as split all of t)e )y ro&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 -as is foun in asso&iation =it) &ru e oil: eit)er issolve in t)e oil or as a 5&ap5 of free -as above t)e oil? 4)ere it &annot be use : asso&iate -as is eit)er reinje& te into t)e =ell: flare or vente ?265

oal bed methane

!oal be met)ane 6!B/7 or &oal seam -as 6!,.7 is t)e natural -as e'tra&te from &oal be s urin- un er-roun &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 5bunsen burner5 in 1;;5 prove t)at -as &oul be use to provi e )eat for &oo#in- an =armin- buil in-s? 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 4orl 4ar in t)e 1<4>s? 266

Role of natural 5as in the ener5y mi#

T)e "nternational %ner-y A-en&y 6"%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 ener-y eman ?263 A&&or in- to t)e 2on on-base Petroleum )conomist: t)e -ro=in- interest in -as as an element in to ay5s ener-y mi' represents a Istru&tural s)ift in ener-y mar#ets?I 0atural -as )ol s several benefits as a fuel for a lo=-&arbon future: in&lu in-A O t)e lo=est &arbon footprint of all fossil fuels? O a s)orter lea time to buil -as-fire po=er plants an -reater operational fle'ibility? O ability to re u&e -reen)ouse -as emissions by 25 per&ent in t)e transport se&tor
264 50O0-A,,O!"AT%* .A, *%$"0"T"O05: 0il and as lossary: retrieve 13 $ebruary 2>12? 265 5Asso&iate .as5: A Barrel 4ull: retrieve 13 $ebruary 2>12? 266 5T)e Cistory of 0atural .as5: US %e1artment of )nergy: retrieve 13 $ebruary 2>12? 263 5.as &oul ma#e up 25V of -lobal ener-y mi' by 2>35A "%A5: Platts: 2>11?

54

&ompare to tra itional motor fuels?26; T)e "%A also points out t)at -as &an )elp to iversify ener-y supply an so improve ener-y 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 =i ely use =)ere t)ere is no infrastru&ture to ma#e use of t)e -as? Co=ever it is =i ely re&o-niEe as a =aste of ener-y an as environmentally an-erous in &ontributin- &arbon emissions to t)e atmosp)ere? 23> T)e top four 5flarers5 internationally by t)e .lobal .as $larin- (roje&t 6..$(75s 2>11 statisti&s =ere Russia: 0i-eria: "ran an "raq? Co=ever a&&or in- to Ira' 0il !e1ort: -as flarin- is a -lobal problem on t)e es&ent as pro u&in- &ountries are in&reasin-ly ma-netisin- 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 ?231

Natural 0as Flarin5 in Iraq

"n 2>12: as "raq =as rampin- up pro u&tion of &ru e oil: "raq flare an estimate < billion &ubi& metres 6b&m7 of asso&iate -as: ran#in- it amon- t)e top five flarin- nations in t)e =orl : a&&or in- to t)e 4or Ban#? T)e -as bein- flare =as enou-) to fuel all of "raq5s ele&tri& po=er nee s232 an : a&&or in- to a visor $abri&e /osneron *upin: t)e =aste -as itself is =ort) aroun +, G5 million per ay?231 Of t)e 1:;3; million &ubi& feet 6m&f7 per ay of natural -as pro u&e in t)e se&on )alf of 2>12: an avera-e of 1:253 million 66; per&ent7 =as flare ?233 As of 2>12 "raqi la=s an re-ulations allo=e flarin- of natural -as an by &ontra&t: oil fiel operators =ere not &ompensate for -as pro u&e in asso&iation =it) &ru e oil: t)us 5in&entivisin-5 flarin- a&tivities?232 Co=ever t)e ,out) .as (roje&t: a joint venture bet=een t)e Oil /inistry an oil major ,)ell is inten e as an attempt to a ress t)e problem by &apturin- an utilisin- asso&iate -as from a number of sout)ern oil fiel s?233 "n 2>12 ,)ell announ&e t)at t)e preliminary =or# it )a one in &apturinasso&iate -as in Basra &ut o=n flarin- by aroun 2> per&ent? 231

26; 5+n&onventional .as5s .lobal (otential5: Petroleum )conomist: 1; Buly 2>11? 26< 5Are 4e %nterin- a .ol en A-e of .asH5: International )nergy Agency: 2>11? 23> 5.lobal .as $larin- %stimates5:*0AA: retrieve 15 $ebruary 2>12? 231 54aste money: -lobal &on&ern over "raqMs persistent -as flarin-5:Ira' 0il !e1ort: 1 0ovember 2>11? 232 5/y en&ounter =it) -as flares in "raq5: "orld Bank: 1; Buly 2>11? 233 5.as flarin- )its unpre&e ente levels in "raq5: ())%: ; 0ovember 2>12?

55

Liquefied Natural 0as LN0!

20. is liquefie natural -as: a &lear: &olourless: non-to'i& liqui : 234 pro u&e by &oolin- natural -as to -26>S $a)ren)eit 6-16>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?235 20. ta#es up 6>> times less spa&e t)an natural -as in its -aseous form? 236 !onvertin- natural -as into 20. &an ma#e stran e natural -as eposits more e&onomi&ally viable: as &onstru&tin- pipelines &an be e'pensive? "n a ition: 20. =ill not e'plo e in an un&onfine environment: so in t)e unli#ely event of an 20. spill: t)e natural -as )as little &)an&e of i-nitin- an e'plosion? Ot)er benefits of 20. in&lu e t)at t)e liquefi&ation pro&ess removes o'y-en: &arbon io'i e: sulp)ur an =ater from t)e natural -as: resultin- in 20. =)i&) is almost pure met)ane? 236 On&e it rea&)es its estination: 20. is store as a liqui until it is =arme ba&# to natural -as via t)e pro&ess of re-asifi&ation?235

Production
As of early 2>12: t)ere =ere 2> 20. pro u&tion an e'port terminals =orl =i e: 63 import terminals an nearly 3>> 20. s)ips alto-et)er )an lin- appro'imately 13> million metri& tons of 20. every year? Oil major !ono&o()illips notes t)at t)ese numbers are pre i&te to in&rease ramati&ally over t)e ne't e&a e ue to t)e -ro=inpopularity of t)is &lean fuel sour&e? 233 20. plants are &apital intensive an rely on )eavy ebt? 23; But =)ile 20. is reasonably &ostly to pro u&e: a van&es in te&)nolo-y are re u&in- t)e &osts asso&iate =it) t)e liquefi&ation an re-asifi&ation pro&ess? 236 T)e BP "orld )nergy 0utlook in 2>12 prei&te t)at 20. tra e =ill -ro= t=i&e as fast as -lobal -as pro u&tion: t)at is: at a rate of 4?4 per&ent per annum?23<

Liquid Petroleum 0as LP0!

2iqui (etroleum .as 62(.7: also referre to as 5liquefie petroleum -as5: is a mi'ture of -aseous )y ro&arbons: pro u&e from natural -as an oil e'tra&tion 666 per&ent7 an from oil refinin- 634 per&ent7? Cen&e 2(. is an e'ample of an asso&iate -as? 2;> +nli#e liquefie natural -as 620.7: =)i&) must be be store at at -162S! in or er to re234 54)at is 20.H5: Shell: retrieve 13 $ebruary 2>12? 235 5Overvie=-About 20.5: Center for Li'uified *atural as: retrieve 13 $ebruary 2>12? 236 52iquifie 0atural .as 620.75: *atural as-org: retrieve 13 $ebruary 2>12? 233 54)at is 20.H5: ConocoPhilli1s: retrieve 13 $ebruary 2>12? 23; 5AnalysisA %ast Afri&a ris#s missin- 20. boom5: !euters: 1< ,eptember 2>12? 23< 54orl %ner-y Outloo# 2>3>5: BP: retrieve 13 $ebruary 2>12? 2;> 54)at is 2(.H5: 4lo as: 1 /ar&) 2>12?

56

main liquefie un er atmosp)eri& pressure: 2;1 2(. be&omes a liqui =)en &ompresse at room temperature for stora-e an transport?2;2 4)en natural -as is e'tra&te from t)e -roun : aroun <> per&ent of it is met)ane: an t)e rest is ma e 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 pro u&e urin- t)e &ru e oil refinin- pro&ess: usually pro u&in- aroun a 3 per&ent yiel ? 2;3 2(. is mostly ma e up of propane: butane or a mi' of t)e t=o? Ot)er elements present are primarily use as &)emi&al fee sto&#s rat)er t)an fuel?2;4 2(. =as first pro u&e in 1<1> by 4alter ,nellin- an t)e first &ar po=ere by pro pane ran in 1<13?2;5

3sa5e
2(. is popular as a fuel for omesti& use: as it is safe to store an portable? "t is use for portable &ampin- -rills: )ot =ater tan#s: refri-erators: &aravans: or for use on boats or isolate &abins or lo -es? T)e fuel also )as many in ustrial uses: in&lu inuses in metal =or#in-: -lass =or#in- an &erami&s: an for in ustrial for#lifts an )eavy liftin-?2;6 A&&or in- to in ustry &ommentator % .rabiano=s#i: 2(. =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 "n ia an in rural parts of t)e +,? Ce reports t)at t)e fuel is be&omin- an attra&tive sour&e of ener-y for people stru--lin- to meet in&reasin- )eatin- bills?2;3 T)e 4orl 2iquefie (etroleum .as Asso&iation 642(.A7 estimates t)at more t)an < million ve)i&les in 3; &ountries &urrently operate on 2(.? !ite benefits of usin- t)e fuel to po=er &ars rat)er t)an &onventional fuels in&lu e re u&e -reen)ouse -as emissions: -overnment in&entives an ta' brea#s in many &ountries: an affor ability? Co=ever &ars must first un er-o a &onversion pro&ess to be able to run on 2(.? 2;3 T)ou-) rare: 2(. 6parti&ularly propane an butane7 poses a ris# of su en epressuriEation an e'plosions urin- stora-e an transport: so is often subje&t to re-ulations on its pro u&tion: stora-e an transport?2;;

2;1 5Te&)nolo-y5: %een Shi11ing: retrieve 12 April 2>12? 2;2 52iquefie 0atural .as 620.7 - natural -as t)at is very: very &ol 5: )nergy 2uest: retrieve 12 April 2>12? 2;3 5Co= 2iquefie (etroleum .as 4or#s5: Ho&Stuff"orks: retrieve 1 /ar&) 2>12? 2;4 52iquefie (etroleum .as 62(.75: "indo& on State overnment: retrieve 1 /ar&) 2>12? 2;5 52(.A A Cistory5: )5traordinary !oad /ri1: retrieve 1 /ar&) 2>12? 2;6 52(.A A Cistory5: )5traordinary !oad /ri1: retrieve 1 /ar&) 2>12? 2;3 5Co= 2iquefie (etroleum .as 4or#s5: Ho&Stuff"orks: retrieve 1 /ar&) 2>12? 2;; 52iquefie (etroleum .as 62(.75: "indo& on State overnment: retrieve 1 /ar&) 2>12?

53

LP0 mar=ets
"n &ountries li#e "n ia: =)i&) o not )ave reliable oil or natural -as supplies: 2(. ma#es up a major s)are of t)e ener-y mi'? "n su&) &ases: many every ay )eatin- an &oo#in- nee s are supplie by propane instea of oil or &oal? 2;3 A&&or in- to t)e 2( .as Asso&iation: rapi population -ro=t) in many of t)e =orl 5s evelopin- &ountries )as outpa&e t)e in&rease in mo ern ener-y provision: a -ap =)i&) &reates an opportunity for 2(. -as mar#ets?2;<

LP0 in Iraq
2(. is a #ey )ouse)ol fuel in "raq for &oo#in- at )ome an in restaurants? A&&or into transportation a visor (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 2(. imports by lan an sea? "n t)e aftermat) of t)e 2>>3 =ar s)orta-es of 2(. &ylin ers =ere seen: an rationinintro u&e in t)e main &ities? But a bla&# mar#et emer-e =)ere t)e &ost of a &ylin er &oul be 2 - 4 times )i-)er?2<> (lants at 1ir#u# an Basra are t)e main sour&e of omesti& supplies? 2<> "n 2>11 a furt)er plant =as opene at 1)or /or in t)e nort)ern 1ur istan re-ion: =)i&) pro u&es 2(.?2<1

3nconventional +ner5y %ources

A&&or in- to oilfiel servi&es provi er ,&)lumber-er: un&onventional resour&es is an umbrella term referrin- to oil an natural -as pro u&e by means t)at o not meet t)e &riteria for &onventional pro u&tion? +n&onventional oil &onsists of a =i er variety of liqui sour&es t)an &onventional oil in&lu in- oil san s: e'tra )eavy oil: -as-to-liqui s an ot)er liqui s? "n -eneral &onventional oil is easier an &)eaper to pro u&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 epen in- on t)e availability of e'ploration an pro u&tion te&)nolo-ies: t)e e&onomi& environment an ot)er fa&tors? As of 2>11 for e'ample resour&es su&) as &oal be met)ane 6!B/7: s)ale -as: fra&ture reservoirs an ti-)t -as san s are &onsi ere un&onventional resour&es?2<3 /any in ustry analysts )ave pointe to a si-nifi&ant future role for 5un&onventionals5
2;< 5*evelopin- Rural /ar#ets for 2( .as5: "orld LP as Association: 2>>5? 2<> 5"raq 2(.A A ,tru--le5: (oten 8 (artners, 2< Banuary 2>>4? 2<1 5$ire at *ana .as 2(. plant in "raq #ills one5: !euters, :4 Bune 2>12? 2<2 5$AFs about oil5: International )nergy Agency: retrieve 2< 0ovember 2>12? 2<3 5+n&onventional resour&es5: Schlumberger: retrieve < $ebruary 2>12?

5;

in t)e ener-y mi' in many parts of t)e =orl ? B( estimates t)at un&onventional -as =ill a&&ount for 53 per&ent of +, pro u&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 nee s 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 ener-y resour&es t)at in most pla&es: e'ploitation of su&) resour&es oes not enjoy t)e e-ree of so&ial a&&eptan&e require in or er 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 pro u&ts is a &ommon feature in evelopin- &ountries?2<5 Co=ever fuel subsi ies &over a =i e ran-e of -overnment a&tions t)at lo=er t)e &ost of fossil fuels? 2<6 A report by t)e Or-anisation for %&onomi& !o-operation an *evelopment 6O%!*7 in 2>11 liste over 25> in ivi ual bu -etary an ta'ation me&)anisms for alterin- t)e pri&e of fossil fuels:2<3 an t)erefore estimatin- fuel subsi ies &an be iffi&ult? T)e most &ommonly use met)o olo-y for quantifyin- fuel subsi ies: #no=n as t)e pri&e--ap approa&): &al&ulates subsi ies 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 avera-e pri&e pai by t)e en user =it) a referen&e pri&e t)at &orrespon s to t)e full &ost of supply? A&&or in- to t)e 4as)in-ton-base !enter for .lobal *evelopment: most oil e'porters subsi ise t)eir fuel pri&es omesti&ally: sometimes at very lo= pri&es an implyin- a lar-e &ost for -overnments?2<< T)e "nternational %ner-y A-en&y 6"%A7 estimates t)at t)e &ost of fossil-fuel subsi ies amounte to +,G 4>< billion =orl =i e in 2>1>: an t)ey pre i&t t)at subsi ies &oul rise to +,G 66> billion by 2>2>: equatin- to >?3 per &ent of -lobal .ross *omesti& (ro u&t 6.*(7? 3>> *euts&)e Ban# sai t)at in 2>1>: 3> per&ent of fuel subsi ies =ere ma e in t)e =orl Ms major oil an -as e'portin- nations: an t)at su&) subsi ies )ave been instrumental in rivin- an in&rease in omesti& eman =it)in Or-aniEation of t)e (etroleum %'portin- 6O(%!7 &ountries an ot)er oile'portin- &ountries in t)e 2>>>s?3>1
2<4 5T)e +,5 future in un&onventional: says B(5: Petroleum )conomist: 23 /ar&) 2>11? 2<5 5T)e /a-nitu e an *istribution of $uel ,ubsi iesA %vi en&e from Bolivia: .)ana: Bor an: /ali: an ,ri 2an#a5: I(4: 2>>6? 2<6 5$ossil $uel ,ubsi ies5: Price of 0il: retrieve 1< April 2>12? 2<3 5"nventory of estimate bu -etary support an ta' e'pen itures for fossil fuels5: 0)C%: 2>11? 2<; 5$ossil-fuel subsi ies J met)o olo-y an assumptions5: International )nergy Agency: retrieve 1< April 2>12? 2<< 50i-erians *eman !)eap .as: But $uel ,ubsi ies Are 0OT (ro-(oor5: Center for lobal %evelo1ment: 6 Banuary 2>12? 3>> 54orl %ner-y Outloo# 2>115: International )nergy Agency: 2>11? 3>1 5!ru e OilA "&eber- .limpse Off 4est Afri&a5: %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 subsi ies in absolute terms in 2>1>: alon- =it) t)e relative value of su&) subsi ies as a s)are of .ross *omesti& (ro u&t 6.*(7?3>23>3
Country "ran ,au i Arabia Russia "n ia !)ina %-ypt DeneEuela +A% "n onesia +Ebe#istan "raq Al-eria /e'i&o T)ailan +#raine Total Fossil-Fuel Subsidies Fossil-Fuel Subsidies (US $ billions as a share of G!P ;>?; 43?5 3<?3 22?3 21?3 2>?3 1<?< 1;?2 16?> 12?> 11?4 1>?6 <?5 ;?4 3?< 22?6V <?;V 2?3V 1?4V >?4V <?3V 6?<V 6V 2?5V 3>?5V 13?;V 6?6V >?<V 2?3V 5?6V

Criticism
T)e "nternational %ner-y A-en&y 6"%A7 sai in a 2>11 report t)at t)e normal rationale for fuel subsi ies is t)at t)ey promote e&onomi& evelopment an alleviate poverty? Co=ever t)ey ar-ue t)at subsi ies &an )ave uninten e &onsequen&es su&) as en&oura-in- =asteful &onsumption: is&oura-in- ener-y effi&ien&y an re u&in- t)e &ompetitiveness of rene=able fuels? !ru&ially t)e "%A reje&te t)e ar-ument t)at fuel subsi ies promote evelopment: ar-uin- t)at instea t)ey foster inequality t)rou-) isproportionately benefitin- ri&)er )ouse)ol s =)o are more li#ely to o=n fuel-&onsumin- &ars an ele&tri&al applian&es? T)erefore t)e "%A &on&lu e t)at fuel subsi ies 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 subsi ies in 2>1> rea&)in- t)e poorest 2> per&ent of t)e -lobal population?3>4 .2> 2ea ers )ave also &riti&ise fuel subsi ies: a-reein- in 2>>< to
3>2 5$ossil fuel subsi iesA a tour of t)e ata5: /he uardian: retrieve 1< April 2>12? 3>3 5$ossil-$uel &onsumption subsi y rate as a proportion of t)e full &ost of supply: 2>1>5: International )nergy Agency: 2>12? 3>4 54orl %ner-y Outloo# 2>115: International )nergy Agency: 2>11?

6>

Irationalise an p)ase out over t)e me ium term ineffi&ient fossil-fuel subsi iesI: =it) t)e lea ers of t)e Asia-(a&ifi& %&onomi& !ooperation 6A(%!7 ma#in- a similar &ommitment t)e same year?3>5 "n /ar&) 2>12 a +nite 0ations *evelopment (ro-ramme 6+0*(7 report put for=ar t)e &ase for eliminatin- fossil fuel subsi ies: ar-uin- t)at t)e savin-s ma e &oul be use to )elp t)e poorest &itiEens &ope =it) risin- =orl ener-y pri&es? On top of t)is: t)e report sai t)at t)e move =oul a ress &limate &)an-e: re u&e ener-y =aste: &ut -overnment e'pen iture an minimise so&ial inequality? 3>6 BalaEs Corvat): t)e report5s lea aut)or: pointe out t)at in %urope an !entral Asia t)e elimination of fuel subsi ies )as been follo=e by bot) e&onomi& -ro=t) an a fall in -reen)ouse -as pro u&tion: =)i&) I-ives quite a bit of =ei-)t to t)e ar-ument t)at t)is &an =or#I? Bet=een 1<<> an 2>>; -ross omesti& pro u&t 6.*(7 e'pan e by 22 per&ent in t)e re-ion as a =)ole =)ilst &arbon emissions fell by 2; per&ent - t)e lar-est re-ional e&line in t)e =orl ?3>3

+limination of subsidies
T)e elimination of fuel subsi ies 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 subsi ies =as one of t)e #ey motivations be)in t)e violent 5!ara&aEo5 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 subsi y &uts? "n Banuary 2>12 0i-eria e'perien&e a =ave of protests in response to t)e -overn ment5s e&ision to remove subsi ies on importe oil pro u&ts: for&in- t)e -overnment to partially re-instate t)e subsi ies? 31> .)anaian fuel pri&es in&rease by about 2> per&ent =)en t)eir fuel subsi y =as &ut at t)e en of 2>11: 311 &ausin- &ivil so&iety -roups to tal# of nation=i e stri#es312313 an for&in- a poli&y reversal in $ebruary 2>12? 314 "n /ar&) 2>12 t)e "n onesian -overnment =as for&e to rule out a fuel subsi y &ut after =ee#s of protests a&ross t)e &ountry? "n onesian offi&ials =ere =ary of t)e politi&al &onsequen&es of fuel pri&e )i#es - in 1<<; a fuel pri&e rise in "n onesia )elpe tri--er
3>5 5"nventory of estimate bu -etary support an ta' e'pen itures for fossil fuels5: 0)C%: 2>11? 3>6 5$rom Transition to Transformation5: United *ations %evelo1ment Programme: retrieve 1; April 2>12? 3>3 5!uttin- fuel subsi ies #ey to sustainable evelopment J report5: Alert *et: 13 April 2>12? 3>; 5Removal of $uel ,ubsi ies in 0i-eriaA An %&onomi& 0e&essity an a (oliti&al *ilemma5: Brookings Institute: 1> Banuary 2>12? 3>< 5!ara&aEo 4as 5$orerunner5 to Anti-0eoliberalism (rotests: ,tates DeneEuela5s !)WveE5: ?ene#uela Analysis: 6 O&tober 2>11? 31> 5!ru e OilA "&eber- .limpse Off 4est Afri&a5: %eutsche Bank: retrieve 1< April 2>12? 311 5Co= .)ana: TanEania: +-an a ta&#le fuel subsi y5: Business%ay: 1; Banuary 2>12? 312 5.)ana Reinstates $uel ,ubsi y But Ci-)er Transport $ares Remain5: Sahara!e1orters-com: ; $ebruary 2>12? 313 5(rotests: stri#es may erupt in .)ana over removal of fuel subsi y5: Punch: 1< Banuary 2>12? 314 5.)anaA mi'in- politi&s an fuel pri&es5: 4inancial /imes: < $ebruary 2>12?

61

stu ent 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 in ustry 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&lu e seismi& testin- 6mappin- t)e -eolo-i&al stru&ture beneat) t)e -roun 7: transport servi&es 6su&) as movement of lan an =ater ri-s7 an ire&tional servi&es 6su&) as an-le or )oriEontal )oles7? 316 ,tate-o=ne oil &ompanies an international oil &ompanies 6"O!s7 often la&# su&) te&)ni&al an -eolo-i&al s#ills an so turn to servi&e &ompanies? 313 A&&or in- to a 2>1> report by .B" Resear&): t)e -lobal oilfiel servi&es in ustry )as =itnesse &onsi erable -ro=t) in re&ent years? "t is e'pe&te to be&ome a G2>> billion in ustry by 2>15 6up from G14> billion in 2>>;7? "n part t)is is ue to t)e -ro=t) in a&tivity in offs)ore fiel s aroun t)e =orl ? 31;

*a;or trends
Unconventionals and offshore drilling
"n ustry observers pre i&t t)at t)e bur-eonin- un&onventional ener-y in ustry =ill &reate a boost in eman for t)e servi&es in ustry? (ro u&tion of s)ale oil an ot)er un&onventionals brin-s lo-isti&al an te&)nolo-i&al &)allen-es an eman s a )u-e in&rease in t)e number of ri-s supplie ? A sur-e 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 provi er 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 bu -ets =oul rise by aroun 14 per&ent in 2>11 to +, G533 billion? A&&or in- 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 or er to a&&ess s)ale oil an s)ale -as?31<

Demand for local content

A&&or in- to Ayman Asfari: !%O of +1-base (etrofa&: national oil &ompanies 60O!s7 are in&reasin-ly eman in- to see 5lo&al &ontent5 6ie? lo&al operators7 playin- a part in ne= &ontra&ts for e'ploration: pro u&tion an plant &onstru&tion? T)is puts interna315 5%mer-in- Asia stru--les to &ut soarin- fuel subsi ies5: 4inancial /ribune: 1 April 2>12? 316 5"n ustry Can boo#A T)e Oil ,ervi&es "n ustry5: Investo1edia: retrieve 12 /ar&) 2>12? 313 5T)e oil-servi&es in ustryA Ri--in- t)e mar#et5: )conomist: 23 Bune 2>11? 31; 5T)e $uture of t)e Oil $iel s ,ervi&es "n ustry to 2>15 - Reboun in %'ploration an *rillinA&tivity *rives .ro=t)5: BI !esearch: /ay 2>1>? 31< 5T)e oil-servi&es in ustryA Ri--in- t)e mar#et5: )conomist: 23 Bune 2>11?

62

tional oil &ompanies at a isa vanta-e an &reates an opportunity for oil servi&es &ompanies to buil assets =it) lo&al partners: maintain t)at asset for a perio of time an t)en 5)an it ba&#5 to t)e 0O! to run in t)e lon- term? 32>

8ey industry players

A&&or in- to Arabian 0il and as: as of 2>>; t)e ten lar-est oilfiel servi&e &ompanies -lobally =ereA 1? ,&)lumber-er 2imite 2? Calliburton 3? ,aipem 4? Transo&ean 2t ? 5? Ba#er Cu-)es 6? $luor 3? 4eat)erfor "nternational ;? BB ,ervi&es !ompany <? (etrofa& 1>? !)ina Oilfiel ,ervi&es 2t ?

An )conomist report su--ests t)at by offerin- a full ran-e of oilfiel servi&es: t)e 5bifour5 of t)e in ustry 6,&)lumber-er: Calliburton: Ba#er Cu-)es an 4eat)erfor "nternational7 enjoy an a vanta-e 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 stu y to i entify t)e 1>> most innovative &ompanies -lobally? T)ey foun t)at t)e oilfiel servi&es in ustries a&&ounte for si' of t)e top 1>>? T=o of t)ese =ere ,&)lumber-er an Calliburton: an a furt)er t=o =ere lea in- rillin- equipment &ompanies $/! Te&)nolo-ies an !ameron "nternational? T)e remainin- t=o =ere !)ina Oilfiel ,ervi&es an Tenaris ,A?322

32> 5Ayman Asfari on (etrofa&5s roa to *amas&us5: /elegra1h: 3> O&tober 2>1>? 321 5T)e oil-servi&es in ustryA Ri--in- t)e mar#et5: )conomist: 23 Bune 2>11? 322 5/usin-sA T)e "nnovators in T)e Oilfiel ,ervi&e "n ustry " entifie 5: !ig6one: 3> O&tober 2>1>?

63

Regulatory Frame ork

Overvie$ of Re5ulatory Frame$or= in Iraq
"raq5s oil an -as in ustry operates un er t)e frame=or# lai out by t)e 2>>5 !onsti tution? 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 &ountry5s natural resour&es: t)ere is less e'pli&it &larifi&ation over t)e question of juris i&tion over )y ro&arbon e'ploration an evelopment bet=een t)e &entral -overnment an t)e re-ions? A ne= )y ro&arbons la= inten e to &reate a more stable investment re-ime remaine stalle in parliament as of 2>12: an in t)e meantime t)e fe eral system of resour&e evelopment 6usin- te&)ni&al servi&e &ontra&ts7 &o-e'ists =it) t)e 1ur istan Re-ional .overnment5s approa&) 6preferrin- pro u&tion s)arin- a-reements7: =)i&) are &onteste by &entral -overnment?323 T)e nort)ern 1ur s )ave pursue an in epen ent oil poli&y an too# an important step to=ar s t)at en by raftin- t)eir o=n oil la= in 2>>3? 324

9ypes of Oil Contracts

,everal types of oil &ontra&ts are in use t)rou-)out t)e =orl A &on&essions: in =)i&) t)e &ontra&tor o=ns t)e oil in t)e -roun ? pro u&tion s)arin- a-reements 6(,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 6servi&e &ontra&ts are often epi&te as a subset of (,As7? Boint ventures 6BDs7: in =)i&) t)e state enters into partners)ip =it) one or more oil &ompanies?

T)e publi&ation by Berlin-base OpenOil: 5Oil !ontra&tsA Co= to rea an un erstan t)em5: notes t)at it is rare to fin any &ontra&t t)at fits &leanly into any one of t)ese &ate-ories: )o=ever: an in reality most &ontra&ts &ombine some elements of ea&)? 325
323 5"raq %ner-y Outloo#5: I)A: < O&tober 2>12? 324 5"raq an t)e 1ur s: t)e )i-) sta#es )y ro&arbons -ambit5: International Crisis rou1: 1< April 2>12? 325 5+n erstan in- Oil !ontra&ts5: 01en0il: retrieve 14 Banuary 2>13?

64

All oil &ontra&ts must a ress t=o #ey issues: a&&or in- to Revenue 4at&) "nstitute 6R4"7A )o= proXts: often &alle IrentsI: are ivi e bet=een t)e -overnment an parti&ipatin- &ompanies an )o= &osts are to be treate ?326

Concessions
!on&essions are t)e ol est 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?323 4)en t)ey =ere introu&e aroun t)e =orl : &on&essions =ere one-si e &ontra&ts favorin- &ompanies: a&&or in- to Revenue 4at&): =)en many of t)e resour&e-ri&) nations of to ay =ere epen en&ies: &olonies: or prote&torates of ot)er states or empires?326 !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 un er 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&es in&lu e : 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? 4)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 pro u&e ? 323 !ompanies &ompete by offerin- bi s: often &ouple =it) si-nin- bonuses: for t)e li&ense to t)ese ri-)ts? T)is type of a-reement is quite &ommon t)rou-)out t)e =orl an is use in 1u=ait: ,u an: An-ola: an %&ua or: amon- ot)er &ountries? 326

Advantages and disadvantages

$or -overnments: &on&ession &ontra&ts )ave t)e a vanta-e of bein- relatively strai-)tfor=ar &ompare to ot)er #in s of a-reements: an t)e e-ree of professional support an e'pertise require is often less &omple' t)an t)at nee e to ne-otiate BDs or (,As? Also: t)e )ost -overnment #eeps t)e fees pai by t)e &ontra&tor re-ar less of =)et)er oil is foun an &ommer&ial pro u&tion ta#es pla&e? All finan&ial ris#s of evelopment: in&lu in- t)e &osts of e'ploration: are absorbe by t)e &ontra&tor? T)e main isa vanta-e: for -overnments: of &on&ession &ontra&ts is t)at &ompanies bi in- for t)e &ontra&t ten to be more &autious in t)eir bi s? "f t)ere oil an -as reserves are not proven t)en t)ere is no -uarantee t)at a &ompany5s &osts =ill be &overe : so t)e )ost -overnment may not ma'imiEe its potential return?326

Production sharin5 a5reements

(ro u&tion s)arin- a-reements 6(,As7: sometimes &alle pro u&tion s)arin- &ontra&ts 6(,!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 -overnment5s oil on be)alf of t)e -overnment? T)e (,A =as first use in "n onesia in 1<66: =)en t)e -overnment e&i e to maintain
326 5A ReporterMs .ui e to %ner-y an *evelopment5: !evenue "atch: retrieve 14 Banuary 2>13? 323 5+n erstan in- Oil !ontra&ts5: 01en0il: retrieve 14 Banuary 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 6or a portion of it7 on&e it )a been e'tra&te ? "n "n onesia: a&&or in- to Revenue 4at&): t)e &on&ession li&ensinmet)o )a been is&re ite as a le-a&y of imperialisti& an &olonial perio s an t)e (,A system =as evelope in t)e &onte't of a broa er movement of 5resour&e nation alism5 amon- oil-pro u&in- &ountries =orl =i e?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 invest ment: an re&eive a s)are of annual earnin-s - 5&ost oil5 - to t)is effe&t? On&e t)e &ompanies )ave use annual earnin-s to repay t)emselves: t)e rest - 5profit oil5 - is s)are a&&or in- to t)e a-ree per&enta-e 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 arran-ement: an a )ost -overnment )as t)e a e a vanta-e t)at it s)ares any potential proXts =it)out )avin- to ma#e an investment: unless it a-ree to o so? $or &ompanies: t)e a vanta-e 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 surren ers its ri-)t to a opt ne= la=s an re-ulations if t)ey a versely impa&t any ri-)ts of t)e oil &ompany un er t)e (,A?32< A isa vanta-e of t)e (,A for )ost -overnments is t)at it puts a premium on )i-)ly professional ne-otiations: an t)e -overnment must )ave a&&ess to te&)ni&al: environmental: Xnan&ial: &ommer&ial: an le-al e'pertise? T)is is more feasible for some oilri&) &ountries t)an ot)ers?32<

%ervice contracts
2i#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 5title5: to t)e oil pro u&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 -overnment5s oil? 32;

>oint ventures
Anot)er arran-ement: sometimes &onsi ere to be a fourt) type of &ontra&tual arran-ement: is t)e joint venture 6BD7: =)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 BD itself is in t)is &ase a=ar e t)e ri-)ts to e'plore: evelop: pro u&e an sell petroleum?32; Be&ause t)ere is no &ommonly-a&&epte form or stru&ture for BDs: t)ey are less &ommonly use as t)e basi& a-reement bet=een an oil &ompany an a )ost -overnment? BDs require )ost -overnments an &ompanies to o t)in-s jointly: so if
32; 5+n erstan in- Oil !ontra&ts5: 01en0il: retrieve 14 Banuary 2>13? 32< 5A ReporterMs .ui e to %ner-y an *evelopment5: !evenue "atch: retrieve 14 Banuary 2>13?

66

t)e parties fail to =or# to-et)er t)e ne-otiations &an be painsta#in- an &ommon?33>

isa-reement

Advantages and disadvantages

$or t)e -overnment: t)e only a vanta-e of a BD 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 isa vanta-es of BDs is t)at t)ey require more e'ten e ne-otiations an require mu&) more le-al a vi&e be&ause t)eir format is so ambi-uous? A itionally: &osts must also be s)are bet=een t)e parties: meanin- t)at t)e )ost -overnment is a ire&t an responsible parti&ipant in t)e natural resour&e e'tra&tion: an responsibility also brin-s =it) it liability: in&lu in- for environmental ama-e?33>

9reatment of Oil in Iraq4s 1//? Constitution

T)e "raqi !onstitution of 2>>5 fun&tions as t)e re-ulatory frame=or# of "raq5s oil an -as se&tor? T)e !onstitution &ontains several provisions t)at a ress: in some=)at va-ue 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) "raq5s natural resour&esA arti&les 111 an 112?332 Arti&le 111 of t)e !onstitution statesA
Oil an -as are o=ne by all t)e people of "raq in all t)e re-ions 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 -eo-rap)i&al or politi&al re-ion? 331 Arti&le 112 of t)e !onstitution statesA
$irstA T)e fe eral -overnment: =it) t)e pro u&in- -overnorates an re-ional -overnments: s)all un erta#e t)e mana-ement of oil an -as e'tra&te from present fiel s: provi e t)at it istributes its revenues in a fair manner in proportion to t)e population istribution in all parts of t)e &ountry: spe&ifyin- an allotment for a spe&ifie perio for t)e ama-e re-ions =)i&) =ere unjustly eprive of t)em by t)e former re-ime: an t)e re-ions t)at =ere ama-e after=ar s in a =ay t)at ensures balan&e evelopment in ifferent areas of t)e &ountry: an t)is s)all be re-ulate by a la=?

33> 5A ReporterMs .ui e to %ner-y an *evelopment5: !evenue "atch: retrieve 14 Banuary 2>13? 331 5Oil an -as &ontra&ts in "raq5: "ho9s "ho Legal: Buly 2>1>? 332 5"raqi !onstitution5: United *ations Assistance (ission for Ira' : retrieve 14 *e&ember 2>11?

63

,e&on A T)e fe eral -overnment: =it) t)e pro u&in- re-ional an -overnorate -overnments: s)all to-et)er formulate t)e ne&essary strate-i& 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 a van&e te&)niques of t)e mar#et prin&iples an en&oura-in- investment? 332

Be&ause t)e term 5present fiel s5 is not efine : it remains un&lear =)et)er it in&lu es only fiel s t)at are &urrently pro u&in- or if it e'ten s to ot)er fiel s? ,imilarly: =)et)er t)e &urrently pro u&in- fiel s in&lu e partially evelope fiel s also remains un&lear?%rrorA Referen&e sour&e not foun T)e proper roles an aut)orities of fe eral an re-ional aut)orities for equitably s)arin- oil an -as an ma#in- strate-i& e&isions is a furt)er point of &ontention? 333 T)e "raqi fe eral -overnment an t)e 1ur istan Re-ional .overnment 61R.7 &ontinue to &las) over t)is: =)i&) is =)y ne= se&tor le-islation as of late 2>12 remaine stalle ? 334 T)e fe eral -overnment maintains t)at t)e !onstitution oes not allo= t)e 1R. to a opt unilateral an permanent measures over t)e mana-ement of oil an -as fiel s? +ner t)is interpretation any &ontra&t si-ne after t)e raft oil an -as la= =as a-ree in $ebruary 2>>3 is eeme 5ille-al5 until revie=e an approve by t)e "raqi /inistry of Oil?335 0onet)eless: t)e !onstitution oes not e'pressly aut)oriEe eit)er t)e /inistry of Oil or t)e /inistry5s (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7 to a=ar &ontra&ts to international oil &ompanies 6"O!s7 eit)er? T)e /inistry of Oil interprets t)e le-ality of &ontra&ts a=ar e to "O!s on t)e -roun s t)atA 17 t)e &onstitutional requirement for t)e approval of t)e !oun&il of Representatives 336 6t)e 325-seat main ele&te bo y of representatives in "raq7 333 only applies to international treaties an a-reements bet=een t)e ,tate of "raq an ot)er states: so &ommer &ial &ontra&ts bet=een "raqi re-ional oil &ompanies an "O!s o not nee su&) approval: an 27 t)e te&)ni&al servi&e &ontra&ts 6T,!s7 =ere a=ar e un er t)e propose Cy ro&arbon 2a= 6 espite t)e fa&t t)at t)is is not yet approve by t)e !oun&il of Representat ives7?336

6ydrocarbon Le5islation in Iraq

T)e 2>>5 !onstitution &alle for le-islation -overnin- t)e oil se&tor 33; an various rafts of ne= fe eral )y ro&arbons la=s )ave been un er is&ussion in "raq sin&e 2>>6? *elays )ave arisen lar-ely as a &onsequen&e of la&# of &onsensus bet=een &entral -ov 333 5"raq5s 0e't .overnmentA 4)at o t)e 1ur s 4antH5: /ime: 6 O&tober 2>1>? 334 5+(*AT% 2 - "raq5s ,)a)ristani retains )ar line on 1ur is) oil5 !euters: 1> O&tober 2>11? 335 5Oil po=er stru--le as +, leaves "raq5: C** :12 *e&ember 2>11? 336 5Oil an -as &ontra&ts in "raq5: "ho9s "ho Legal, Buly 2>1>? 333 5$a&t ,)eetA "raq5s !oun&il of Representative %le&tion5: United *ations Assistance (ission for Ira' : 11 $ebruary 2>1>? 33; 5Oil e'perts ebate a ne= state oil &ompany5: Ira' 0il !e1ort: 16 Banuary 2>11?

6;

ernment an t)e re-ions?33< Ben 2an o of Ira' 0il !e1ort -oes so far as to assert t)at t)e le-islation )as be&ome t)e -roun s for a 5pro'y battle5 over t)e balan&e of po=ers bet=een t)e &entral -overnment: t)e semi-autonomous 1ur istan re-ion: an t)e ot)er provin&es?33; T)e mu&)- is&usse raft oil an -as la= 6or raft )y ro&arbon la=7: #ey to resolvinlon--stan in- isputes over t)e e'ploitation of "raq5s reserves an boostin- pro u&tion: first re&eive approval by t)e "raqi !oun&il of /inisters in $ebruary 2>>3? 336 Co=ever its approval by (arliament )as been repeate ly elaye by t)e politi&al stalemate bet=een Ba-) a an t)e re-ions? *ue to t)e on-oin- politi&al isputes: as of late 2>12 no frame=or# la= )a been passe into la=: an t=o &ompetin- rafts of t)e o&ument =ere on t)e table a=aitin- furt)er is&ussion in (arliament? 34> T)e se&on #ey raft la= is t)e "raq 0ational Oil !ompany 2a=: =)i&) =oul re-establis) t)e "raq 0ational Oil !ompany 6 issolve in 1<<37: t)ereby &reatin- on&e a-ain a sin-le entity to mana-e t)e &ountry5s oil business? 34> T)ese t=o la=s are inter epen ent? T)e )y ro&arbons la= =oul &reate a $e eral !oun&il for Oil an .as 6$!O.7: =)i&) =oul set t)e poli&y &arrie out by "0O!? 341 "n t)eir analysis: Revenue 4at&) "nstitute state t)at espite t)e me ia5s fo&us on t)e role of t)e private se&tor: t)e most &ontentious issue in "raq5s le-al frame=or# is t)e ivision of aut)ority bet=een t)e fe eral &entre an t)e re-ions? 342

6ydrocarbons la$
T)e "raq $e eral Oil an .as 2a= )as been referre to by 1eit) /yers or Revenue 4at&) "nstitute as Ione of t)e most ea-erly a=aite an &ontentious pie&es of le-islation in t)e oil in ustry =orl =i e?I343 T)e stalle la= s)oul set out terms re-ulatin)o= forei-n oil firms =ill be able to operate in "raq: resolve bitter isputes bet=een t)e &entral -overnment an "raqi 1ur istan: an remove a #ey obsta&le to t)e evelopment of t)e &ountry5s )y ro&arbon reserves?344 T)e ifferin- rafts =)i&) )ave been is&usse sin&e 2>>3 are base on ifferin- interpretations of t)e =or in- of t)e 2>>5 !onstitution: mu&) of =)i&) la&#s &larity? 343 "n t)e summer of 2>11 t)e !abinet an (arliament ea&) pro u&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 6supporte by t)e 1R.7: istributes more aut)ority to t)e re-ions? T)e (arliament Oil !ommittee approve its o=n raft in Au-ust 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=5s pro-ress? 2ater in O&tober 2>11: /ali#i an t)en-1R. (rime /inister Bar)am ,ali) a-ree to restart ne-otiations ta#in- an earlier raft la= from $ebruary 2>>3 as a base: )o=33< 5"raq %ner-y Outloo#5: Internationa )nergy Agency: < O&tober 2>12? 34> 5"raq oil la= eal festers as &risis ra-s on5: !euters: 26 Banuary 2>12? 341 5(ro-ress on t=o #ey oil la=s5: Ira' 0il !e1ort: 1 Buly 2>11? 342 5"raq Cy ro&arbons 2e-al $rame=or#5: !evenue "atch Institute: retrieve 2< 0ovember 2>12? 343 5Brea#in- "raq5s oil-la= stalemate5: Petroleum )conomist: 1 *e&ember 2>11? 344 5"raq oil la= eal festers as &risis ra-s on5: !euters: 26 Banuary 2>12?

6<

ever t)ese tal#s never too# pla&e?345 All of t)e raft versions bein- &onsi ere =oul &reate a bo y &alle t)e $e eral Oil an .as !oun&il 6$O.!7: on =)i&) re-ions: -overnorates an fe eral -overnment are represente ?343 Co=ever ea&) version i&tates a ifferent stru&ture of po=ers an responsibilities? T)e !abinet raft envisa-es an $O.! t)at reports to t)e e'e&utive: =)ile many oil &ommittee /(s believe it s)oul be an in epen ent bo y responsible to t)e (arliament?345 T)e prospe&t of a ne-otiate resolution to t)e impasse imme urin- 2>11 follo=ina politi&al &risis spar#e by t)e sa&#in- an arrest of vi&e-presi ent Tariq alCas)emi:346 an eepene follo=in- isputes over &ontra&ts a=ar e by t)e 1R. to %''on/obil an ot)er oil majors: an furt)er isputes over &ru e e'ports? "n April 2>12: 1ur is) Oil /inister As)ti Ca=rami tol Ira' 0il !e1ort t)at t)e !onstitution alrea y -rants 1ur istan t)e ri-)t to evelop its resour&es =it) full autonomy: an su--este t)at a fe eral oil la= may not even be nee e in t)e 1R.: =)i&) passe its o=n re-ional la= in 2>>3?345

Iraq National Oil Company La$

T)e raft "raq 0ational Oil !ompany 2a= =oul re-establis) t)e "raq 0ational Oil !ompany 6"0O!7 as a state-o=ne &ompany mana-in- all of t)e state interests in &urrent an ne= fiel s an operatin- =it) a e-ree of finan&ial an a ministrative autonomy?343 As a result of t)e la=: t)e /inistry of Oil =oul be strippe of its operational respons ibility to be&ome more of a poli&y-ma#in- bo y? 34; "t =oul also be li#ely to a&quire some po=ers &urrently )el by t)e 1ur istan Re-ional .overnment 61R.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 in ustry? Co=ever Oil /inister 1arim al-2uaibi state in 2>12 t)at It)is la= a s not)in- to =)at t)e /inistry of Oil is oin- alrea y?I34< ,in&e bein- propose in 2>>3 t)is la= )as also un er-one substantial &)an-es 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 man ate a &ertain level of lo&al &ontent in ener-y se&tor proje&ts: t)at is le-islation =)i&) obli-es &ontra&tors to ma#e use of lo&al -oo s an servi&es?343 ,u&) &on&erns are instea a resse un er Arti&le 26
345 5(arliament rebuffs !abinet oil la=5: Ira' 0il !e1ort: 24 April 2>12? 346 5"raq vi&e-presi ent senten&e to eat) ami ea ly =ave of insur-ent atta&#s5: uardian: 1> ,eptember 2>12? 343 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? 34; 5"raq oil la= eal festers as &risis ra-s on5: Ira' 0il !e1ort: 24 Au-ust 2>11? 34< 5Oil e'perts ebate a ne= state oil &ompany5: Ira' 0il !e1ort: 16 Banuary 2>11? 35> 5(arliament releases offi&ial raft oil an "0O! la=s5: Ira' 0il !e1ort: 24 Au-ust 2>11?

3>

of "raq5s mo el 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 &ountry5s Trainin-: Te&)nolo-y an ,&)olars)ip $un 6TT,$7:351 alt)ou-) t)is eman =as re u&e to G1 million for &ontra&ts a=ar e in "raq5s t)ir li&ensin- roun ?352

Oil and Gas Licensing Rounds

Iraq4s First Licensin5 Round 1//'!
Oil /inister Cussein ,)a)ristani laun&)e "raq5s first li&ensin- roun in 2>>;? Bi s on more barrels of oil in a sin-le bi roun t)an at any ot)er time or pla&e in )istory =ere ma e open to international oil &ompanies 353: =)o )a not )a any si-nifi&ant a&tivity in oil operations in "raq sin&e nationalisation in 1<34? ,ome 22 &ompanies too# part in t)e li&ensin- roun ?354 "n t)e en only one fiel : Rumaila: =as a=ar e in t)e au&tion pro&ess itself: t)ou-) t=o ot)er fiel s: /aysan an 4est Furna ()ase 1: =ere subsequently a=ar e in bilateral ne-otiations?355

Process
By early 2>>; &ompanies =ere invite to pre-qualify for an au&tion pro&ess? /any e'perts in resour&e transparen&y re-ar au&tions as t)e best =ay to mana-e bot) t)e an-er of &orruption an asymmetry of information bet=een -overnments an &ompanies at t)e pro u&tion a=ar sta-e356? On t)e 1; $ebruary 2>>; t)e -overnment announ&e some 35 international &ompanies: in&lu in- many of t)e so-&alle 5majors5: )a passe t)e pre-qualifi&ation sta-e: out of a total of 14> &ompanies =)o applie ? T)ey =ere evaluate on five &riteriaA te&)ni&al: finan&ial: le-al: trainin-: an C,% 6Cealt): ,afety an %nvironment7?353 Bet=een $ebruary 2>>; an April 2>><: t)e /inistry of Oil un ertoo# a number of ot)er preparatory measures &ommon for au&tions: su&) as publis)in- pa&#a-es of -eolo-i&al an ot)er ata for &ompanies to revie=: runnin- a roa s)o= to present t)e au& tion opportunities in 2on on an a =or#s)op to e'plain t)e au&tion pro&ess 35;? T)e
351 5/o el (ro u&in- Oil $iel Te&)ni&al ,ervi&e !ontra&t 65($T,!575: 23 April 2>><? 352 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey: 23 *e&ember 2>1>? 353 5$irst Oil Bi Roun A T)e .reatest ,)o= On %art)5: "ikileaks: 22 Bune 2>><? 354 5T)e Results5: Ira' 0il 4orum: 5 $ebruary 2>><? 355 5Oil !ompanies /a#in- /oves "n "raq5: Investo1edia: 1; Banuary 2>1>? 356 5/ana-in- t)e !urse of 0atural Resour&es - a &)arter for politi&ians5: uardian: 5 $ebruary 2>>< 353 5"raq5s $irst 2i&ensin- Roun - qualifi&ation5: Ira' 0il 4orum: O&tober 2>>;? 35; 5"raq5s $irst (etroleum 2i&ensin- Roun 5: Petroleum Contracts and Licensing %ivision: retrieve 2

31

-overnment also publis)e mo el &ontra&ts for oil 35< an -as36> an invite &ompany &omments: =)i&) =ere t)en absorbe into a revision pro&ess in /ay 2>><? 361?

$valuation criteria
T)e -overnment announ&e t)ere =oul be t=o main &riteria on =)i&) all bi s =oul be ju -e A $irstly: t)e pro u&tion plateau offere by a &onsortium for any -iven fiel : =)ere t)e )i-)er t)e pro u&tion t)ey =ere -uaranteein- t)e better? T)e -overnment itself set a minimum pro u&tion level it =as prepare to a&&ept for ea&) fiel base on its reserves an )istori& pro u&tion: =)i&) varie bet=een 2?35 million barrels per ay 6bp 7 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 pro u&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 =i e is&repan&ies bet=een ma'imum remuneration fees set by t)e -overnment: an offers ma e 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 fiel s t)e -aps =ere even =i er? At /aysan: for e'ample: t)e &onsortium le by !0OO! a&&epte a fee of G2?3> in later bilateral ne-otiations: )avinori-inally propose a fee of G21?4>?363

Results
T)e only a=ar ma e 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 imme iate an bilateral ne-otiations &ontinue until a eal =as announ&e in 0ovember 2>><? 364 T)e ot)er oil fiel s offere =ere 1ir#u#: @ubair: /aysan: 4est Furna ()ase 1 an Bai Cassan? T)e -as fiel s of A##as an /ansuriya): =)i&) =ere in&lu e in t)e first li &ensin- roun : =ere ue to be offere a-ain in t)e t)ir roun : ue in ,eptember 2>1>? T)e fa&t t)at only one a=ar =as announ&e in Buly 2>>< out of so many bi s 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 lea ers sai t)ey =oul a&&elerate t)e se&on bi roun an loo# at
Au-ust 2>1>? 35< 5T)e /o el (ro u&in- Oil $iel Te&)ni&al ,ervi&e !ontra&t 6($T,!7A An Overvie=5: ())S: 6 Buly 2>><? 36> 51ey le-al issues in t)e t)ir li&ensin- roun in "raq5s -as fiel s5: Le5ology: 2 Au-ust 2>1>? 361 5"raq !ontra&t Revisions !lear Obsta&les To Oil %'pansion5: ())S: 4 /ay 2>><? 362 5"raqMs $irst (etroleum 2i&ensin- Roun Rumaila !ontra&t Area J Bi in- Results5: Petroleum Contracts and Licensing %irectorate: 3> Bune 2>><? 363 5"raq to *evelop /aysan Oil $iel s =it) !)inese $irms5: Investors in Ira': 3 O&tober 2>1>? 364 5B( in "ra5q: BP: retrieve < Banuary 2>12? 365 5"raq Oil Bi in- in ,)ambles5: "all Street Journal: 1 Buly 2>><?

32

=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>><?363 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 oilfiel s =ere up for bi in t)e se&on roun : =)i&) pro u&e eals for seven of t)ose fiel s? T)e fiel s re&eivin- su&&essful bi s =ere Calfaya: /ajnoon: Fayara: Ba ra: .arraf: 0ajma) an 4est Furna 2? T)e t)ree fiel s re&eivin- no bi s =ere %ast Ba-) a : t)e %astern $iel s an /i le $urat?363

Process
"n all: a total of 4> &ompanies pre-qualifie for t)e bi in- roun 33> after submittinata provin- t)ey met t)e "raqi Oil /inistry5s &riteria? 331 T)e se&on roun follo=e t)e same pro&e ures as t)e first roun =it) fe= eviations?

Results
T)ere =ere 13 bi in- &onsortia in total: an t)e seven =innin- &onsortia -aine a&&ess to fiel s =it) proven reserves of 32 billion barrels of oil: or over a quarter of "raq5s proven reserves? T)e pro u&tion proje&tions from t)e &ompanies =innin- bi s in t)e se&on roun )a t)e potential to a about 4?; million barrels of oil to its aily prou&tion total?332 T)e table belo= s)o=s t)e ma#e-up of t)e &onsortia: alon- =it) a-ree per-barrel re muneration fees an t)e a-ree level of plateau pro u&tion t)ey s)oul rea&)A 333

366 5"raq:s $irst Oil Bi Roun A Too Car A Bar-ain5H: "ikileaks: 1 Buly 2>><? 363 52n Roun of Bi in- On "raqMs Oil $iel s %n s As A ,u&&ess5: (usings on Ira': 14 *e&ember 2>><? 36; 5Ta#e T=oA "raq5s All-"mportant 2i&ensin- Roun 5: 0ffshore /echnology 3 *e&ember 2>><? 36< 5"raq5s ,e&on (etroleum 2i&ensin- Roun 5: "raq 0il (inistry: retrieve 2 Au-ust 2>1> 33> 5"raqMs ,e&on Oil Bi in- Roun Bolstere by %''on: %ni *eals5: Bloomberg: 1> *e&ember 2>><? 331 5Announ&ement5: Petroleum Contracts and Licensing %irectorate: retrieve ; *e&ember 2>11? 332 52n Roun of Bi in- On "raqMs Oil $iel s %n s As A ,u&&ess5: (usings on Ira': 14 *e&ember 2>><? 333 5,e&on 2i&ensin- Roun Bi in- Results5: Petroleum and Contracts Licensing %irectorate : 12 *e&ember 2>><?

33

Field

Co"pany #o"e country Co"pany type !0(! (etronas Total !)ina /alaysia $ran&e +1TT)e 0et)erlan s /alaysia An-ola An-ola Russia ,out) 1orea /alaysia Tur#ey /alaysia Bapan Russia 0or=ay ,tate ,tate (ubli& (ubli& ,tate ,tate ,tate ,tate ,tate ,tate ,tate ,tate (ubli& (ubli& ,tate

Share in field 5>V 25V 25V 6>V 4>V 1>>V 1>>V 4>V 3>V 2>V 2>V 6>V 4>V ;5V 15V

Service fee Production per barrel increase ($ (bpd 1?4> 1?4> 1?4> 1?3< 1?3< 5 6 5?5> 5?5> 5?5> 5?5> 1?4< 1?4< 1?15 1?15 535:>>> 535:>>> 535:>>> 1?; million 1?; million 12>:>>> 11>:>>> 13>:>>> 13>:>>> 13>:>>> 13>:>>> 23>:>>> 23>:>>> 1?; million 1?; million

Calfaya

/ajnoon

,)ell (etronas

Fayara 0ajma) Ba ra

,onan-ol ,onan-ol .aEprom 1o-as (etronas T(AO

.arraf

(etronas Bape'

4? Furna 2

2u#oil ,tatoil

Iraq4s 9hird Licensin5 Round 1/&/!

"raq )el its t)ir bi roun on 2> O&tober 2>1> 334 for t)ree -as fiel sA A##as: &ontainin- an estimate 15; billion &ubi& meters 6b&m7 of natural -asN /ansuriya): &ontaininappro'imately 13> b&mN an ,iba: &ontainin- about 31 b&m? 335 T)e A##as an /ansuriya) fiel s )a been in&lu e in t)e first roun of li&ensin-: but /ansuriya) re&eive no bi s an A##as re&eive only one bi t)at faile ? ,iba )a ori-inally been in&lu e in t)e se&on bi roun : but =as remove from t)e list before bi in- be-an? ,ubsequently: t)e -overnment )a in i&ate t)at all t)ree fiel s =oul be evelope by national efforts: but t)en e&i e to offer t)e fiel s for au&tion in t)e t)ir roun after all?334

334 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey: 23 *e&ember 2>1>? 335 5"raq in#s final eal ,1orea5s 1O.A,5: .ahoo@ *e&s: 13 O&tober 2>11?

34

Process
T)e &ontra&ts a=ar e in t)e t)ir li&ensin- roun eliminate si-nature bonuses: a si-nifi&ant eparture from t)e first t=o roun s? A itionally: t)e require annual &ommitment to t)e Trainin-: Te&)nolo-y an ,&)olars)ip $un : 334 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&)nolo-y: 336 =as re u&e from G5 million to G1 million?334 T)e &onversion fa&tor for &onvertin- natural -as volume eliveries into barrels of oil equivalent 6boe7 =as also re u&e from about 225 &ubi& meters to about 13>: allo=in&ompanies to re-ister lar-er volumes of -as pro u&tion? 333

Results
As a result of t)e t)ir roun : &ontra&ts =ere a=ar e to 1orea5s 1o-as: Tur#ey5s T(AO an 1u=ait %ner-y !ompany 61%!7? T)e table belo= s)o=s t)e ma#e-up of t)e &onsortia: alon- =it) a-ree per-barrel remuneration fees an t)e a-ree level of plateau pro u&tion t)ey s)oul rea&)A
Field Co"pany #o"e country ,? 1orea Tur#ey 1u=ait ,? 1orea 1u=ait Tur#ey Co"pany Share in Service fee Production intype field per barrel ($ crease ("$ feet%&day ,tate ,tate (ubli& ,tate (ubli& ,tate 1>>V 5>V 5>V 2>V 6>V 4>V 5?5> 3 3 3 3?5> 3?5> 4>> 32> 32> 32> 1>> 1>>

A##as /ansuriya)

1o-as T(AO 1%!

/ajnoon ,iba ,iba

1o-as 1%! T(AO

+nli#e t)e first t=o roun s: t)e t)ir roun =as ominate by re-ional &ompanies: =it) major international oil &ompanies absent? Of t)e "O!s favoure by t)e Oil /inistry: only Total submitte bi s? T)ey may )ave been repelle by tou-) payment terms an an un&ertain se&urity situation in "raq: a&&or in- to t)e !yprus-base /i le %ast %&onomi& ,urvey 6/%%,7? Anot)er su--este reason for t)e absen&e of some majors =as t)eir relative la&# of e'posure in "raq an t)eir relu&tan&e to overstret&) t)eir involvement un er &urrent &ir&umstan&es? 333 /%%, also su--este t)at t)e re-ional an -eo-rap)i&al pro'imity of t)e above firms: spe&ifi&ally T(AO an 1u=ait %ner-y: playe a role in t)eir =innin- of t)e &ontra&ts? 4it) its sta#e in t)e ,iba an /ansuriya) fiel s: T(AO stren-t)ene its foot)ol in t)e "raqi upstream se&tor sin&e it alrea y )a minority sta#es in Ba ra an in t)e /aysan
336 5/o el ,ervi&e *evelopment an (ro u&tion !ontra&t5: *orth 0il Com1any: 23 April 2>><? 333 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey 23 *e&ember 2>1>?

35

-roup of oilfiel s? 1u=ait %ner-y5s involvement in "raq: mean=)ile: &oul )elp revive t)e e'port of "raqi -as to 1u=ait? A&&or in- to /%%,: t)ere )a been tal# of rea&tivat in- a pipeline from Rumaila to 1u=ait t)at =as operational in t)e mi 1<;>s? 33;

Iraq4s Fourth Licensin5 Round 1/&1!

"raq5s fourt) li&ensin- roun too# pla&e on 3>-31 /ay 2>12: =it) t=elve areas on offer: &overin- a total of ;>:3>> square #ilometers?33< T)e bi in- roun in&lu e bot) une'plore areas3;> an ne=ly is&overe fiel s t)at )a not yet been e'ploite ? 3;1 ,even of t)e t=elve blo&#s in&lu e in t)e roun =ere -as prone: =)ile t)e rest )ave oil potential:3;2 &ontainin- a &ombine 2< billion &ubi& meters 6b&m7 of -as an 1> billion barrels of &ru e oil?3;3 "raq i not ne&essarily plan to be-in evelopment or pro u&tion from any oil fiel s is&overe : usin- t)em instea to maintain an boost reserves: a&&or in- to Abul-/a) y al-Amee i: )ea of t)e (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7? Reserve in&reases &oul offset e'pe&te epletion in ot)er fiel s an stren-t)en "raq5s &ase in &onvin&in- O(%! to set an e'port quota for t)e "raqi in ustry? !ompanies is&overin- -as: on t)e ot)er )an : =oul be allo=e to pro u&e it? 3;4 T)e t=elve sites offere lie in t)e provin&es of 0ineve): *iyala: 4asit: Basra: /ut)anna: Fa isiya an Babil:3;3 as =ell 0ajaf: 1arbala: ,ama=a: *i=aniya an Anbar: =)i&) =ere not in&lu e in t)e previous roun s? 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-,au i bor ers? 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 roun s? 3;6 T)e au&tion )a ori-inally been s&)e ule for 0ovember 2>11: but =as elaye repeate ly: first to Banuary 2>12 3;2 an t)en to 3-; /ar&) before finally ta#in- pla&e in /ay?3;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 si-n any more &ontra&ts until a ne=
33; 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey: 23 *e&ember 2>1>? 33< 5$ourt) 2i&ensin- Roun in "raq: results announ&e Bune 2>125: %eloitte: Bune 2>12? 3;> 5"raq 4t) bi in- roun offers ne= opportunities for "O!s5: )valuate )nergy 12 /ay 2>11? 3;1 5"raq sets ate for oil an -as li&ensin- roun 5: Al3Shorfa: 3 *e&ember 2>11? 3;2 5T)e $ort)&omin- %'ploration Blo&#s Bi Roun "n "raqA "ssues $or !onsi eration5: (iddle )ast )conomic Survey: 6 Bune 2>11? 3;3 5"raq Offers 12 0e= Oil Blo&#s in 4t) Roun 5: Ira' Business *e&s: 25 April 2>11? 3;4 5"raq re=or#s fees to bolster 4t) ener-y au&tion5: !euters: 13 ,eptember 2>11? 3;5 5"raqi Oil /inistry (repares 4t) 2i&ensin- Roun 5: Ira' Business *e&s: 21 /ar&) 2>11? 3;6 52aun&) of t)e 4t) 2i&ensin- Roun in "raq 2>115: %eloitte Petroleum Services: 21 /ar&) 2>11? 3;3 5"raq elays 4t) ener-y au&tion to /ar&) ne't year5: !euters: 1> O&tober 2>11?

36

)y ro&arbon la= )a been approve ?3;; But Oil /inister Ab ul 1areem al-2uaibi 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&&or in- to t)e (!2*? 3<> T)e fourt) bi roun in&lu e 43 international oil &ompanies 6"O!s7? 3<1 All &ompanies t)at qualifie for t)e previous t)ree roun s of li&ensin- automati&ally qualifie for t)e fourt): =)et)er or not a &ontra&t =as si-ne in previous roun s? 3<2 T)e +, oil firms Cess an %''on/obil =ere e'&lu e from parti&ipatin- in t)e fourt) li&ensin- roun be&ause of &ontra&ts t)ey si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7: 3<3 =)i&) t)e &entral -overnment in Ba-) a &onsi ers ille-al?3<4

Chan5es to model contract and criteria

T)e &ontra&t mo els use for t)e fourt) au&tion roun feature several &)an-es &ompare to earlier roun s?3<5 T)e remuneration fee: or t)e amount t)e -overnment pays to t)e &ompanies for ea&) barrel of oil pro u&e :3<6 =as &al&ulate ifferently un er t)e ne= &ontra&ts? +n er t)e ne= formula &ompanies =ere not pai for oil t)ey pay sub&ontra&tors to pro u&e? "nstea t)e "raqi -overnment e u&ts t)e &ost of sub&ontra&ts from total pro u&tion an t)en pays remuneration on t)e remainin- pro u&tion? "n ot)er =or s: if total pro u&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- pro u&tion: or 3>>:>>> barrels? T)is ne= formula =as aime at &uttin- t)e &ost of sub&ontra&ts 3<5 an effe&tively ties &ompanies5 &ompensation to t)eir &ost-effi&ien&y?3<3 Anot)er &)an-e from previous roun s =as t)e &riteria on =)i&) bi s =ere ju -e ? (revious roun s too# into a&&ount not only t)e remuneration fee ea&) bi er =oul &)ar-e: but also t)e amount of oil t)ey a-ree to pro u&e? "n t)e fourt) roun : =it) many of t)e bi in- areas yet to be e'plore an =it) a&tual pro u&tion t)erefore less &ertain: t)e remuneration fee =as t)e only &riterion? +n er t)e ne= eals: &ontra&tors also fa&e restri&tions on t)eir ability to pump oil an -as in or er to avoi over-supplyin- t)e mar#et an over=)elmin- "raq5s un er evelope infrastru&ture? 3<3

Results
T)e fourt) bi in- roun =as seen by many in t)e in ustry as a failure: )avin- faile
3;; 5T)e $ort)&omin- %'ploration Blo&#s Bi Roun "n "raqA "ssues $or !onsi eration5: (iddle )ast )conomic Survey 6 Bune 2>11? 3;< 5"raq /(s to As# (arliament to *elay 0e= %ner-y Roun : ,aa ,ays5: Bloomberg 13 /ay 2>11? 3<> 5"raq elays 4t) ener-y au&tion to /ar&) ne't year5: !euters: 1> O&tober 2>11? 3<1 5$ourt) 2i&ensin- Roun in "raq: results announ&e Bune 2>125: %eloitte: Bune 2>12? 3<2 5"raq 4t) bi in- roun offers ne= opportunities for "O!s5: )valuate )nergy 12 /ay 2>11? 3<3 5"raqMs $ourt) Oil an .as 2i&ensin- Roun 5: (ayer Bro&n: 1< ,eptember 2>12? 3<4 5%''on /obile T)reatens "ts Oil "nterests "n ,out)ern "raq 4it) 1ur is) *eal5: A+ *e&s: 24 0ovember 2>11? 3<5 5"raq re=or#s fees to bolster 4t) ener-y au&tion5: !euters: 13 ,eptember 2>11? 3<6 5!)ina initials Calfaya &ontra&t5: /-% Asset and /rust: 3 Banuary 2>1>? 3<3 5/inistry unveils tou-) terms for 4t) bi roun 5: Ira' 0il !e1ort: 14 ,eptember 2>11?

33

to attra&t t)e e'pe&te interest? $ollo=in- t)e bi in- roun t)e "raqi -overnment be-an to spea# of ma#in- &)an-es to its &ontra&ts? *eputy (rime /inister for %ner-y ,)a)ristani sai in late 2>12 t)at t)e plateau pro u&tion tar-et =oul be Isli-)tly a juste I an t)e perio for rea&)in- t)e plateau =as li#ely to be e'ten e : -ivin- investors lon-er 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 bi s: alon- =it) a-ree per-barrel remuneration feesA 3<<4>>

'loc(

Acrea)e Co"pany (s* (" 33>> ;>>> 3>>> 3>>> ;>>> <>>> 6>>> 6>>> <>> no bi s no bi s no bi s no bi s no bi s no bi s no bi s (a#istan (etroleum 1%! T(AO *ra-on Oil

#o"e country

Co"pany type nTa nTa nTa nTa nTa nTa nTa ,tate (rivate (ubli& (ubli& (ubli& (ubli& nTa ,tate (ubli& (ubli&

Share in bloc( nTa nTa nTa nTa nTa nTa nTa 1>>V 4>V 3>V 3>V 6>V 4>V nTa 3>V 4>V 3>V

Service fee per barrel ($ nTa nTa nTa nTa nTa nTa nTa 5?3; 6?24 6?24 6?24 5?<< 5?<< nTa <?;5 <?;5 <?;5

Blo&# 1 Blo&# 2 Blo&# 3 Blo&# 4 Blo&# 5 Blo&# 6 Blo&# 3 Blo&# ; Blo&# <

nTa nTa nTa nTa nTa nTa nTa (a#istan 1u=ait Tur#ey +A% Russia Bapan nTa Dietnam +1 Russia

Blo&# 1>

55>>

2u#oil "npe'

Blo&# 11 Blo&# 12

;>>> ;>>>

no bi s (etro Dietnam (remier Oil Bas)neft

3<; 54ill "raq be t)e ne't oil superpo=erH5? Petroleum )conomist: 12 *e&ember 2>12? 3<< 5Results of $ourt) 2i&ensin- Roun 5: Ira'i Petroleum Contracts and Licensing %irectorate: retrieve 5 *e&ember 2>12? 4>> 5$ourt) 2i&ensin- Roun in "raq: results announ&e Bune 2>125: %eloitte: Bune 2>12?

3;

Regional !ynamics
Iran.Iraq
%napshot
"ran an "raq )ave a lon- an &ompli&ate )istory in =)i&) fa&tors of e&onomi&: reli-ious an military nature are often intert=ine ? 4>1 T)e t=o &ountries fou-)t t)e lon-est &onventional =ar of t)e 2>t) &entury bet=een 1<;> an 1<;; =)en ,a am Cussein inva e "ran after t)e "ranian "slami& Revolution?4>2 "raq an "ran evelope e'tensive e&onomi& ties follo=in- t)e fall of ,a am Cussein in 2>>3: =it) tra e bet=een t)e t=o states in&reasin- tenfol bet=een 2>>3 an 2>1>: a&&or in- to "ranian offi&ials? 4>3 A&&or in- to t)e +nite ,tates "nstitute of (ea&e: Te)ran )as =iel e substantial politi&al influen&e in "raq sin&e 2>>3 an en)an&e its 5soft5 po=er in t)e e&onomi&: reli-ious an informational omains? T)ey also &laim t)at "ran provi e support to ,)ia insur-ent -roups an militias =it)in "raqi borers?4>4 After visitin- "ran in O&tober 2>1> an meetin- =it) presi ent /a)mou A)me ineja an Ayatolla) Ali 1)amenei: "raqi (rime /inister 0ouri al-/ali#i es&ribe t)e t=o &ountriesM relations)ip as Istrate-i&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 re-ion?I4>5

Iranian political influence in Iraq

+(" reports spea# of "ran5s I&easeless effortsI to ominate its =estern nei-)bour politi&ally an e&onomi&ally sin&e 2>>3? A&&or in- to t)e reports: prior to +, =it) ra=al from "raq: "ran )a been =a-in- a &lan estine =ar a-ainst +, interests in "raq an poure billions of ollars into buil in- up a vast patrona-e an intelli-en&e net=or# in t)e &ountry: -ivin- t)em si-nifi&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- "raq5s t)ree major ,)i5ite politi&al fa&tions: t)e "slami& ,upreme !oun&il of "raq 6",!"7: t)e *a=a 6"slami& !all7 party an t)e ,a rists: "ran )ope to translate a ,)i5ite emo-rap)i& majority into politi&al influen&e?4>4

4>1 5"ran-"raq relations revisite A ener-y &ooperation5: /he ulf !esearch Unit: 21 $ebruary 2>11? 4>2 5"ran an "raqA a )istory of tension an &onfli&t5: uardian: 2; Buly 2>11? 4>3 5"raq-"ran $orei-n Relations5: A)I Iran /racker: 5 Au-ust 2>11? 4>4 5"ran an "raq5: United States Institute of Peace: retrieve 13 *e&ember 2>11? 4>5 5"raqi (/ &ourts "ran urin- visit5: Al Ja#eera: 1< O&tober 2>1>? 4>6 5O(%!A "ran-"raq allian&e =ea#ens ,au is5: UPI: 4 Banuary 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 235 seats in t)e *e&ember 2>>5 "raqi parliamentary ele&tions: =it) senior *a=a lea er 0ouri al-/ali#i sele&te as (rime /inister? T)e provin&ial ele&tions in Banuary 2>><: )o=ever: =ere seen by +, state or-ans to emonstrate t)e "raqi publi&5s reje&tion of "ran5s politi&al influen&e? /ali#i5s national ist ,tate of 2a= party ma e some -ains: but t)e ot)er t=o ,)ia politi&al fa&tions: t)e ",!" an t)e ,a rists: suffere setba&#s? 4>3 .eor-e $rie mann 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 =i e re-ional &onsequen&es?I4>;

Cross.border fields and ener5y cooperation

Oil fiel s in bor er re-ions )ave lon- been a point of vital interest for bot) "raq an "ran?4>< After e&a es of &ontentious relations =)ile ,a am Cussein =as in po=er: &ulminatin- in t)e "ran-"raq =ar from 1<;>-1<;;: ,a am5s fall in 2>>3 provi e 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 fiel s in bor er re-ions: 411 in&lu in- t)e Ba ra fiel an t)e /ajnoon fiel : =)i&) -eolo-ists &onsi er to belon- to t)e same stru&ture as "ran5s AEa e-an?412 T)e unitisation of t)ese frontier fiel s: or a-reement bet=een entities on )o= to ivi e -eolo-i&al stru&tures ivi e by a bor er: )as t)e potential to &reate bilateral ten sion: a&&or in- to +, iplomati& &ables? /eetin-s bet=een "raqi an "ranian offi&ials in 2>>< )elpe ne-otiations on t)is issue -ain some momentum: an as of /ar&) of t)at year t)e "raqi /inistry of Oil =as attemptin- to evelop a mo el unitisation a-ree ment to e'ploit t)e &ross-bor er fiel s? 412 "n /ay 2>1>: "raq an "ran a-ree on a /aster *evelopment (lan 6/*(7 for t)e evelopment of five s)are : unname oilfiel s in t)e bor er re-ion? "ran an "raq )ave ifferent le-al an &ontra&tual systems to evelop t)eir oil an -as fiel s: but t)e /*( &oul be a step to=ar brin-in- s)are fiel evelopment onto t)e a-en a: a&&or in- 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 si es si-ne a provisional a-reement t)at =oul allo= "raq to import 25 million &ubi& meters 6m&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 Buly 2>11 "raq: "ran an ,yria si-ne a G1> billion eal in =)i&) t)e t)ree states a-ree to &onstru&t a natural -as pipeline from sout)ern "ran t)rou-) "raq an e'ten in- to ,yriaN "ranian offi&ials )ave in i&ate
4>3 5"ran-"raq Relations5: US Congressional !esearch Service: 13 Au-ust 2>11? 4>; 5O(%!A "ran-"raq allian&e =ea#ens ,au is5: UPI: 4 Banuary 2>13? 4>< 5"ran-"raq relations revisite A ener-y &ooperatio5n: /he ulf !esearch Unit: 21 $ebruary 2>11? 41> 5"raq-"ran $orei-n Relation5s: A)I Iran /racker: 5 Au-ust 2>11? 411 5"ran: "raq Rea&) *eal on Boint Oilfiel s5: Ira' Business *e&s: 1> Banuary 2>11? 412 5"raqi Oil /inistry 0e-otiatin- +nitiEation Of !ross-bor er $iel s5: "ikileaks: 1 /ar&) 2>><? 413 5"ran: "raq to *evelop 5 Oilfiel 5s: Iran %aily: 5 /ay 2>1>? 414 5"raq see#s "ranian -as for po=er -eneration5: Bloomberg Business&eek : 23 /ay 2>11?

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t)at t)e pipeline =oul eventually e'ten to t)e /e iterranean ,ea t)rou-) 2ebanon? +n er 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 Or-aniEation of (etroleum %'portin- !ountries 6O(%!7 =)i&) supplies about 4> per&ent of t)e =orl Ms oil? 416 %stimates of proven reserves are a sensitive issue amon- O(%! member states: as reserves are a main &onsi eration be)in t)e pro u&tion quota ea&) member is entitle to? 413 "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 eman e an output quota equal to "ran5s? 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 si-ne lan mar# a-reements =it) international oil firms in 2>>< to ramati&ally raise its oil output: "raq an "ran be-an a series of 5reserve =ars5 in =)i&) ea&) si e su&&essively revise up its proven oil reserve estimates? "n late 2>1>: "raq raise its proven &ru e oil reserve estimates to 143?1 billion barrels: a rise of 25 per&ent? 4ee#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?413 "f "raq su&&ee s in its planne oil pro u&tion in&rease from 2?3 million barrels per ay 6bp 7 in *e&ember 2>1141< to to 12 million bp by 2>13? 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 states5 quotas: t)ereby re u&in- t)eir -lobal mar#et s)are: in or er to a&&ommo ate "raq5s ne= &apa&ity an temper t)e rop in oil pri&es? "n t)is &ase: "ran &oul be t)e )ar est )it: a&&or in- to in ustry analyst ,amuel !isEu#? Ce notes t)at "ran barely mana-e 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&&or in- to t)e International Business /imes: "ran an "raq5s 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 a-en&y t)at bot) "raqi an "ranian &laims of )i-)er reserves =ere IunreliableI an unsubstantiate by proper evi en&e?421 *espite t)is =arrin- perio : +(" reporte in early 2>13 an emer-in- allian&e bet=een t)e t=o &ountries =it)in O(%!: )i-)li-)tin- t)at an "ran-"raq a-reement: &reatin- a strate-i& Eone t)at pro u&es at least one t)ir of t)e =orl 5s oil supplies: &oul )ave immense -eopoliti&al impli&ations?422
415 5"ran in#s -as pipeline eal =it) "raq an ,yri5a: A4P: 25 Buly 2>11? 416 5"ran: "raq Rea&) *eal on Boint Oilfiel s5: Ira' Business *e&s: 1> Banuary 2>11? 413 54RA(A "ran5s oil reserves revise up to 15>?31 billion barrels5: Platts: 11 O&tober 2>1>? 41; 5"ran in&reases oil reserves estimate: passes "ra5q: %aily Star: 12 O&tober 2>1>? 41< 5Bloomber- Die=A 4)y "raq5s Oil $lo=s ,lo=lyN ,pea#in- /ore !learly at t)e $e 5: Bloomberg: 15 *e&ember 2>11? 42> 5"raqi Oil /inistry (repares 4t) 2i&ensin- Roun 5: Ira'3Business *e&s 21 /ar&) 2>11? 421 5/i le %astMs ne= oil =arA "ran: "raq -loat over reserve siE5e: International Business /imes : 14 O&tober 2>1>? 422 5O(%!A "ran-"raq allian&e =ea#ens ,au is5: UPI: 4 Banuary 2>13?

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%audi Arabia.Iraq
%napshot
A *e& .ork /imes arti&le in 2>>3 state t)at a eep rift )a emer-e bet=een ,unni-majority ,au i an its pre ominantly ,)i5ite nei-)bour "raq sin&e t)e fall of t)e Ba5at)ist re-ime in 2>>3?423 "n fa&t: relations bet=een t)e t=o &ountries )ave os&illate bet=een s)are strate-i& interest - ,au i Arabia supporte "raq urin- its 1<;>-;; =ar =it) "ran - to military &onfrontation - ,au i Arabia )oste t)e +,-le response to ,a am Cussein5s invasion of 1u=ait in 1<<> an &ontribute its o=n troops to t)e =ar effort? "n early 2>12 ,au i Arabia name its first Ambassa or to "raq in more t)an t=o e&a es: restorin- normal iplomati& relations bet=een t)e t=o for t)e first time sin&e t)e invasion of 1u=ait? A&&or in- to *e& .ork /imes t)is &oul si-nal ,au i Arabia5s esire for a stron-er presen&e in "raq in or er to buttress a-ains 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: lea in- to a ,)i5ite-le -overnment =)i&) &ultivate &loser relations =it) "ran an "ranian-supporte politi&al movements insi e "raq? 424 "n response to in&reasin- ,au i interferen&e in internal "raqi politi&s: a lea#e +, ip lomati& &able from 2>>< reveale t)at "raqi (rime /inister 0uri 1amal al-/ali#i =as so &on&erne about t)e me lin- t)at )e as#e +, (resi ent Bara&# Obama to stop t)e ,au is from intervenin-? Ce &omplaine t)at ,au i5s effort to rally t)e ,unnis =ere )ei-)tenin- se&tarian tensions in t)e &ountry?425 $ears t)at "raq &oul re-ain its oil pro u&tion quota =it)in t)e Or-anisation of (etroleum %'portin- !ountries 6O(%!7 )a also le to &ompli&ate re-ional ynami&s: sin&e furt)er -ro=t) of t)e "raqi 6an "ranian7 e&onomies &oul =ea#en ,au i influen&e on re-ional -eopoliti&s?426

OP+C rivalry
Over 2>12 press reporte risin- tensions =it)in O(%! bet=een t)e ,au is an t)e "raqis: a result of isa-reements over )o= mu&) oil to pump an =)at level to tar-et for -lobal oil pri&es? !ompetin- ambitions arise be&ause =)ile t)e ,au is =oul prefer )i-) oil pri&es to fun +, G6>> billion in planne so&ial pro-rams: t)e "raqis are more fo&use on boostin- pro u&tion? %ner-y mar#ets strate-ist Bulius 4al#er notes t)at Iultimately t)ere =ill nee to be an a-reement bet=een t)e t=o as to )o= to balan&e t)ese ambitions?I423
423 5,au isM Role in "raq $rustrates +?,? Offi&ials5: *e& .ork /imes: 23 Bune 2>>3? 424 5,au is (i&# $irst %nvoy to Ba-) a in 2> 9ears5: *e& .ork /imes: 21 $ebruary 2>12? 425 5/e lin- 0ei-)bors +n er&ut "raq ,tability5: *e& .ork /imes: 5 *e&ember 2>1>? 426 5+, =it) ra=al from "raqA T)e #in- om betraye 5: /he Sunday /imes: 31 Buly 2>11? 423 5"raq5s Oil ,ur-e !oul T)reaten t)e ,au is5: Bloomberg: 2> *e&ember 2>12?

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T)e risin- profile of "raq is testin- ,au i Arabia5s usual role as Is=in- pro u&erI: t)e &ountry =it)in t)e -roup =it) enou-) spare &apa&ity to tap in times of s)orta-e an ri&) enou-) to =it))ol =)en t)e mar#et is floo e ? 423 An emer-in- allian&e bet=een former foes "ran an "raq in O(%! &oul also un ermine ,au i Arabia: )istori&ally t)e oil &artel5s ominant for&e?42; Ba-) a -base oil e'pert Ruba Cusari )a state t)at "raq5s rise as an oil pro u&er =oul ta#e Ian important balan&in- a&t =it)in O(%! to preserve t)e &o)esion =it)in t)e or-anisation =)ile at t)e same time satisfy "raq5s )u-e nee s =)i&) are bi--er t)an any ot)er member5sI: a in- t)at I"raq5s potential return as a major oil pro u&er un oubte ly &reates a &)allen-e for ,au i Arabia more t)an any ot)er member in O(%!?I42<

+#port infrastructure
T)e "raq (ipeline t)rou-) ,au i Arabia 6"(,A7 =as &onstru&te in t)e 1<;>s to transport "raqi oil to t)e ,au i Re ,ea port of /u5ajiE? 43> "t &ease to be use urin- t)e "raqi invasion of 1u=ait in 1<<> an =as e'propriate by ,au is in Bune 2>>1 as &om pensation 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 Bune 2>12 t)e "(,A pipeline =as reopene by ,au i Arabia in a move to offset "ranian t)reats to &lose t)e ,traits of CormuE? T)is route =oul allo= t)e ,au is to bypass .ulf s)ippin- lanes an transport its &ru e from Re ,ea terminals in &ase of su&) a move?431 T)e follo=in- mont) "raqi offi&ials &alle on ,au i Arabia to reverse a e&ision bannin- "raq from e'portin- &ru e 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&&or in- to international la=?432

8u$ait.Iraq
%napshot
As of mi -2>11: "raqi-1u=aiti relations remaine politi&ally &)ar-e an &ontentious: =it) isputes lin-erin- over several &ontentious issues: in&lu in-A t)e evelopment oil an -as fiel s near or &rossin- t)e bor erN a-reement on a lan an sea boun ary: =)i&) )as been un&lear sin&e "raq5s 1<<> invasion of 1u=aitN an a-reement to a pri&e
42; 5O(%!A "ran-"raq allian&e =ea#ens ,au is5:UPI: 4 Banuary 2>13? 42< 5"raq to rival ,au i Arabia in O(%! oil sta#esA Analysts5: /he %aily Star Lebanon: 24 *e&ember 2>><? 43> 5(ipelines bypassin- CormuE open5: 4inancial /imes: 15 Buly 2>12? 431 5,au i Arabia reopens oil pipeline =it) "raq to &ounter "ran CormuE t)rea5:t Al Arabiya *e&s: 2< Bune 2>12? 432 5"raq says ,au i Arabia s)oul allo= oil e'ports t)rou-) east-=est pipeline5: Platts: 1< Buly 2>12?

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ta- for reparations for ,a

am Cussein-era -rievan&es?433

Relations bet=een Ba-) a an 1u=ait )ave ma e substantial pro-ress in some areas? 1u=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 1u=ait in 2>1>? 0evert)eless: t)e outstan in- problems &ontinue to lea to perio i& tensions in t)e bilateral relations)ip?434

Cross.border fields and territorial disputes

ross(border fields
One of t)e imme iate state reasons for "raq5s invasion of 1u=ait in Au-ust 1<<> =as ,a am Cussein5s alle-ation t)at 1u=ait =as rillin- )oriEontally a&ross t)e a-ree international bor ers of t)e Rumaila oil fiel : effe&tively stealin- "raqMs oil? 435 As of late 2>12 t)ere remaine potential for isa-reement over a&&ess to fiel s in borer Eones? T)e "raqi -overnment announ&e in *e&ember 2>11 t)at t)ere =ere 1> oil fiel s in frontier re-ions t)at still nee e an international boun ary ra=n bet=een t)em: an t)at oil =oul be e'tra&te from t)ese fiel s only after fin in- joint me&)anisms bet=een t)e &ountries?434 T)ere )as never been unitisation of t)ese fiel s: meanin- t)at t)e "raq an 1u=ait )ave never a-ree to an equitable ivision of t)e fiel s5 oil base on a te&)ni&al assessment of )o= mu&) of t)e reservoirs lie un er ea&) &ountry?436 A )i-) rate of pro u&tion on one si e of t)e bor er essentially su&#s t)e oil from t)e ot)er si e an ama-es t)e reservoir: 433 an unitisation of t)ese fiel s =oul preserve t)e life of t)e reservoirs an allo= bot) si es to re&over more of t)e resour&es: a&&or in- to +, offi&ials in a lea#e iplomati& &able from 2>><? 436 T)e "raqi Oil /inistry forme a Bor er !ommittee in 2>>3 to e'amine all fiel s an stru&tures a ja&ent to an &rossin- "raq5s bor ers: in&lu in- t)ose =it) 1u=ait: 43; but t)e la&# of a-reement on t)is issue remains a sore point: a&&or in- to t)e &ables? 436

)erritorial disputes
Amon- t)e fun amental bor er issues bet=een "raq an 1u=ait is t)e latter5s esire for t)e "raqi -overnment to formally re&o-nise t)e international bor er 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 si es? A&&ess to "raq5s only si-nifi&ant &ommer&ial port: at BasraMs +mm Fasr: is via t)e narro= nort)ern (ersian .ulf an t)rou-) t)e 1)or Ab ulla) =ater=ay: =)i&) "raq s)ares =it) 1u=ait? Over t)ree quarters of "raq5s oil e'ports flo=e t)rou-) pipelines in t)is area as of
433 5+nresolve isputes mar "raq-1u=ait relations5: Ira' 0il !e1ort: 14 Buly 2>11? 434 5Oil fiel s on "raqi-1u=aiti bor er a=ait emar&ation5: A+ *e&s: 4 *e&ember 2>11? 435 5T)e "nvasion of 1u=ait5: /he 4iner /imes: retrieve 1; *e&ember 2>11? 436 5"raq-#u=aitA !ross-bor er "ssues Affe&tin- "raq5s %&onomy5: "ikileaks: 2 Buly 2>><? 433 51u=ait si-ns oil pa&t =it) "raq5: /he *ational: 22 *e&ember 2>1>? 43; 5"raqi Oil /inistry 0e-otiatin- +nitiEation Of !ross-bor er $iel s5: "ikileaks: 1 /ar&) 2>><? 43< 5(ort rivalry tests "raq-1u=ait relation5s: 4inancial /imes: 14 ,eptember 2>11?

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mi -2>><: an "raq5s efforts to stren-t)en its e&onomi& lifeline )ave been )ampere by t)e la&# of a-reement =it) 1u=ait on a maritime boun ary?44> Tensions =ere raise =)en 1u=ait be-an buil in- its G1?1 billion /ubara# al-1abir port on Bubiyan "slan : just a fe= #ilometres from "raqMs planne G4?6 billion .ran al$a= terminal? T)e /ubara# port =ill ire&tly &ompete an limit t)e traffi& flo= to al$a=: an &on-estion &oul affe&t oil tan#ers sailin- to "raq5s nearby Basra an 1)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 lar-er &ar-o s)ips t)at alrea y stru--le to o&# in +mm Fasr: t)e &ountryMs only eep-=ater port?442 T)ou-) t)e /ubara# port offi&ially lies =it)in 1u=aiti bor ers: its lo&ation )as an-ere "raqi politi&ians: =or#ers an tribal lea ers: =it) Transportation /inister Ca i al-Ameri sayin- in mi -2>11 t)at t)e /ubara# (ort I emonstrates t)e &lear intention of 1u=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&# tar-ets insi e 1u=ait? "n Au-ust 2>11 t)e "raqi ,)ia militia 1ata5ib CeEbolla) fire ro&#ets into 1u=ait: an =arne furt)er atta&#s =oul follo= if =or# on t)e port &ontinue ? T)e lea er of "raq5s .)atarna tribe: mean=)ile: =arne t)at if t)e 1u=aiti proje&t =ent a)ea : Lt)e &lans =ill ta#e t)e la= into t)eir o=n )an sK? 442

Reparations for &''/ invasion

1u=ait &laims over G2> billion in reparations o=e from "raq5s 1<<> invasion? "raq )as a-ree to &ontinue settin- asi e 5 per&ent of its oil sales for t)is purpose: but )as ar-ue t)at t)e G2> billion fi-ure is e'&essive? 441 T)e +nite 0ations5 !)apter D"" san&tions on "raq: =)i&) )a supervise an enfor&e t)e &ompensation fun : e'pire on 3> Bune 2>11443 an t)e t=o si es faile to subsequently establis) a ne= me&)anism for t)e payments? A&&or in- to Ira' 0il !e1ort: =it)out an a-reement 1u=ait &oul ta#e a vanta-e of t)e absen&e of le-al prote&tion for "raq5s fun s: =)i&) =ere remove =)en san&tions en e : an try to seiEe t)e fun s in &ourt? 441 Remainin- issues to be resolve before "raq &an be &onsi ere for full relief from !)apter D"" san&tions: as of *e&ember 2>11: in&lu eA t)e restitution of stolen property from 1u=ait5s national ar&)ives:444 t)e i entifi&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&# 1u=ait in t)e future?444 1u=aiti Airlines =as also o=e +, G1?2 billion by "raqi Airlines for planes an parts a

44> 5"raq-#u=aitA !ross-bor er "ssues Affe&tin- "raq5s %&onomy5: "ikileaks: 2 Buly 2>><? 441 5+nresolve isputes mar "raq-1u=ait relations5: Ira' 0il !e1ort: 14 Buly 2>11? 442 5"raqis $ear "mpa&t of 0e= 1u=ait (ort5: Institute for "ar 8 Peace !e1orting: < 0ovember 2>11? 443 5$ull *etails of +0 ,tatement on "ra5q: Ira' Business *e&s: 15 *e&ember 2>1>? 444 5$ran&e attentive to pen in- 1u=aiti eman s: ur-es "raqi pro-ress5: %inar uru: 16 *e&ember 2>11? 445 51u=ait si-ns oil pa&t =it) "raq5: /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 broa er ispute? Co=ever in O&tober 2>12 t)e t=o &ountries rea&)e an a-reement un er =)i&) "raq =oul pay 1u=ait G3>> million in &as) an invest G2>> million in a joint airline venture in return for 1u=ait liftin- le-al a&tions a-ainst "raqi Air=ays? 443

9ur=ey.Iraq
%napshot
Ameri&a5s 0(R reporte in 2>1> t)at Tur#ey is vyin- =it) "ran to be t)e most influential re-ional po=er in "raq an t)at 0ort)ern "raq )as be&ome t)e 5sta-in- -roun 5 for Tur#ey5s bi for e&onomi& ominan&e? Re-ional spe&ialist .re- .ause =ent so far as to say t)at It)e Tur#s )ave pre ominant influen&e of any forei-n po=er: even rivalint)e +,: an t)ey )ave one it t)rou-) a &lever an lo=-#ey strate-y:I? T)is is sai to be in line =it) Tur#ey5s aspirations to be&ome an ener-y bri -e bet=een %urope an Asia?44; Tur#ey5s Tra e /inistry estimates t)at t)e tra e volume bet=een Tur#ey an "raq e' &ee e +, G6 billion in 2>1>: up from only G<4> million in 2>>3: boostin- "raq from Tur#ey5s tent) lar-est tra e partner to t)e fift) lar-est? As of 2>11 t)ere =ere over 113 Tur#is) &ompanies =or#in- on ener-y: a-ri&ulture an in ustrial proje&ts in "raq? %ner-y is a #ey feature of bilateral relations bet=een t)e t=o &ountries? "n t)e t)ir roun of li&ensin- in 2>1>: Tur#ey5s state-o=ne T(AO =as amon- t)e &ompanies to si-n eals for -as fiel s in t)e sout): an Tur#is) &ompanies are also a&tive in t)e 1ur is) 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 (resi ent Tariq al-Cas)emi an Tur#ey5s subsequent refusal to )an )im over to "raqi aut)orities =)en )e too# refu-e in t)e &ountry? 45> An analyst at t)e !arne-ie %n o=ment &ommente t)at ITur#ey in&reasin-ly is seen as nurturin- t)e ,unnisI: an t)e sourin- relations le to t)e mayor of Basra en&oura-in- &ompanies from ot)er &ountries to &ompete a-ainst Tur#is) &ompanies for &ontra&ts?451

6istorical relations
$ollo=in- 4orl 4ar "" Tur#ey =as a #ey ally of t)e 4est in t)e /i le %ast in or er to &ontain t)ose &ountries seen as 5,oviet &lients5: in&lu in- "raq? But urin- t)e 1<<>s "raq =as Tur#ey5s lea tra in- partner: =it) t)e Tur#is) port of !ey)an re&eivin- oil
446 5+nresolve isputes mar "raq-1u=ait relation5s: Ira' 0il !e1ort: 14 Buly 2>11? 443 51u=ait &lears .ulf 4ar "raqi airline settlement5: !euters: 23 O&tober 2>12? 44; 5Tur#ey $le'es %&onomi&: (oliti&al /us&le "n "raq5: *P!: 31 *e&ember 2>1>? 44< Turun&: Casan: 5Tur#ey an "raq5: 2>11? 45> 5Tariq al-Cas)emiA Tur#ey 5=ill not )an over5 "raq D(5: BBC: 11 ,eptember 2>12? 451 5A 0e=ly Assertive Tur#ey *ominates Tra e 4it) "raAq: "all Street Journal: 2 Au-ust 2>12?

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by pipelines from "raq5s nort)ern fiel s? Co=ever +0 san&tions on "raq too# t)eir toll on "raqi-Tur#is) tra e relations? ,in&e t)e 2>>3 invasion an t)e eep stru&tural &)an-es it tri--ere in t)e /i le %ast: &ontemporary "raq )as been t)e subje&t of &ompetin- po=er plays bet=een ,au i Arabia: "ran an : to a lesser e'tent: Tur#ey? Tur#ey mean=)ile -aine international a&&laim for pursuin- a 5Eero problems =it) t)e nei-)bours poli&y5: a poli&y nurturinpositive ties =it) nei-)bourin- &ountries? 452 Co=ever t)e &risis in nei-)bourin- ,yria from 2>11 on=ar s: alon- =it) its &loser relations bet=een An#ara an "raq5s ,unnis an 1ur s: raise oubts about t)e 5Eero problems5 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#ey5s attitu e to=ar s t)e 1ur istan Re-ional .overnment 61R.7 )as s)ifte sin&e 2>>5? *espite in&reasin-ly stron- e&onomi& ties: bilateral en-a-ement bet=een "raq an Tur#ey )as been &onstraine in t)e past by Tur#ey5s reje&tion of risin- 1ur is) autonomy an t)e presen&e of (11 61ur istan 4or#ers5 (arty7 bases in nort)ern "raq: a&&or in- to O'for +niversity5s Casan Turun&?452 Co=ever Tur#ey ominates t)e e&onomy of t)e 1R. re-ion? T)e 1R. estimates t)at in 2>11 tra e bet=een 1ur istan 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) &ompan ies )ave ma e si-nifi&ant investments in t)e re-ion an Tur#is) ener-y &ompanies su&) as (et-Oil an .enel %ner-y )ave =on bi s to evelop oil an -as fiel s 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 ne-otiatin- =it) t)e 1ur is) 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 "raq5s stability an territorial inte-rity 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 1ir#u#: )ome to some of "raq5s lar-est oil reserves: is of -reat &on&ern to t)e Tur#s? A&&or in- to )is analysis Tur#ey5s prin&ipal an'iety is t)at t)e oil ri&)es of 1ir#u# =ill only en&oura-e t)e 1R. to see# -reater autonomy: =)i&) &oul spill over an spar# unrest ami Tur#ey5s o=n 1ur is) population? "n )is =or s: 5ener-y: e&onomy an infrastru&ture form t)e &ru' of Tur#is) involvement in "raq?5452 A&&or in- to t)e )conomist in 2>><: t)e +, en&oura-e t)e t=o si es to rebuil relations an +, offi&ials telep)one Tur#is) presi ent Ab ulla) .ul to praise It)e -ro= in- Tur#is)-"raqi relations)ipI: in t)e )ope t)at frien s)ip =it) Tur#ey =oul enable

452 5Tur#ey an "raq5: Academia: 2>11? 453 5(roblems =it) t)e nei-)bours5: )conomist: 2; Banuary 2>12? 454 51ur istan eyes major role in Tur#is) -as mar#et5: Petroleum )conomist: 13 *e&ember 2>12? 455 5%rasin- t)e $rontierATur#eyMs Tra e an "nvestment in "raqi 1ur istan5: /ufts lobal Leadershi1: 2>11? 456 5Tur#ey preparin- major 1ur istan oil entry5: Ira' 0il !e1ort: 21 /ay 2>12?

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"raq5s 1ur s to e'port t)eir oil an -as an &)e&# "ran5s influen&e in t)e re-ion? 453 .enel %ner-y5s Tony Cay=ar believes t)at by 2>2> 1ur is) -as e'ports &oul meet a fift) of Tur#ey5s fuel import nee s?45; "n April 2>12 t)e 1R. )alte e'ports to Tur#ey follo=in- a ispute =it) Ba-) a : )o=ever in t)e same year 1ur istan an Tur#ey )el is&ussions over t)e &onstru&tion of an e'port pipeline =)i&) =oul bypass t)e &entral -overnment5s &ontrol? "n a politi&ally &ontroversial move: t)e 1ur s also be-an to e'port &ru e by tru&# over t)e bor er to Tur#ey in Buly 2>12: in efian&e of Ba-) a ?45<

+#port infrastructure
Tur#ey5s epen en&e on ener-y 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 3>>:>>> barrels of oil a ay 6bp 7 but pro u&e only 5>:>>> bp 46>? Tur#ey is also lo&ate -eo-rap)i&ally in &lose pro'imity to aroun 32 per&ent of t)e =orl 5s proven -as reserves an 33 per&ent of oil reserves? 461 A&&or in- to 1)ale Al,)ari#) of Tufts +niversity: Tur#ey5s rulin- Busti&e an *evelopment (arty 6A1(7 see#s to be&ome a re-ional ener-y transit point an to iversify t)e sour&e of its oil an -as imports? A&&or in- to )is analysis: Tur#ey is a -eo-rap)i&ally pivotal t)ou-) ener-y-poor nation surroun e by ener-y-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 ea-erly 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 1ir#u#-!ey)an oil pipeline: one of t)e &ountry5s most si-nifi&ant operational e'port lin#s? 463 But outsi e of t)is net=or#: t)e li#eliest route for -as to be transporte ire&tly from 1ur istan =oul ta#e 1ur is) -as to $is) 1)abur: &lose to t)e Tur#is) bor er: from =)ere Tur#ey &oul buil t)e in frastru&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 5,out)ern !orri or5 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 be-in 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 5free -as5? Ce also &ommente t)at "raq i not nee t)e 0abu&&o pipeline to eliver -as to %urope?465
453 5An unusual ne= frien s)ip5: )conomist, 1< $ebruary 2>><? 45; 51ur istan eyes major role in Tur#is) -as mar#e5t: Petroleum )conomist: 13 *e&ember 2>12? 45< 5Tur#eyMs oil iploma&y =it) "raqi 1ur 5s: 4inancial /imes, 3> Buly 2>12? 46> 5Tur#ey - +?,? %ner-y "nformation A ministration5: retrieve Banuary <: 2>13? 461 5Tur#ey5s %ner-y ,trate-y5: /urkish (inistry of 4oreign Affairs: Banuary 2>><? 462 5%rasin- t)e $rontierATur#eyMs Tra e an "nvestment in "raqi 1ur ista5n: /ufts lobal Leadershi1: 2>11? 463 5Oil %'port Routes - "raq 2oo#s for a 4ay Out5: Petroleum )conomist: 14 *e&ember 2>1>? 464 50ort)ern "raq loo#s to e'port -as via Tur#ey an 0abu&&o5: Hurriyet %aily *e&s: 5 Buly 2>1>? 465 5"raq %yes %+ .as %'ports T)rou-) Tur#e5y: Petroleum )conomist: ; ,eptember 2>11?

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Common environmental concerns

"raq fa&es t)e t)reat of esertifi&ation at an avera-e 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#ey5s 1onya basin aroun ;> per&ent of =ater epletion )as o&&urre over t)e last e&a e an t)e basin fa&es t)e prospe&t of &omplete esertifi&ation by 2>3>? 466 T)e re-ional =ater &risis is t)ou-)t to be influen&e si-nifi&antly by e'ploration a&tivities in t)e oil se&tor?463 A&&or in- to /u)amma Amin $ars: .eneral-*ire&tor of 1ur istanMs "rri-ation an 4ater epartment 6<6:>>> )e&tares of "raqi a-ri&ultural lan are no= fa&in- rou-)t be&ause of Tur#is) ams?46; T)ere is also some isa-reement over national allo&ation of =ater from t)e %up)rates an Ti-ris 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 Ti-ris: an Tur#ey plannin- to use aroun 52 per&ent of t)e %up)rates an 14?1 per&ent of t)e Ti-ris? A&&or in- to Turun&: 5fe= &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 apparent5? 466 .re/uttit of &ampai-n -roup (latform also )i-)li-)ts t)at -reater re-ional iploma&y =it) nei-)bourin- Tur#ey is nee e re-ar in- t)eir &onstru&tion of upstream ams: in or er to ma#e pro-ress 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 ener-y nee s: but parti&ularly follo=in- t)e ispute over pri&es bet=een Russian .aEprom an transit &ountry +#raine in 2>><:43>t)ere )ave been moves to iversify t)e supply routes to 4estern %urope?431 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 ener-y 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&lear po=er by 2>22? %+ offi&ials note in 2>11 t)at %uropeMs annual -as &onsumption =as aroun 5>> billion &ubi& metres 6b&m7 per year: of =)i&) 125 b&m per year =as from Russia? 432 T)e %+5s efforts to establis) a 5sout)ern -as &or466 5Tur#ey an "ra5q: Academia: 2>11? 463 5"raq may suffer &lean =ater &risis in 15-2> years5: !euters: 21 ,eptember 2>11? 46; 54ater &onfli&t t)reatens re-ional relations5: *i'ash: 5 /ay 2>><? 46< 5/ission A&&omplis)e for Bi- OilH5:Huffington Post: 23 Au-ust 2>12? 43> 5Russia s)uts off -as to +#raine5: BBC: 1 Banuary 2>><? 431 5AEerbaijan-Tur#ey -as- eal #ey to !aspian ,upply5: Petroleum )conomist: 1 Banuary 2>><? 432 5Ta#in- a ,e&on 2oo# at t)e ,out)ern .as !orri or5: 0il Price: 1> /ay 2>12?

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ri or5 are part of a ener-y supply iversifi&ation proje&t aime at freein- %urope from its epen en&e on Russian -as? 433 !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= 5.reat .ame5 of t)e t=enty first &entury is over ener-y an t)at it is bein- playe out on t)e 5immense &)essboar &alle %urasia5? "n its most simplifie form it )as been 0abu&&o 6a pipeline proje&t supporte by t)e +,7 versus ,out) ,tream 6supporte by Russia7: an revolves aroun %uropean &ountries tryin- to &ir&umvent Russia in se&urin- ener-y supplies? A&&or in- 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 5&reature of 4as)in-ton5? 434

%ource of supplies
.as volumes for 0abu&&o an ot)er pipelines &oul &ome from a variety of pro u&in&ountries: in&lu in- AEerbaijan: Tur#menistan an 1aEa#)stan as =ell as "ran: "raq an potentially ot)er (ersian .ulf pro u&ers? A report by t)e O'for "nstitute for %ner-y ,tu ies su--este t)at politi&al instability in t)e /i le %ast )as re u&e t)e options to !entral Asian suppliers?435 Co=ever Tur#is) %ner-y an 0atural Resour&es /inister Taner 9il iE sai in late 2>12 t)at Tur#ey is rea y to a&t as a -as supply &or ri or from nort)ern "raq to %urope alon- t)e 5&orri or5? 436 ,upplies from Tur#menistan an 1aEa#)stan =oul rely on t)e &onstru&tion of t)e propose Trans-!aspian (ipeline 6T!(7?435

+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 Buly 2>12? T)e ,out)-%ast %urope (ipeline 6,%%(7 proje&t =as t)e final option to be eliminate from t)e sele&tion pro&ess: =)en in Bune 2>12 t)e &onsortium operatin- t)e ,)a) *eniE fiel preferre t)e 0abu&&o 4est option?433 ,%%(: a lo=er &ost an lo=er &apa&ity e'port option e'ten infrom Bul-aria to !entral %urope: =as roppe by its initial ba&#ers B(? 43;

'abucco *'abucco West+

T)e 0abu&&o proje&t =as initiate in 2>>2 an =as a&tively promote by t)e %+ un er its Trans-%uropean %ner-y 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
433 5Trans-!aspian pipeline tal#s pro-ressin-5: UPI: 16 /ar&) 2>12? 434 5Bumpin5 Ba&# Der i: "t5s a .as: .as: .asA "ran an t)e (ipelineistan Opera5: /ruthout: 1 O&tober 2>><? 435 51aEa#)stanMs .asA %'port /ar#ets an %'port Routes5: 05ford Institute for )nergy Studies: 0ovember 2>>;? 436 5TA0A( proje&t to a&&elerate 0abu&&o proje&t implementation5: *atural as )uro1e: 26 *e&ember 2>12? 433 50abu&&o 4est an TA( -o )ea to )ea 5: Petroleum )conomist: 2 Buly 2>12? 43; 5B(-le &onsortium rules out ,%%( pipeline5: 4inancial /imes9, :> June :;<:-

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&onstru&tion &ost of t)e 0abu&&o pipeline =as estimate billion7?43<

at Y3?< billion 6G12?3

T)e initial proje&t =as &on&eive to run 3:;<3 #ilometres 6#m7 from t)e .eor-ian-Tur#is) bor er to Baum-arten in Austria? 4;> 4)ereas 50abu&&o 4est5 is a revise version of t)e ori-inal 0abu&&o pipeline: an =as &)osen by t)e B(-le &onsortium operatin- t)e ,)a) *eniE .as $iel as t)e 5nort)ern route5 &an i ate for t)e pipeline: to &ompete )ea -to-)ea =it) t)e 5=estern route5 option: t)e Trans-A riati& (ipeline? 4;1 A&&or in- to t)e Petroleum )conomist: t)e &onsortium5s e&ision to opt for 0abu&&o 4est -ave a boost to t)e proje&t: =)i&) in its ori-inal form =as unable to attra&t suffi&ient -as supplies an eeme too e'pensive? 433 Over its lifetime t)e proje&t fa&e su&) 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 a-ain 1>1 times?K4;> T)e revise route =oul instea be-in at t)e Bul-arian-Tur#is) bor er an run 1:312 #ilometres to Baum-arten: &arryin- 1> b&m per year? T)e se-ment of t)e ori-inal 0abu&&o route &rossin- Tur#ey =as ma e unne&essary =)en AEerbaijan an Tur#ey a-ree in late 2>11 to buil t)e Trans-Anatolian (ipeline 6TA.(TTA0A(7? (artners in t)e proje&t in&lu e Tur#is) BOTA,: Bul-arian %ner-y Col in-: Cun-arian $.,@: Austrian O/D: .ermany R4% an Romanian Trans-aE? 4;2

)rans Adriatic !ipeline *)A!+

T)e TA( propose to ta#e 1> billion &ubi& metres 6b&m7 per year of natural -as a&ross .ree&e an Albania: &ontinuin- un erneat) t)e A riati& sea to t)e )eel of "taly5s boot: its ba&#ers &laimin- t)at t)ese volumes of -as &oul later be ouble ? T)e TA( &onsortium &omprises of .erman %?O0 615 per&ent sta#e7: ,=iss %.2 642?5 per&ent7 an 0or =e-ian ,tatoil 642?5 per&ent7? "n $ebruary 2>12 t)e ,)a) *eniE &onsortium in i&ate a preferen&e for t)e TA( over t)e rival "nter&onne&tor .ree&e-Tur#ey-"taly 6"T."7 option as t)e 5=estern-route5 &an i ate a)ea of ma#in- a final e&ision? 4;2 A&&or in- to t)e 4inancial /imes ,tatoil an ot)er ba#ers of t)e TA( route )ave ur-e 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

Russia5s 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 un er t)e Bla&# ,ea from Russia to Bul-aria? T)e pipeline is s&)e ule to be &omplete in 2>15: an from Bul-aria one bran&) =oul run sout) t)rou-) .ree&e to ,out)ern "taly: =)ile t)e ot)43< 51aEa#)stanMs .asA %'port /ar#ets an %'port Routes5: 05ford Institute for )nergy Studies: 0ovember 2>>;? 4;> 50abu&&o 4est ,ele&te As (otentaial Route $or AEeri .as5: Bloomberg: 2; Bune 2>12? 4;1 50abu&&o 4est in pipeline 5final55: Asia /imes 0nline: 3 Buly 2>12? 4;2 50abu&&o 4est in pipeline 5final55: Asia /imes 0nline: 3 Buly 2>12? 4;3 5B(-le &onsortium rules out ,%%( pipeline5: 4inancial /imes9, :> June :;<:-

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er =oul run nort) t)rou-) ,iberia an Cun-ary to=ar s nort)ern "taly? 4;4 0or ,tream =ill be &apable of &arryin- 63 billion &ubi& metres 6b&m7 per year? 4;5 T)e G<?1 billion 0or ,tream pipeline =oul ta#e natural -as from 4estern Russia uner t)e Balti& ,ea to .ermany? Russian ener-y firm .aEprom )ol s a &ontrollin- 51 per&ent interest in t)e proje&t: =it) .erman an *ut&) &ompanies )ol in- t)e re main er? T)e &)airman of t)e boar is former .erman !)an&ellor .er)ar ,&)roe er?4;3 0or ,tream =oul )ave a &apa&ity of 55 b&m per year? 4;5

4;4 5Bumpin5 Ba&# Der i: "t5s a .as: .as: .asA "ran an t)e (ipelineistan Opera5: /ruthout: 1 O&tober 2>><? 4;5 5Ta#in- a ,e&on 2oo# at t)e ,out)ern .as !orri or5: 0il Price: 1> /ay 2>12?

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International Entities
Operatin5 +nvironment in Iraq
%outhern Iraq
Bet=een 2>>; an early 2>1> "raq a=ar e a oEen &ontra&ts to international oil &om panies 6"O!s7: in&lu in- Royal *ut&) ,)ell: B(: %''on/obil: 2u#oil an !0(! of !)ina to evelop t)e reserves in t)e sout) of t)e &ountry? A&&or in- to /aria van er Coeven of t)e "nternational %ner-y A-en&y 6"%A7: t)e prin&ipal obsta&le for &ompanies operatin- "raq are t)e le-al questions raise by t)e -ov ernment5s failure to pass a )y ro&arbons la= to re-ulate t)e in ustry? Ot)er obsta&les are an immature oil fiel servi&es in ustry: &omple' -eolo-y: 4;6 infrastru&ture bottlene&#s an on-oin- se&urity &on&erns? 4;3 !orruption is also an obsta&le to operations 6in 2>12: Transparen&y "nternational ran#e "raq as only t)e 135t) most transparent &ountry in t)e =orl 7? $rom t)e perspe&tive of "O!s: t)e te&)ni&al servi&e &ontra&ts offere in t)e sout) are in&reasin-ly seen as less attra&tive t)an t)e pro u&tion s)arin- &ontra&ts 6(,!s7 offere by t)e 1R. to t)e nort)? %ni5s !%O: for one: &ommente in 2>12 t)at Iour a renaline 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 )conomist5s *ere# Bro=er su--este t)at t)e Te&)ni&al ,ervi&e A-reements 6T,As7 may prove more attra&tive to national oil &ompanies 60O!s7: parti&ularly t)ose from Asia: =)i&) see# t)e stability of a per-barrel arran-ement rat)er t)an t)e lu&rative but )i-)er ris# pro u&tion s)arin- a-reements 6(,As7 offere else=)ere?4;; 4)ile se&urity &on itions )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 tar-ets? Bombin-s of pipelines an ot)er fa&ilities )ave subsi e 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 forei-n oil &ompanies: an in 2>12 four employees of At)ens-base !onsoli ate !ontra&tors !ompany 6!!!7 =ere #i nappe in Basra?4;< %ven on&e se&urity issues are resolve : lo&al issues presente by &ommunities aroun t)e oilfiel s livin- in poverty )ave presente problems: a&&or in- to se&urity firm !ontrol Ris#s? 4;;

4;6 5As 1ur istan oil booms: eal-ma#in- a&&elerates5: Ira' 0il !e1ort: 3 *e&ember 2>12? 4;3 5"%A pre i&ts boom in "raq oil pro u&tion5: 4inancial /imes: < O&tober 2>12? 4;; 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12? 4;< 5Oil =or#ers #i nappe in Basra5: Ira' 0il !e1ort: 13 /ay 2>12?

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Iraqi 8urdistan
T)e first &ompanies to invest in t)e semi-autonomous 1ur istan re-ion in t)e nort) of "raq =ere smaller: less =ell-#no=n outfits su&) as 0or=e-ian *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 &onsi ers t)e eals si-ne ire&tly =it) t)e 1ur istan Re-ional .overnment 61R.7 as ille-al an t)e moves )ave le to on-oin- isputes bet=een t)e &entre an t)e perip)ery?4<1 A senior 1R. offi&ial estimate t)at in 2>12 t)ere =ere aroun 45 to 5> &ontra&tors op eratin- in t)e re-ion: but a&&or in- to Ira' 0il !e1ort t)e 1ur istan re-ion =itnesse a flurry of mer-ers an a&quisitions in 2>12: a pro&ess a&tively en&oura-e 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 stru--le to raise t)e finan&in- require an -et squeeEe out? 4<> 4)ile reserves are smaller in 1ur istan t)an in t)e sout): many investors are attra&te by ot)er favourable &on itions? Asi e from t)e more attra&tive &ontra&t re-ime use by t)e 1R.: 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 1ur istan: a&&or in- to t)e Petroleum )conom3 ist? (o=er supplies an ot)er infrastru&ture in 1ur istan is also superior: a&&or in- to t)e "raq %ner-y "nstitute: an se&urity &on itions are more favourable? 4<2

,P
Type Tra e as $oun e Cea quarters 1ey people Revenue (rofit Total assets (ubli& 2imite !ompany 2,%AB( 1<>< 6as An-lo-(ersian Oil7: 1<54 6as Britis) (etroleum7 2on on: +1 !arl-Cenri& ,vanber- 6!)airman7: Bob *u ley 6!%O7 +, G3;6?5 billion 62>1174<3 +, G26?1 billion 62>1174<3 +, G2<3?1 billion 6en 2>1174<3

4<> 5As 1ur istan oil booms: eal-ma#in- a&&elerates5: Ira' 0il !e1ort: 3 *e&ember 2>12? 4<1 5"%A pre i&ts boom in "raq oil pro u&tion5: 4inancial /imes: < O&tober 2>12? 4<2 5Oil =or#ers #i nappe in Basra5: Ira' 0il !e1ort: 13 /ay 2>12? 4<3 5Annual Reportin- 2>115: BP: 2>12?

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Total equity %mployees 4ebsite

+, G112?5 billion 6en 2>1174<3 ;3:4>> 6en 2>1174<4 ===?bp?&om

0lobal snapshot
B( is a Britis) -lobal ener-y &ompany )ea quartere in 2on on: ran#e in 2>1> by (latts as t)e se&on lar-est ener-y &ompany in t)e =orl base on finan&ial performan&e: trailin- %''on/obil? "t improve its position from fourt) in t)e ran#in-s in 2>>;?4<5 B( be-an business as An-lo-(ersian Oil in 1<><: 4<6 =)i&) e'porte its first &ar-o of oil in /ar&) 1<12 from Aba an in "ran? $rom 1<14 until t)e 1<;>s: t)e Britis) -overnment =ere t)e &ompany5s prin&ipal sto&#)ol er an sin&e t)en B( )ave a&quire t)e ,tan ar Oil !ompany in 1<;3: mer-e =it) +, &ompany Amo&o in 1<<; an a&quire Atlanti& Ri&)fiel an Burma) !astrolan in 2>>>?4<3 At t)e en of 2>11 B( )a total proven -lobal reserves of 13?35 billion barrels of oil equivalent 6boe7 an pro u&e 2?35 million barrels of oil per ay 6bp 7 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&on o oil spill in t)e .ulf of /e'i&o: t)e +,5s lar-est ever oil isaster? T)e *eep=ater CoriEon oil =ell e'plosion #ille 11 =or#ers an is estimate to )ave affe&te aroun 1:>>> miles of s)oreline: 2>> miles of =)i&) =ere t)ou-)t to be 5)eavily oile 5? Co=ever: t)e e'a&t e'tent of t)e spill )as been ispute by ifferent parties? 4<; T)e &ompany ma e t)e e&ision to sell none-&ore assets in or er to pay for t)e &lean-up operation an to &ompensate vi&tims? "n O&tober 2>11: B( finally re&eive aut)orisation to resume rillinat t)e site4<< an in 0ovember 2>12 t)e &ompany settle all &laims =it) t)e +, *epartment of Busti&e an t)e ,e&urities an %'&)an-e !ommission for G4?5 billion? 5>>

,P operations in Iraq
#istory
B(5s relations)ip =it) "raq ates ba&# as far as 1<23: =)en alon- =it) %''on: Total an ,)ell: it )a a 23?35 per&ent s)are in t)e "raq (etroleum !ompany 6"(!7? 5>1 $ollo=in4<4 5B( at a -lan&e5: BP: retrieve 13 *e&ember 2>12? 4<5 5(latts Top 25> .lobal %ner-y !ompany Ran#in-s5: Platts )nergy: retrieve 25 O&tober 2>11? 4<6 5BusinessA T)e !ompany $ile $rom An-lo-(ersian Oil to B( Amo&o5: BBC *e&s: 11 Au-ust 1<<;? 4<3 5B( (2!5: History-com: retrieve 25 O&tober 2>11? 4<; 5*eep=ater CoriEon an t)e .ulf oil spill - t)e #ey questions ans=ere 5: /he uardian: 2> April 2>11? 4<< 5Oil -iant B( rea&)es 5turnin- point55: BBC *e&s: 25 O&tober 2>11? 5>> 5Re&or G4B ,ettlement $or B( On !riminal !)ar-es Re-ar in- /a&on o A&&i ent5: 4orbes: 15 0ovember 2>12? 5>1 5Oil .iants Return to "raq5: /he Inde1endent: $ri ay: 2> Bune 2>>;?

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&ontra&ts si-ne in t)e 1<3>s: t)e "(! -aine full &ontrol over "raq5s oil 5>2 an t)us #ept "raq5s oil reserves un er forei-n &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 1u=aiti bor er: in 1<53 5>3 before &losinits representative offi&e t)ere ue to t)e =ar =it) 1u=ait in 1<<> 5>4? B( restarte =or# in "raq: more spe&ifi&ally on Rumaila: in April 2>>5 after si-nin- a servi&e a-reement =it) "raq5s 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>3 "n a venture =it) !)ina 0ational (etroleum !ompany 6!0(!7: B( ma e a su&&essful bi for a servi&e &ontra&t in t)e Rumaila oil fiel : "raqMs lar-est: in t)e first post=ar &ontra&t li&ensin- roun in Bune 2>><?5>; B( an !0(! =on t)e bi after a-reein- to &ut t)eir requeste remuneration fee from +, G3?<< per barrel to G2 per barrel? 5>6 B( )ol s a 3; per&ent sta#e in t)e venture: =)ile !0(! )ol s 33 per&ent an "raq ta#es t)e remain in- 25 per&ent?5>< B( =rote in its 2>>< Annual Revie= t)at it inten e to in&rease pro u&tion in Rumaila from appro'imately 1 million barrels per ay 6bp 7 to 2?;5 million bp 51> an to-et)er =it) !0(! plans to spen aroun G15 billion at Rumaila 511 by 2>13: a&&or in- to t)e %efence !e1ort =ebsite?512 At t)e en of /ar&) 2>1> t)e &ompany announ&e t)at it )a a=ar e G5>> million in &ontra&ts to rill =ells at Rumaila 513 an over t)e &ourse of 2>1>: B( an !0(! rille 41 out of t)e 3> =ells ori-inally planne ? 514 B(Ms former )ea of pro u&tion An y "n-lis su--este in April 2>1> t)at t)e fiel may be&ome t)e =orl Ms se&on -lar-est 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 pro u&tion at Rumaila: alon- =it) ot)er fiel s in "raq5s sout): &oul mar# one of t)e lar-est e'pansions of oil pro u&tion ever a&)ieve ? 513 /he uardian ne=spaper in Buly 2>11 reporte t)at B( )a se&retly rene-otiate its ser5>2 5B( J ,tealin- "raqMs $utur 5: Shareholder Briefing by PLA/40!(, April 2>>;? 5>3 5Rebirt) of Rumail 5: 08 *e5t eneration (aga#ine: $ebruary 2>1> e ition? 5>4 5B(-2e !onsortium 4ins "raq Oil *eal5: CBS *e&s: 13 O&tober: 2>>< 5>5 5B( in Rumaila5: from spee&) by /i&)ael ! *aly: B( Cea of %'ploration: on 16 $ebruary 2>1>? 5>6 5B(5s "raq oil eal fa&es &ourt battle5: 23 Banuary 2>1>? 5>3 5B( an !0(! si-n first major oil eal =it) "raq in almost 4> years5: /he *ational, ; O&tober 2>><? 5>; 5"raq: Oil an .as 2e-islation: Revenue ,)arin-: an +?,? (oli&y5: (iddle )astern Affairs, 3 0ovember 2>><? 5><5B(-!)ina 0ational .roup ,i-ns (a&t for "raq Oil $iel 5: "all Street Journal: 4 0ovember 2>><? 51> 5B(5s Annual Revie=5: BP, 2>><? 511 5B( to Be (ai in !ru e for "raq "nvestment !osts 5: Bloomberg, 2; April 2>1>? 512 5.ro=in- Britis) investment in "raq t)reatene by Russian &ompetition5: %efence !e1ort, 2 0ovember 2>12? 513 5B( Be-ins Bi- (us) to Revive "raq5s Oil 5: "all Street Journal, 31 /ar&) 2>1>? 514 5(etrofa& BD sna-s Rumaila job5: 0il 0nline: 2< Bune 2>11?

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vi&e &ontra&t for t)e Rumaila fiel : in =)i&) t)e Ba-) a -overnment a-ree to pay t)e firm even =)en Rumaila oil is not bein- pro u&e ? +n er t)e ne= terms B( =oul be imme iately &ompensate for &ivil isruption or -overnment e&isions to &ut prou&tion? T)e story quote &riti&s =)o see t)is as a major step a=ay from t)e ori-inal terms of t)e eal si-ne in t)e summer of 2>><: in&lu in- aut)or .re- /uttitt: =)o &alle t)e rene-otiation Ia ba&#room eal t)at -ave B( a stran-le)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 "raq5s &entral -overnment in Ba-) a =ante B( to revive t)e a-ein- 1ir#u# oil fiel in nort)ern "raq: =)i&) is sufferin- from massive pro u&tion e&lines? !euters &ite in ustry sour&es sayin- t)at t)e -overnment =as see#in- to stren-t)en its position in a ispute =it) semi-autonomous 1ur istan over o=ners)ip of nort)ern "raqi fiel s: an t)at brin-in- B( into 1ir#u# &oul allo= t)e "r aqi -overnment to &ounter %''on/obil5s move into 1ur istan? T)e story in i&ate t)at B( =as a&tively &onsi erin- 1ir#u#: but t)at t)is =as in t)e early sta-es an ne-o tiations )a not yet be-un?516

Chevron Corporation
Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et in&ome V &)an-e on previous year Total Assets %mployees 4ebsite (ubli& 2imite !ompany 09,%A!DZ 1<;4513 ,an Ramon: !alifornia?51; Bo)n 4atson 6!)airman an !%O751< +, G244?4 billion 62>11752> +, G 26?< billion52> [41?4V52> +, G2><?5 billion 6en 2>11752> 53:336 6en 2>11752> ===?&)evron?&om

515 5B( 5)as -aine stran-le)ol over "raq5 after oilfiel eal is re=ritten5: /he uardian, 31 Buly 2>11? 516 5"raq =ants B( to revive nort)ern 1ir#u# oilfiel 5: !euters, 13 April 2>12? 513 5!ompany (rofile5: Chevron: retrieve 22 Banuary 2>12? 51; 5A Brief Cistory Of /ajor Oil !ompanies "n T)e .ulf Re-ion5 University of ?irginia: retrieve 22 Banuary 2>12? 51< 5!orporate Offi&ers5: Chevron: retrieve 22 Banuary 2>12? 52> 52>11 Annual Report5: Chevron, 2>11?

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0lobal snapshot
As of 2>11 !)evron =as t)e se&on lar-est inte-rate oil firm )ea quartere 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 2os An-eles: in 1;3<: =)i&) le to &reation of t)e (a&ifi& !oast Oil !ompany? T)e &ompany =as subsequently rename t)e ,tan ar Oil !ompany of !alifornia: =)i&) emer-e from t)e brea#up of Ro&#efeller5s ,tan ar Oil? an later be&ame !)evron =)en it a&quire t)e .ulf Oil !orporation in 1<;4: at t)e time t)e lar-est mer-er in +, )istory? 522 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 63?14 billion &ubi& metres7? *aily li qui s pro u&tion =as 1?;5 million barrels per ay 6bp 7 an -as pro u&tion =as 4?<4 billion &ubi& feet 61?4 billion &ubi& metres7 per ay? 523 "n late 2>11 !)evron =as banne by BraEilian re-ulators 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 or er to move to=ar s restartin- output?525

Chevron operations in Iraq

#istory
*urin- t)e perio of international san&tions on ,a am Cussein5s re-ime: !)evron =as one of t)e &ompanies t)at pur&)ase &ru e from t)e re-ime as part of t)e +0 Oilfor-foo pro-ram esi-ne to brin- )umanitarian ai to t)e "raqi people? "n 0ovember 2>>3 !)evron a-ree to pay G3> million to settle &)ar-es brou-)t a-ainst it un er t)e $orei-n !orrupt (ra&ti&es A&t 6$!(A7: but i not a mit or eny t)e alle-ations ma e by t)e ,e&urities an %'&)an-e !ommission 6,%!7? T)e &)ar-es relate to appro'imately G2> million in ille-al #i&#ba&# payments ma e to "raq in 2>>1 an 2>>2? 526 "n a lea#e +, iplomati& &able from 2>1>: !)evron5s &ountry mana-er for "raq e'presse t)e &ompany5s ea-erness to invest in post-,a am "raq: but Inot at any pri&eI? A&&or in- to t)e &able: !)evron e'presse stron- interest in a bi roun for e'ploration blo&#s: =)i&) it &onsi ere to be politi&ally an e&onomi&ally attra&tive: )o=ever t)e &able es&ribe !)evron5s approa&) to=ar s "raq as more &autious t)an ot)er in ternational oil &ompanies 6"O!s7? !)evron =as in&lu e on t)e list of pre-qualifie
521 5!)evron !orporation5: Hoovers: retrieve 22 Banuary 2>12? 522 5!ompany (rofile5: Chevron: retrieve 22 Banuary 2>12? 523 52>11 Annual Report5: Chevron, 2>11? 524 5!)evron Banne $rom *rillin- "n BraEil After Oil ,pill5: 4orbes: 23 0ovember 2>11? 525 5!)evron nears settlement in BraEil spill &ase5: !euters: 14 *e&ember 2>12?? 526 5!)evron to (ay G3> /illion to ,ettle !)ar-es $or "mproper (ayments to "raq +n er +?0? Oil $or $oo (ro-ram5: Securities and )5change Commission: 14 0ovember 2>>3?

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&ompanies to parti&ipate in t)e first li&ensin- roun 523 an t)e &ompany =as $ren&) Total5s ori-inal partner for bot) bi in- roun s in 2>><: but ultimately refuse to join t)e bi in-: re-ar in- t)e remunerations fees offere as unreasonably lo=? 52;

Activities and contracts

Rovi and Sarta (Kurdistan) On t)e 1< Buly 2>12 !)evron announ&e t)at its subsi iaries in "raq )a &omplete a eal to a&quire an ;> per&ent interest in t=o blo&#s in t)e nort)ern 1ur istan Re-ion: t)e Rovi an ,arta blo&#s? T)e remainin- 2> per&ent interest =as ta#en by O/D subsiiaries? un er t)e frame=or# of a pro u&tion s)arin- &ontra&t 6(,!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 si-ne =it) t)e 1R.: later t)at mont) "raq5s fe eral -overnment 5bla&#liste 5 !)evron: bannin- t)em from bi in- for e'ploration li&enses in future li&ensin- roun s? T)e &entral -overnment &onsi ers &ontra&ts si-ne ire&tly =it) t)e 1R. as ille-al?53>

China National Offshore Oil Corporation CNOOC!

Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et "n&ome V &)an-e on previous year Total Assets ,tate-o=ne ,%C1A >;;3 N 09,%A !%O 1<;2 Beijin-: !)ina $u !)en-yu 6!)airman7: 9an- Cua 6!%O7531 R/B 24>?< billion 6appro'? +, G3;?6 billion 7: 2>11?532 R/B 3>?3 billion 6appro'? +,G11?3 billion7: 2>11?532 [2<?1V532 R/B 3;4?3 billion 6appro'? +,G61?6 billion7: en 2>11?533

523 5Oil /inistry Announ&es Fualifi&ation Results5: "ikileaks: 15 April 2>>;? 52; 5!)evron On "o& "nvestin- "n "raq5: "ikileaks: 2> $ebruary 2>1>? 52< 5!)evron A&quires "nterest in 1ur istan !on&ession5s: Chevron: 1< Buly 2>12? 53> 5"raq bans !)evron over 1ur istan eal5: 4inancial /imes: 24 Buly 2>12? 531 5Annual Report 2>1>5: C*00C: 2>11? 532 5Annual Report 2>115: C*00C, 2>11?

<<

Total %quity %mployees 4ebsite

R/B 262?< billion 6appro'? +,G42?2 billion7: en 2>11?533 5:333 6en 2>117534 ===?&noo&lt ?&om

0lobal snapshot
!0OO! 2t 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- 1on- sto&# e'&)an-es? T)e !0OO! .roup is !)ina5s lar-est pro u&er of offs)ore &ru e oil an natural -as an mainly en-a-es in e'ploration: evelopment: pro u&tion an sales of oil an natural -as? T)e .roup )as four major pro u&in- areas in offs)ore !)ina an )as overseas assets in "n onesia: Australia: 0i-eria: Ar-entina an t)e +,: amon- ot)ers? As of *e&ember 2>1>: t)e &ompany5s overseas prove reserves an pro u&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 6joe7 an avera-e aily net pro u&tion =as <><:>>> barrels per ay 6bp 7? "n 2>>5 !0OO! =it) re= an G1;?5 billion ta#eover bi it )a ma e for +, oil an -as pro u&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? 533

CNOOC operations in Iraq

#istory
T)e te&)ni&al servi&e &ontra&t si-ne in 2>1> for t)e /aysan oil fiel s: lo&ate about 35> #ilometers sout)east of Ba-) a : mar#e t)e start of !0OO!5s operations in "raq?53;

Activities and contracts

Maysan "n /ay 2>1> !0OO! si-ne a te&)ni&al servi&e &ontra&t =it) t)e "raqi -overnment 53< to
533 5Annual Report 2>151: C*00C? 534 5About us5: C*00C: retrieve 1; *e&ember 2>11? 535 5!noo& ba-s oil fiel eal in "raq5: China %aily: 1; /ay 2>1>? 536 5Annual Report 2>1>5: C*00C: 2>11? 533 5!)inese oil firm rops +no&al bi 5: uardian: 2 Au-ust 2>>5? 53; 5!0OO! 2t ? Announ&es t)e ,i-nin- of Te&)ni&al ,ervi&e !ontra&t for /issan Oil $iel s in "raq5: C*00C Limited: 13 /ay 2>1>? 53< 5!0OO! 2t ? Announ&es t)e ,i-nin- of Te&)ni&al ,ervi&e !ontra&t for /issan Oil $iel s in "raq5: C*00C Limited: 13 /ay 2>1>?

1>>

evelop t)e /aysan oilfiel &omple' alon- =it) Tur#is) state-run T(AO? !0OO!5s ori-inal partner for evelopin- t)e fiel s: ,ino&)em: pulle out of t)e eal =)en !0OO! e&i e to re&onsi er its ori-inal offer an a&&ept t)e "raqi -overnment5s propose remuneration fee of +, G2?3> per barrel of oil pro u&e ? T(AO t)en joine t)e venture to fill t)e -ap? !0OO! an T(AO set a pro u&tion plateau tar-et for t)e fiel s at 45>:>>> barrels per ay 6bp 7? !0OO! )ol s a 63?35 per&ent sta#e in t)e venture: =)ile T(AO )ol s 11?25 per&ent 54> an t)e "raq *rillin- !ompany 6"*!7 )ol s a 25 per&ent sta#e?541 !)airman !)en-yu &ommente t)at Iit is a pleasure for !0OO! to parti&ipate in rebuil in- of t)e oil in ustry in "raqI an analysts tol t)e China %aily t)at t)e move unerlines omesti& oil &ompanies5 fo&us on evelopin- oil resour&es in "raq: sayin- t)at It)e &ountry remains one of t)e fe= re-ions in t)e =orl =)ere !)inese &ompanies &an still fin bi- opportunitiesI?542

China National Petroleum Corporation CNPC!

Type $oun e Cea quarters 1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite .overnment-o=ne !orporation 1<;; Beijin-: (R !)ina Bian- Biemin 6(resi ent7 +, G352?3 billion 62>117543 +, G16?3 billion 62>117543 [13?6V +, G4;1?1 billion543 +, G24>?5 billion543 1:66;:>32 62>127543 ===?&np&?&om?&n

0lobal snapshot
.overnment-o=ne !0(! is !)ina5s lar-est inte-rate oil an -as &ompany: =it) e'ploration an pro u&tion proje&ts in !)ina an 3> ot)er &ountries? "t is an oilfiel servi&es provi er in 5> &ountries an operates some ol er refineries an a -as pipeline
54> 5"raq in eal =it) !0OO!: T(AO for /aysan oilfiel s5: Best ro&th Stock quotin- !euters: 12 /ay 2>1>? 541 5"nternational A&tivities5: /PA0: retrieve 13 *e&ember 2>11? 542 5!noo& ba-s oil fiel eal in "raq5: China %aily: 1; /ay 2>1>? 543 5.lobal 5>>A !)ina 0ational (etroleum5: C** (oney: retrieve 1; *e&ember 2>12?

1>1

net=or# in !)ina 6in&lu in- 3> per&ent of t)e &ountry5s &ru e oil pipelines7? T)e !0(! )as a net=or# of 1;:>>> -as stations a&ross !)ina?544 T)e or-anisation =as establis)e in 1<<; an reor-anise in 1<<; to be&ome an inte- rate &ompany?545 !0(! is t)e &ontrollin- s)are)ol er of (etro&)ina !ompany 2imite ?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 !005s .lobal 5>> list of t)e =orl 5s lar-est &orporations?543 !0(!5s 2>1> Annual Report notes t)at !0(! )as been see#in- a -reater international role over t)e past five years? 54; A&&or in- to t)e $ortune .lobal 5>>: part of !0(!5s stren-t) &omes from its 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(!5s involvement in "raq ates ba&# to 1<<3: =)en !0(! si-ne a eal =it) ,a am Cussein5s -overnment to evelop t)e A) ab oilfiel ? 55> T)e eal =as bet=een al-4a)a (etroleum !ompany: 6a joint venture bet=een t)e !0(! an !)ina 0ort) "n ustries !orporation7 an t)e "raqi -overnment at t)e time? Co=ever: t)is a-reement =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(! rene-otiate t)e eal for t)e A) ab oil fiel =it) "raq5s /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 fiel s?

Activities and contracts

Ahdab +n er t)e terms of t)e servi&e &ontra&t rene-otiate in 2>>;: 553 oil output from A) ab is e'pe&te to rise to 11>:>>> barrels per ay 6bp 7: up from t)e <>:>>> bp fore&ast in t)e ori-inal ealN an total investment in t)e proje&t =oul be about +, G3 billion? 554
544 5!)ina 0ational (etroleum !orporationA !ompany *es&ription5: Hoovers: retrieve ; *e&ember 2>11? 545 5Cistory5: C*PC: retrieve 1; *e&ember 2>12? 546 5"nvestor Relations5: Petrochina: retrieve 1; *e&ember 2>12? 543 5.lobal 5>>A !)ina 0ational (etroleum5: C** (oney: retrieve 1; *e&ember 2>12? 54; 52>1> Annual Report5: C*PC: 2>1>? 54< 5$ortune 5>>A !)ina 0ational (etroleum !orporation5: C** (oney: retrieve < *e&ember 2>11? 55> 5T)e !)inese 0ational (etroleum !ompany 5: /he International !esource Journal: /ar&) 1> 2>1>? 551 5!0(! in "raq 5: !0(! 4orl =i e: retrieve Banuary 2>11? 552 5!)ina5s !0(! seals G3bn "raq eal 5: BB! 0e=s: 2; Au-ust 2>>;? 553 5!0(! in "raq5: C*PC: retrieve 14 0ovember 2>12? 554 5!)ina5s !0(! seals G3bn "raq eal 5: BBC *e&s: 2; Au-ust 2>>;?

1>2

!0(! be-an =or# on t)e fiel in /ar&) 2>><: espite protests from lo&al farmers: 555 an in Bune 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(! )ol in- a 33?5 per&ent sta#e in t)e proje&t? Total an (etronas )el 1;?35 per&ent ea&) an "raqi state-run ,out) Oil !ompany 6,O!7 )el t)e remainin- 25 per&ent sta#e? 556? Rumaila "n Bune 2>>< !0(! =as part of a B(-le &onsortium =)i&) =on a servi&e &ontra&t to evelop t)e Rumaila oil fiel : "raqMs lar-est?553 T)e lon- term &ontra&t se&ure by t)e B(le &onsortium =as t)e first in post-2>>3 "raqN 55; !0(! )ol s a 33 per&ent sta#e in t)e venture: =it) B( )ol in- 3; per&ent an t)e "raqi state t)e remainin- 25 per&ent? 55<B( )as sai t)at to-et)er =it) !0(! t)ey =ill spen aroun +, G15 billion at Rumaila? 56> !0(! re&eive a 2 million barrel &ar-o of &ru e as its first payment for evelopin- Rumaila in /ay 2>11?561 West urna !

Bloomber- reporte in Au-ust 2>12 t)at !0(! =as in tal#s =it) Russia5s 2u#oil about joinin- t)e &ompanyMs 4est Furna 2 proje&t: a&&or in- to ener-y intelli-en&e -roup 0efte !ompass? T)e ener-y -roup reporte t)at 2u#oil =as see#in- a partner for a 3> per&ent sta#e in t)e proje&t follo=in- ,tatoilMs e'it: &itin- An rei 1uEyaev: )ea of 2u#oil Overseas?562

Discount oil sales

!euters reporte in 0ovember 2>12 t)at "raq =as stru--lin- 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 "raq5s 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 &ru e for t)eir evelopment &ontra&ts: an are entitle to re-sell t)e oil provi e t)ey Ioffi&ially informI ,O/O? 563

555 5!0(! &ompletes Al-A) ab "raq oilfiel &onstru&tion5: Arabian 0il and as: 23 Bune 2>11? 556 5"raq A !0(!5s Calfaya proje&t in "raq to start operation in C25 : /he 4ree Library: < /ar&) 2>1>? 553 Blan&)ar : !)ristoper /: 5"raq: Oil an .as 2e-islation: Revenue ,)arin-: an +?,? (oli&y5: 3 0ovember 2>><? 55; 5B(5s "raq oil eal fa&es &ourt battle 5: /elegra1h, 23 Banuary 2>1>? 55< 5B(-!)ina 0ational .roup ,i-ns (a&t for "raq Oil $iel 5: "all Street Journal: 4 0ovember 2>><? 56> 5B( to Be (ai in !ru e for "raq "nvestment !osts5: Bloomberg, 2; April 2>1>? 561 5!0(! .ets $irst Oil (ayment for Rumaila5: Ira' Business *e&s: 3> /ay 2>11? 562 5!0(! in Tal#s 4it) 2u#oil on 4est Furna-2: 0efte !ompass ,ays5: Bloomberg: < Au-ust 2>12? 563 5"raq stru--les to si-n up oil buyers for 2>13 term eals5: !euters: 3 0ovember 2>12?

1>3

DNO International
Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et "n&ome V &)an-e on previous year Total Assets Total %quity 4ebsite (ubli& 2imite !ompany O,%A*0O 1<31 Oslo: 0or=ay Cel-e %i e 6(resi ent an /*7: Ber-e 2arsen 6!)airman7 0O1 2?1 billion: 6appro'? G36<?3 million7: 2>11?564 0O1 653?2 million 6appro'? +, G116?3 million7564 33>?<V564 0O1 5 billion 6appro'? +, G;<<?4 million7: en 2>11?564 0O1 2?2 billion 6appro'? +, G3;5?3 million7: en 2>11?564 ===? no?no

0lobal snapshot
*0O "nternational A,A is a 0or=ay-base oil an -as e'ploration an pro u&tion &ompany? "t =as foun e in 1<31 an =as t)e first 0or=e-ian oil &ompany to be liste on t)e 0or=e-ian sto&# e'&)an-e? "nitial e'ploration an pro u&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 un erta#en in t)e /i le %ast: Afri&a an in t)e +1? T)e &ompany )ol s oil an -as assets in 9emen: t)e 1ur istan re-ion of "raq: t)e 0ort) ,ea: /oEambique an %quatorial .uinea? T)e &ompany is also a&tive on t)e 0or =e-ian !ontinental ,)elf?566 At t)e en of 2>11 *0O )el total remainin- proven an probable reserves 62(7 of 331?< million barrels of oil equivalent 6boe7? T)is represente a <1?5 per&ent year-onyear in&rease sin&e 2>1>: lar-ely ue to t)e up=ar revision of re&overable reserve es timates at t)e Ta=#e fiel in "raqi 1ur istan? 563 .ross pro u&tion in 2>11 =as 64:1;5 million barrels of oil equivalent 6boe7 per ay? 56;

564 5Annual Report an A&&ounts 2>115: %*0, 2>11? 565 5Cistory5: %*0: retrieve 1; *e&ember 2>12? 566 5*0O "nternational A,A5: !euters: retrieve 22 *e&ember 2>11? 563 5*0O "nternational Releases Annual ,tatement of Reserves5: %*0 International: 3> April 2>12? 56; 5Annual Report an A&&ounts 2>115: %*0 International, 2>11?

1>4

DNO operations in Iraq

#istory
*0O5s a&tivities in "raq be-an in 2>>4: =)en *0O si-ne a pro u&tion s)arin- &ontra&t 6(,!7 for t)e Ta=#e fiel =it) t)e 1ur istan Re-ional .overnment 61R.7? 56< *0O )as (,!s for t)ree &ontra&t areas in t)e 1ur istan re-ionA Ta=#e: *o)u#: an %rbil? 53> *0O )as a lo&al offi&e in %rbil: =)ile its a&tivities in 1ur istan are mana-e from anot)er offi&e in *ubai?53> T)e 1R. temporarily suspen e *0O5s oil &ontra&ts in ,eptember 2>>< after a o&ument issue by t)e Oslo ,to&# %'&)an-e implie t)at 1R. 0atural Resour&es /inister As)ti Ca=rami =as involve as a benefa&tor in t)e sale of *0O s)ares to .enel %ner-y in O&tober: alle-ations t)at t)e 1R. enie an respon e t=o by suspen in- *0O5s &ontra&ts for si' =ee#s?531 *0O )as been involve in t=o &ontroversies re-ar in- t)e )irin- of senior +, offi&ials to promote its a&tivities in 1ur istan? 532 "n 2>>5: (eter .albrait) =as pai by *0O in an a visin- role even as .albrait) in )is offi&ial &apa&ity as a +, iplomat =as a visin- on &onstitutional arran-ements: =)i&) resulte in t)e 1R. aut)orities &laimin- support for re-ional mana-ement of t)e oil in ustry?533 T)en in mi -2>1>: former +, ambassa or to "raq @almay 1)alilEa =as nominate for t)e boar of *0O: t)ou-) )e later e&line to fill t)e post?534

Activities and contracts

"a#ke (Kurdistan) T)e Ta=#e &ontra&t area: in =)i&) *0O )as a 55 per&ent =or#in- interest: 535 is lo&ate in nort)ern "raq near t)e Tur#is) an ,yrian bor ers? After si-nin- t)e initial (,! in 2>>4: *0O first is&overe oil at t)e Ta=#e fiel in 2>>6: =it) test pro u&tion of oil &ommen&in- by 2>>3? 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 be-an in 2>11? 536 As of 0ovember 2>11 t)e fiel )a a pro u&tion &apa&ity of 3>:>>> barrels per ay 6bp 7 but a&tually pro u&e about 5>:>>> bp ? 535 A ispute bet=een t)e 1R. an Ba-)a over oil e'ports &ause pro u&tion to slo= to 13:>>> bp in t)e se&on quarter of 2>12: but *0O mana-in- ire&tor Cel-e %i e sai in Au-ust 2>12 t)at t)e &ompany =as

56< 51ur istan re-ion of "raq5: %*0 International, retrieve 14 0ovember 2>12? 53> 52>1> Annual Report5: %*0 International, retrieve 3> 0ovember 2>11? 531 51R. suspen s *0O oil &ontra&ts5: United Press International, 22 ,eptember 2>><? 532 5T)e 1)alilEa *0O affair an t)e .albrait) parallels5: ulf Analysis, 24 Bune 2>1>? 533 5*0O (ays .albrait) an 1eeps Business in 1ur istan5: !uda&, 11 O&tober 2>1>? 534 51)alilEa =on5t join *0O5: Ira' 0il !e1ort, 12 Au-ust 2>1>? 535 5*0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel 5: Ira' %aily /imes, 15 0ovember 2>11? 536 51ur istan re-ion of "raq5: %*0 International, retrieve 14 0ovember 2>12?

1>5

on tra&# to in&rease pro u&tion at Ta=#e to 1>>:>>> bp by t)e en of t)e year? 533 $rbil (Kurdistan) *rillin- at t)e %rbil &ontra&t area just nort) of t)e 1R. &apital &ity of t)e same name: in =)i&) *0O )as a 4> per&ent =or#in- interest: 53; be-an in 2>11?53< "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 fiel 5s -ross oilin-pla&e volumes from 3>> million barrels to an estimate 6>>-3>> 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# be-an in 2>1> 5;2 an as of 0ovember 2>12 it remaine an e'ploration area?5;3

Dra5on Oil
Type Tra e as $oun e Cea quarters 1ey (eople (ubli& 2imite !ompany ",%AR*,A 2,%A*.O 1<315;4 *ubai 6+A%7 /o)amme Ab ulla) A)me Al .)urair 6!)airman7: Ab ul-Baleel Al-1)alifa 6!%O7

4ebsite

===? ra-onoil?&om

0lobal snapshot
*ra-on Oil =as establis)e in 1<31 as Oliver (rospe&tin- 8 /inin- !o? 2imite : in&orporate an re-istere in "relan : an in 1<<3 &)an-e its name to *ra-on Oil pl&? "t )as a primary listin- on t)e "ris) ,to&# %'&)an-e an sin&e t)e 6 April 2>1> is also liste on t)e 2on on ,to&# %'&)an-e? "ts &orporate )ea quarters are in *ubai? 5;4 "n 1<<< t)e %mirates 0ational Oil !ompany 6%0O!7 be&ame t)e major s)are)ol er =)en it a&533 5!)ar-es in "raq5s 1ur istan &ause *0O to sli e into t)e re 5: )kurd-net, 23 Au-ust 2>12? 53; 5*0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel 5: Ira' %aily /imes, 15 0ovember 2>11? 53< 52>1> Annual Report5: %*0 International, retrieve 3> 0ovember 2>11? 5;> 5*0O "nternational Taps A itional Oil in 1ur istan5: %*0 International, 6 0ovember 2>12? 5;1 5*0O to Boost !apa&ity at "raqMs Ta=#e Oil $iel 5: Ira' %aily /imes, 15 0ovember 2>11? 5;2 52>1> Annual Report5: %*0 International, retrieve 3> 0ovember 2>11? 5;3 5Assets in 1ur istan5: %*0 International, retrieve 14 0ovember 2>12? 5;4 5*ra-on Oil At A .lan&e5: %ragon 0il: retrieve 5 *e&ember 2>12?

1>6

quire 6<?4 per&ent of s)ares: an in t)e same year t)e )ea offi&e =as move to *ubai?5;5 *ra-on5s prin&ipal pro u&in- asset is in t)e !)ele#en &ontra&t area in offs)ore Tur#menistan? "t also )as operations in offs)ore Tunisia: "raq5;4 an in *e&ember 2>12 =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 &on ensate: 1?5 trillion &ubi& feet 6t&f7 of -as reserves an 1?4 t&f of -as resour&es?5;4

Dra5on Oil operations in Iraq

#istory
*ra-on Oil investe in "raq for t)e first time in 2>12?

Activities and contracts

&lock ' "n 2>12 *ra-on 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=ar e in "raq5s fourt) li&ensin- roun ? Ot)er partners in t)e &onsortium =ere 1u=ait %ner-y !ompany 64> per&ent7 an Tur#is) T(AO 63> per&ent7? A&&or in- to t)e +15s 4inancial /imes: t)is move =as part of *ra-on5s strate-y to in&rease its e'ploration base: =)i&) is &on&entrate in t)e !aspian re-ion: =it) !%O Ab ul Baleel al 1)alifa &ommentin- t)at Ientry into "raq )as been un er &onsi eration for some time an so represents a strate-i& move for *ra-onK? 5;3 .eolo-ists believe t)at Blo&# <: a=ar e to t)e &onsortium: &oul in&lu e part of t)e lar-e AEa e-an oil fiel in nei-)bourin- "ran?5;;

+ni
Type Tra e $oun e Cea quarters (ubli& 2imite !ompany B"TA%0" 09,%A%0" 1<53 Rome: "taly

5;5 5!ompany Overvie=A *ra-on Oil5 !ig#one: retrieve 5 *e&ember 2>12? 5;6 5*ra-on Oil &onsortium =ins t=o blo&#s in Af-)an ten er5: Proactive Investors: 5 *e&ember 2>12? 5;3 5*ra-on &onsortium =ins "raq oil fiel s bi 5: 4inancial /imes: 4 Bune 2>12? 5;; 5*ra-on Oil =ins e'ploration ri-)ts in "raq5: /he *ational: 31 /ay 2>12?

1>3

1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite

Roberto (oli 6!)airman7: (aolo ,&aroni 6!%O7 Y1><?6 billion 6appro'? +, G144?3 billion7: 2>11?5;< Y3?; billion 6appro'? +, G1>?3 billion7: 2>11?5;< [5?3V Y142?< billion 6appro'? +, G1;;?< billion7: en 2>11?5;< Y6>?4 billion 6appro'? +, G3<?; billion7: en 2>11?5;< 3<:>>> 62>1175;< ===?eni?it

0lobal snapshot
%ni is one of "talyMs lar-est &ompanies an t)e =orl s nineteent) lar-est oil &ompany by pro u&tion in 2>12?5<> "t operates in t)e oil an natural -as: petro&)emi&als: an oil fiel servi&es in ustries: an )as e'pan e into po=er -eneration? T)e "talian -overnment )ol s a s)are of more t)an 3> per&ent in t)e &ompany 5<1: =)i&) operate in more t)an 3> &ountries =orl =i e as of 2>11?5<2 At t)e en of 2>11 %ni )a estimate net proven reserves of 3?>< billion barrels of oil equivalent 6boe7:5<3 an in 2>12 t)e &ompany =as pro u&in- 2?2 million barrels per ay 6bp 7 -lobally?5<4

+ni operations in Iraq

#istory
%ni be-an &arryin- out en-ineerin- stu ies in various oilfiel s on be)alf of t)e "raqi /inistry of Oil in t)e 1<;>s? "n 1<<2 t)e Oil /inistry si-ne pro u&tion s)arin- a-reements 6(,As7 =it) several international oil &ompanies 6"O!s7 to evelop oilfiel s in t)e &ountry? %ni ne-otiate a (,A for t)e 0asiriya) oilfiel an in 1<<3 si-ne a memoran um of un erstan in- 6/o+7 re-ar in- t)e fiel N but t)is a-reement =as never follo=e t)rou-) ue to +0 san&tions impose on t)e &ountry? 5<5 %ni be-an operatin- in
5;< 5Annual Report 2>115: )ni, 2>11? 5<> 5T)e 4orl 5s Bi--est Oil !ompanies5: 4orbes: 16 Buly 2>12? 5<1 5%ni ,pA !ompany (rofile5? .ahoo 4inance: retrieve 4 O&tober 2>11? 5<2 5%0" ,(A5? Bloomberg Business "eek : retrieve 4 O&tober 2>11? 5<3 5Oil an 0atural .as Reserves5: )ni: retrieve 1; *e&ember 2>12? 5<4 5T)e 4orl 5s Bi--est Oil !ompanies5: 4orbes: 16 Buly 2>12? 5<5 5"raqA %'ploration an (ro u&tion5: )ni: retrieve < *e&ember 2>11

1>;

"raq on&e a-ain =)en a=ar e a servi&e &ontra&t for t)e @ubair eposit urin- t)e 2>>< bi in- roun s: follo=in- ,a am Cussein5s fall from po=er in 2>>3? 5<6 "n Au-ust 2>12: %ni !%O (aolo ,&aroni sai t)e &ompany i not plan to &ompromise its business in "raq by ma#in- ener-y eals =it) t)e &ountry5s semi-autonomous 1uristan re-ion?5<3 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 be-an operations in t)e &ountry: an t)at t)e -overnment in Ba-) a s)oul &onsi er =)y some -lobal &ompanies are -oin- to 1ur istan? IOur a renaline 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 a e t)at %ni5s issues =it) "raq are its )i-) levels of bureau&ra&y: limite ener-y infrastru&ture an t)e politi&al situation =it) t)e 1ur istan re-ion: =)i&) follo=s its o=n poli&y =)en it &omes to )y ro&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&lu in- O&&i ental (etroleum an 1o-as =)i&) =on t)e &ontra&t to evelop @ubair? %ni )ol s a 32?;1 per&ent sta#e: =)ile O&&i ental )ol s 23?44 per&ent: 1o-as 1;?35 per&ent an "raq5s state-run /aysan Oil !ompany t)e remainin- 25 per&ent? 6>> (ro u&tion at t)e @ubair fiel in&rease from 1;3:>>> barrels per ay 6bp 7 to more t)an 2>1:>>> bp in 2>1>?6>1 "n 0ovember 2>11 %ni si-ne a preliminary a-reement for a +, G24> million proje&t to rill 22 oil =ells an more t)an ouble pro u&tion at @ubair: pen in- approval from t)e "raqi Oil /inistry? 6>2 @ubair =as pumpin- oil at an avera-e rate of 23>:>>> bp in Au-ust 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 refun able five-year loan: instea of payin- a si-nature bonus as =as t)e &ase in ot)er eals ma e in t)e se&on li&ensin- roun in *e&ember 2>><?6>> *evelopment of @ubair pus)e up %ni5s estimates for -lobal investment to appro'imately +, G32 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) tar-et pro u&tion e'5<6 5%ni a=ar e t)e li&ense for t)e @ubair -iant fiel in "raq5: )ni : retrieve 15 0ovember 2>12? 5<3 5%ni )as no plans for 1ur istan oil ealsA !%O5: !euters: 2> Au-ust 2>12? 5<; 5%ni5s !%OA %nt)usiasm 4anin- for 5Bureau&rati&5 "raq5: "all Street Journal: 31 O&tober 2>12? 5<< 5@ubair5 Ira' )nergy: retrieve 14 0ovember 2>12? 6>> 5%ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel 5: "all Street Journal: 25 Banuary 2>1>? 6>1 5%0" &)ief meets "raq5s prime minister5: UPI: 23 ,eptember 2>11? 6>2 5%ni ,i-ns G24> /illion "raq Oil-4ells A-reement: Offi&ial ,ays5: Bloomberg: 3 0ovember 2>11? 6>3 5%ni a=ar s G35<m pipeline &ontra&t at @ubair5: Arabian0iland as-com: 1; ,eptember 2>12? 6>4 5%ni .ains /omentum in "ra5:q 6acks Investment !esearch: 26 /ay 2>1>?

1><

pe&te to be pro-ressively rea&)e by 2>16 an maintaine for seven years t)ereafter?6>5 T)e eal )as t)e potential to be e'ten e to 25 years an t)e &onsortium plans to in &rease t)e fiel 5s pro u&tion to 1?2 million bp ? 6>> %ni )a ori-inally propose a remuneration fee of over G4 a barrel: but a-ree to a&&ept G2 a barrel after B( a&&epte t)e same for t)e Rumaila fiel in 0ovember 2>><? A 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- bi in- roun for evelopment of t)e 0asiriya) fiel : a&&or in- to UPI?6>1

+##on*obil
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et in&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite (ubli& 2imite !ompany 09,%AZO/ 1<<< Te'as: +,A Re' Tillerson 6!)airman an !%O7 +, G4;6?4 billion 62>1176>3 +, G41?1 billion 62>1176>3 [34?;V6>3 +,G 34< billion 6en 2>1176>3 +,G 154?4 billion 6en 2>1176>3 ;2:1>> 6en 2>1176>3 ===?%''on/obil?&om

0lobal snapshot
"n 2>12 %''on/obil toppe t)e $ortune 5>> list of t)e lar-est Ameri&an &orporations ran#e by revenue?6>; "t be-an life as t)e ,tan ar 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&en ants of Bo)n *?
6>5 5%ni !onsortium to Re evelop @ubair $iel in "raq5: !ig#one *e&s : 22 Banuary 2>1>? 6>6 54)y Oil /ajors Are !omin- Ba&# to "raq5: Business "eek : 4 0ovember 2>><? 6>3 52>11 ,ummary Annual Report5: )55on(obil, 2>11? 6>; 5$ortune 5>>A %''on/obil5: C** (oney: retrieve 1; *e&ember 2>12?

11>

Ro&#efeller5s ,tan ar Oil !ompany: %''on an /obil? 6>< T)e &ompany )as several ivisions an )un re s of affiliates =it) names in&lu in- %''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 6boe7611 an avera-e -lobal net pro u&tion over 2>11 =as 4?51 million boe per ay?6>3 "n 2>>;: on t)e ba&# of soarin- -lobal oil pri&es: %''on/obil be&ame t)e =orl 5s most valuable firm =)en s)ares soare by over 4> per&ent in a year? 612 "n 2>1> t)ey a&quire ZTO %ner-y: a lea in- eveloper of un&onventional resour&es in&lu in- s)ale oil an s)ale -as: =)i&) requires a van&e rillin- te&)niques? 613 "n Au-ust 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?35 per&ent s)are 6)el in t=o equal parts by t)e t)en-separate &ompanies of %''on an /obil7 in t)e "raq (etroleum !om pany 6"(!7 alon- =it) Total: ,)ell an B(? 614 %''on an t)e ot)er forei-n oil majors5 assets in "raq =ere ta#en over by t)e "raq 0ational Oil !ompany 6"0O!7 after t)ey =ere nationalise by "raq5s BaMat)ist -overnment in Bune 1<32?615 %''on/obil restarte operations in "raq in 2>>< after =innin- a &ontra&t: as part of a &onsortium: to re)abilitate an re evelop t)e 4est Furna ()ase 1 fiel in sout)ern "raq?616 Co=ever later in 0ovember 2>11 t)e &ompany si-ne &ontra&ts for si' e'ploration blo&#s =it) t)e 1ur istan Re-ional .overnment 61R.7? T)e "raqi &entral -overnment in Ba-) a &laims all &ontra&ts =it) t)e 1R. are ille-itimate: 613 an as of O&tober 2>12 %''on/obil =as attemptin- to sell its sta#e in 4est Furna ()ase 1 as it prepare to start rillin- in 1ur istan?61; %''on5s move into t)e 1ur istan re-ion )as broa -eopoliti&al impli&ations: a&&or into t)e Petroleum %&onomist: an 1ur is) (resi ent /assou BarEani &ompare %''on5s investment in t)e re-ion 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 1R. an t)e
6>< 5Our Cistory5: )55on(obil: retrieve 3 O&tober 2>11? 61> 5%''on/obil !orporate (rofile5: !euters: retrieve 3 O&tober 2>11? 611 5%''on /obil &lin&)es Ar&ti& oil eal =it) Rosneft5: "all Street Journal: 23 $ebruary 2>12? 612 5T)e a-e of oil5: /he )conomist: 24 $ebruary 2>>5? 613 5%''on /obil to buy ZTO %ner-y in bi- +?,? -as bet5: !euters: 14 *e&ember 2>><? 614 5Oil !ompanies Col *o=n (ro u&tion in "raq5: lobal Policy, retrieve 3> Banuary 2>13? 615 5"raq Openin- to B(: %''on /obil: ,)ell for $irst Time ,in&e 1<325: Bloomberg: 3 /ar&) 2>1>? 616 5Our operations in "raq5: )55on(obil Ira': retrieve 15 0ovember 2>12? 613 5%''on si-ns 1ur e'ploration &ontra&ts5: 4inancial /imes: 1> 0ovember 2>11? 61; 5%''on 0ears ,ale of ,out) "raq ,ta#e5: "all Street Journal: 1; O&tober 2>12? 61< 54ill "raq be t)e ne't oil superpo=erH5: 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 be-in =or#in- in t)e ispute areas it =oul be &onsi ere Ia e&laration of =arI? A&&or in- to t)e report %''on5s &ontra&ts are t)e most &ontroversial of t)ose si-ne =it) t)e 1ur s 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 e -es of "raqi 1ur istanMs interpretation of its territory?62>

Activities and contracts

West urna Phase * "n 2>>< t)e &ompany forme part of a &onsortium alon-si e ,)ell =)i&) =on t)e &on tra&t to evelop 4est Furna ()ase 1: a fiel =)i&) )ol s )ol s ;?3 billion barrels 6bbl7 in proven oil reserves:621 t)us ensurin- t)eir position as one of t)e lar-est players in post=ar "raq?622 T)is a-reement =as formalise in Banuary 2>1> =)en %''on/obil "raq 2imite : an affiliate of %''on/obil: si-ne an a-reement =it) t)e "raqi /inistry of Oil? T)e a-reement esi-nate %''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 6O%!7 )ol in- a 25 per&ent interest: an ,)ell )ol in- a 15 per&ent interest? 623 %''on/obil5s si-nin- in 0ovember 2>11 of e'ploration &ontra&ts =it) t)e 1R.: =)i&) t)e -overnment in Ba-) a &onsi ers ille-al: 624 put its fiel evelopment &ontra&t at 4est Furna ()ase 1 at ris#: sai Ab ul /a) y al-Amee i: )ea of "raq5s (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7? Al-Amee i tol %o& Jones *e&s&ires t)at %''on &oul be repla&e at 4est Furna 1 by ,)ell: =)i&) )ol s a minority 615 per&ent7 interest in t)e evelopment &ontra&t: or potentially any ot)er &ompany? "n t)e aftermat) of t)e 1R. &ontra&t si-nin- t)e "raqi -overnment also &onsi ere imposinsan&tions on %''on/obil: a&&or in- to *eputy (rime /inister for %ner-y Cussein ,)a)ristani: t)ou-) it =as not &lear un er =)at le-al aut)ority it mi-)t o so? 625 !euters reporte in 0ovember 2>12 t)at t)e &ompany =as in a van&e sta-es of tal#s to sell its sta#e in 4est Furna ()ase 1: to enable it to fo&us on its eal for e'ploration blo&#s in 1ur istan: 626? ,)a)ristani tol Ira' 0il !e1ort t)at a ea line of t)e en of 2>12 )a been set to &on&lu e t)e eal: )o=ever transfer of operations =as li#ely to ta#e lon-er?623 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 un er t)e best of &ir&umstan&es: an t)at t)e G1?<> li&ense fee =oul barely be enou-) to &over t)e &ompany5s &osts? 62;

62> 5"n "raq: %''on oil eal foments tal# of &ivil =ar5: "ashington Post: 1; *e&ember 2>12? 621 5%''on !onsortium O1s "raq !ontra&t !)an-es5: !ig#one: Banuary 1<: 2>1>? 622 5%''on/obil =ins G5>bn &ontra&t5: /he uardian: 5 0ovember 2>><? 623 5%''on/obil ,i-ns A-reement =it) "raq5: Business "ire, 25 Banuary 2>1>? 624 5%''on may fa&e san&tions from 1ur istan eal5: /he lobe and (ail 22 0ovember 2>11? 625 5%''on may fa&e "raq san&tions: lose 4est Furna5: Arabian0iland as-com 22 0ovember 2>11? 626 5+(*AT% 3-%''on to pi&# 4?Furna buyer soon -"raq5s ,)a)ristani5: !euters: 14 0ovember 2>12? 623 5F8AA Cussain al-,)a)ristani5: Ira' 0il !e1ort: 1; *e&ember 2>12? 62; 5%''on 0ears ,ale of ,out) "raq ,ta#e5: "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 si-n an oil an -as e'plor ation &ontra&t =it) t)e 1ur istan Re-ional .overnment 61R.7: 62< in a eal t)at in&lu es si' e'ploration a-reements?625 T)e si' blo&#s in t)e &ontra&t in&lu e Bas)iqa an al-Fus): lo&ate on t)e sout)-=estern bor er of 1R.-&ontrolle territoryN Arbat %ast: lo&ate in t)e @a-ros /ountain area near t)e "ranian bor erN Bet=ata an (irmam: nort)-east of %rbilN an Fara Canjeer: =)i&) spans t)e bor er bet=een t)e 1R. an ispute areas in 1ir#u#?63> Before %''on/obil ma e t)is move: lar-e international oil &ompanies 6"O!s7 )a refraine from si-nin- eals =it) t)e 1R.631 be&ause: as of O&tober 2>12: t)e 1R. remaine 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&lu e in t)e %''on/obil-1R. &ontra&ts are in areas ispute by t)e 1R. an Ba-) a ? 62; T)e 4inancial /imes =rote at t)e time of t)e si-nin- t)at t)e eal &oul prove a &atalyst for oil evelopment in 1ur istan: 632 an in ee : as of 0ovember 2>12 several firms - Total?: !)evron an .aEprom - )a floute Ba-)a 5s =is)es an si-ne &ontra&ts =it) t)e 1R.?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 1ur istan so far? Over t)e &ourse of t)e &ontra&ts: %''on &ommitte to a &umulative G5>> million =or# plan: =)i&) in&lu es rillin- five e'ploration =ells in at least five of t)e si' blo&#s: an t=oimensional 62*7 seismi& testin- in t)e four blo&#s t)at )ave yet to un er-o t)e pro&ess? T)e Bas)iqa an al-Fus) )a un er-one 2-* seismi& testin- before %''on too# &ontrol: a&&or in- 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 1R.: t)e "raqi /inistry of Oil e'&lu e %''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 Ab ul /a) y al-Amee i of t)e (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*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 6"O!s7 =it) &ontra&ts in sout)ern "raqi oilfiel s? 636 T)e =ater inje&tion proje&t aims to provi e =ater to maintain reservoir pressure: an t)ereby improve oil re&overy: in fiel s su&) as Ru62< 5%''on5s 1ur istan move set to tri--er raft of oil mer-ers5: /elegra1h 13 0ovember 2>11? 63> 5%''on to start rillin- in ispute 1ur is) blo&#s5: Ira' 0il !e1ort: 1; O&tober 2>12? 631 5"raq !riti&iEes %''on /obil on 1ur istan Oil (ursuits5: *e& .ork /imes 12 0ovember 2>11? 632 5%''on si-ns 1ur e'ploration &ontra&ts5: 4inancial /imes: 1> 0ovember 2>11? 633 5"raqi .overnment an 1ur istan at O s Over Oil (ro u&tion5: *e& .ork /imes: 14 0ovember 2>12? 634 5%''on to start rillin- in ispute 1ur is) blo&#s5: Ira' 0il !e1ort: 1; O&tober 2>12? 635 5"raq !onfirms 4t) Oil Bi Roun $or /ayN %''on %'&lu e 5: A3/raders 1< April 2>12? 636 5%''on/obil to lea "raq =ater inje&tion proje&t5: Bloomberg Business "eek: 4 /ar&) 2>1>?

113

maila: 4est 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 a-reement in O&tober 2>11 to buil t)e plant?633 Al-Amee i 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 fiel s: =it) t)e proje&t ta#in- t=o to t)ree years: rampin- up as t)e sout) ern oil fiel s in&rease pro u&tion?63; But %''on/obil =as =as remove from t)e proje&t in $ebruary 2>12? *)iya Bafaar: )ea of t)e state-run ,out) Oil !ompany 6,O!7 sai t)e removal of %''on from lea ers)ip of t)e proje&t =as not &onne&te =it) t)e &ompany5s 1ur is) eals: an instea blame poor &oor ination an proje&t e&onomi&s submitte by %''on: a&&or in- to !euters?63< "n O&tober 2>12 Bloomber- reporte t)at t)e ,O! )a a=ar e !C2/ Cill a G13> million &onsultan&y &ontra&t to ta#e part in t)e proje&t: effe&tively repla&in- %''on/obil?64> Baafar sai t)e ,out) Oil !ompany =oul be t)e lea er of t)e proje&t? 641

0a@prom
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et "n&ome Total assets %mployees 4ebsite (ubli& 2imite !ompany RT,A.A@( 2,%AO.@* 1<;<642 /os&o=: Russia Di&tor @ub#ov 6!)airman7: Ale'ei /iller 6Di&e-!)airman an !%O7 +, G113?6 billion 62>117642 +, G31?3 billion 62>117642 +, G3>2?6 6en 2>117642 3<3:>>> 62>127642 ===?-aEprom?&om

0lobal snapshot
/os&o=-base .aEprom is primarily en-a-e in t)e operation of -as pipeline systems an -as supply to %uropean &ountries but is also involve in oil pro u&tion an refinin- a&tivities? "n 2>12 .aEprom =as t)e se&on lar-est oil &ompany in t)e =orl by
633 5"raq: Oil /ajors A-ree To Buil Oil $iel 4ater "nje&tion (lant5: "all Street Journal: 1< O&tober 2>11? 63; 5%''on ,pear)ea s "raqi 4ater-"nje&tion (roje&t5: !ig#one quotin- %o& Jones: 1> April 2>1>? 63< 5"raq see#s firms to mana-e oilfiel =ater inje&tion5: !euters: 14 /ay 2>12? 64> 5"raq A=ar s !C2/ 4ater-"nje&tion Oil (roje&t: Repla&in- %''on5: Bloomberg: 1> O&tober 2>12? 641 5"raq &)ooses =ater &ontra&tor5: Al Ba&aba: 11 O&tober 2>12? 642 5.aEprom5: 4orbes: retrieve 1< *e&ember 2>12?

114

pro u&tion643 an t)e =orl 5s fifteent) lar-est publi&ly liste &ompany? 642 "t =as also t)e =orl 5s lar-est -as pro u&er: =it) avera-e aily pro u&tion stan in- at <?3 million barrels of oil equivalent 6boe7 per ay? 643 Dia its subsi iaries an affiliates: t)e &ompany )as operations establis)e in t)e +1: ,erbia: +Ebe#istan: 1yr-yEstan: Taji#istan: Dietnam: "n ia: "raq: Al-eria: 2ibya: %quatorial .uinea: Bolivia an DeneEuela: amonot)ers?644 Russia5s si-nifi&ant s)are of t)e =orl 5s -as ma#es it t)e an important asset for t)e &ountry an t)e )conomist ma-aEine su--ests t)at t)is ma#es .aEprom ar-uably its most important &ompany?645 $oun e in 1<;<: .aEprom -re= out of t)e +,,R5s .as "nustry /inistry an =as part-privatise from 1<<3 =it) t)e lar-e-s&ale sale of state as sets in post-,oviet Russia? T)e Russian .overnment )ol s a &ontrollin- sta#e of just over 5> per&ent an former Russian presi ent *mitri /e ve ev previously o&&upie t)e post of .aEprom Boar !)airman? 646 "n total t)e &ompany operates aroun 3> fullyo=ne subsi iaries: in&lu in- one =)ose s)are)ol er &ommittee !)airman is former .erman !)an&ellor .er)ar ,&)ro er? "n a ition .aEprom also o=ns a ban#: ne=spapers: ra io stations: television stations: film stu ios: &inemas an real estate? 643 .aEprom a&&ounts for 1; per&ent of t)e =orl 5s -as reserves: 3> per&ent of Russian -as reserves an 15 per&ent of -lobal -as pro u&tion? "n 2>11 .aEprom also presi e over 161:3>> #ilometres 6#m7 of -as pipelines: t)e lar-est -as transportation system in t)e =orl ?64;

0a@prom operations in Iraq

#istory
T)e be-innin- of .aEprom5s =or# in "raq =as mar#e by t)e &ontra&ts si-ne in 2>><?

Activities and contracts

&adra "n 2>><: urin- "raq5s se&on post-=ar li&ensin- roun : .aEprom parti&ipate in a &onsortium also involvin- 1o-as: (etronas: an T(AO =)i&) =on a &ontra&t to evelop t)e Ba ra oilfiel in sout)-east "raq? .aEprom )ol s a 4> per&ent sta#e in t)e &onsortium: =it) 1o-as )ol in- 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 (ro u&tion of .aEprom 0eft: t)e oil arm of .aEprom: sai t)at t)e &ompany =oul invest G2 billion in evelopin- Ba ra an t)at t)ey e'pe&te to pump t)e first
643 5T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: 16 Buly 2>12? 644 5.aEprom OAO5: !euters: retrieve 1> O&tober 2>11? 645 5Russia5s ener-eti& eni-ma5: /he )conomist: 6 O&tober 2>>5? 646 5.aEprom reports quarterly profits of G16bn5: /he uardian: 3> Au-ust 2>11? 643 5"n T)rall to .asA T)e !ity 4)ere .aEprom "s 1in-5: S1iegel 0nline: 2 /ar&) 2>11? 64; 5Annual Report 2>1>5: a#1rom: retrieve 1> O&tober 2>11? 64< 5"raq si-ns eal =it) .aEprom -roup for Ba ra)5: !euters: 2; Banuary 2>1>?

115

&ru e 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 Ba ra eposit: &arrie out by t)e "raqi Oil %'ploration !ompany 6O%!7? T)e survey =as inten e to -ive a better un erstan in- 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 Ba ra an t)at t)ey e'pe&te to start &ommer&ial pro u&tion of 15:>>> barrels per ay 6bp 7 at t)e fiel in Au-ust 2>13?651 0armian and Shakal (Kurdistan) "n Au-ust 2>12 .aEprom 0eft be&ame t)e t)ir oil major 6follo=in- moves by %''on/obil an Total7 to &on&lu e eals =it) t)e semi-autonomous 1ur istan Re-ional .overnment 61R.7 =)en it si-ne t=o &ontra&ts for t=o of t)e sout)ernmost e'ploration blo&#s in t)e re-ion: t)e .armian an ,)a#al blo&#s? Ira' 0il !e1ort &onsi ers t)at majors su&) as .aEprom =ere embol ene by %''on5s move: =)en it si-ne &ontra&ts ire&tly =it) t)e 1R.: &onsi ere ille-al by t)e &entral -overnment: puttin- at ris# substantial pro u&in- assets in t)e ,out)? $urt)ermore t)e ,)a#al blo&# e'ten s into areas t)at are internationally re&o-nise as ispute territories bet=een t)e &entral an re-ional aut)orities? At t)e .armian blo&#: .aEprom too# a 4> per&ent sta#e: =)ile !ana ian &ompany 4estern@a-ros an t)e 1R. retaine sta#es of 4> per&ent an 2> per&ent respe&tively? On&e t)e e'ploration p)ase is &omplete .aEprom =ill be&ome t)e operator? At ,)a#al .aEprom be&ame t)e operator =it) an ;> per&ent sta#e an t)e 1R. retaine its 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 1ur istan 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 %ner-y Cussein ,)a)ristani &ommente t)at t)e &ompany =ill be for&e to e&i e bet=een t)eir &ontra&ts in t)e nort) an t)e sout): just as %''on/obil )a ? 654

0enel +ner5y
Type Tra e as $oun e Cea quarters (ubli& 2imite !ompany 2,%A.%02 2>11 An#ara: Tur#ey

65> 5.aEprom 0eft &ompletes seismi& survey in "raq5: a#1rom *eft: 13 /ay 2>11? 651 5.aEprom 0eft to be-in oil output in "raq in 2>135: !euters: 25 0ovember 2>11? 652 5.aEprom ma#es 1ur istan entran&e: ris#in- Ba ra5: Ira' 0il !e1ort: 25 0ovember 2>11 653 5"raq pressures Russia5s .aEprom to quit 1ur istan5: BBC: < 0ovember 2>12? 654 5F8AA Cussain al-,)a)ristani5: Ira' 0il !e1ort: 1; *e&ember 2>12?

116

1ey (eople Revenue 0et "n&ome Total Assets Total %quity %mployees 4ebsite

Tony Cay=ar 6!%O7: /e)met ,epil 6(resi ent7655 +, G24 million 62>117656 +, G2?6 million 62>117656 +, G4 billion 6en 2>117656 +, G3?;4 billion 6en 2>117656 Over 5>> 62>117653 ===?-enelener-y?&om

0lobal snapshot
.enel %ner-y pl& is in&orporate in Bersey an )as offi&es in t)e +1: Tur#ey an 1uristan? "t =as forme follo=in- t)e mer-er of Dallares (2! an .enel %ner-y "nternational 2imite in 0ovember 2>11? T)e &ompany5s primary assets are oil an -as li&enses lo&ate in t)e 1ur istan re-ion of "raq?65; T)e &ompany en-a-es in e'ploration: appraisal: evelopment an pro u&tion of oil fiel s an )as over 5>> ire&t an se&on e employees lo&ate in t)e 1ur istan re-ion an An#ara?65; .enel5s !%O is Tony Cay=ar : former )ea of Britis) B(? T)e &ompany5s presi ent /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 un erstan t)e re-ion?K65< At t)e en of 2>11 .enel )el 412 million barrels of 2( reserves an )a an avera-e aily pro u&tion over t)e year of 42:>>> barrels per ay 6bp 7? 66>

0enel operations in Iraq

#istory
Before t)e mer-er =it) Dallares in 2>11: .enel %ner-y =as a private Tur#is) &ompany un er t)e &ontrol of /e)me ,epil? "n 2>>2: =)ile =or#in- as a &ontra&tor in 1uristan ,epil =as approa&)e by Balal Talabani: 1ur is) politi&ian an later presi ent of "raq: about evelopin- t)e Taq Taq oil fiel ? ,epil be-an rillin- at Taq Taq an also too# sta#es in ot)er 1ur is) fiel s? 65< T)e (ro u&tion ,)arin- !ontra&t 6(,!7 for e'ploitation of t)e (,! =as reinstate an si-ne by t)e 1R. an .enel %ner-y "nterna655 5/essa-e5 enel )nergy, retrieve 1< *e&ember 2>11 656 5Annual Report an A&&ounts 2>115: enel )nergy, 2>11? 653 5About +s5 enel )nergy: 22 0ovember 2>11? 65; 5About +s5 enel )nergy: retrieve 1< *e&ember 2>11 65< 5Tony Cay=ar .ets Cis 2ife Ba&#5 *e& .ork /imes: 1 ,eptember 2>12? 66> 5Annual Report an A&&ounts 2>115: enel )nergy, 2>11?

113

tional 2imite in 2>>4?661 T)e mer-er an e'pansion follo=e an by 2>12 .enel &ame to be t)e lea in- oil prou&er in 1ur istan: pro u&in- 4>:>>> barrels per ay 6bp 7 in 2>12? 662 T)e &ompany =as also e'pe&te to brin- on stream 4 billion &ubi& metres 6b&m7 per year of -as from its 1ur istan fiel s by 2>15? 663 Co=ever e'portin- t)e oil pro u&e )as &ause problems be&ause of spora i& isputes bet=een t)e 1ur s an Ba-) a over pipelines? A&&or in- to Tony Bu&#in-)am: foun er of Cerita-e Oil: be&ause .enel are so )eavily i entifie =it) t)e 1R.5s ener-y poli&y as it is: =)en it ma#es eals =it) t)e 1R. it oes not &onstitute su&) a Islap in t)e fa&eI to Ba-) a as t)ose si-ne 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 fiel s in 1ur istan? "t )ol s a 44 per&ent =or#ininterest in t)e Taq Taq fiel 664 6pro u&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>><?664 As of 2>12 t)ese fiel s )a estimate proven an probable 62(7 reserves of 1?4 billion barrels 6bbl7 of oil an probable an possible reserves of 1?< billion barrels of oil equivalent? T)e &ompany is tar-etin- to a&)ieve total oil output of 14>:>>> barrels per ay 6bp 7 from bot) fiel s by 2>14? 666 &er &ahr, %ohuk, Miran and 1hi Surkh (Kurdistan) .enel5s 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>><?664 "n Au-ust 2>12 .enel announ&e a series of a&quisition eals amountin- to aroun +, G;6> million =it) t)e aim of stren-t)en in- its position in 1ur istan? 663 T)e &ompany ma e a eal =it) Britis) Cerita-e Oil to in&rease its sta#e in t)e /iran blo&# to 51 per&ent? 66; an analysts at *euts&)e Ban# su--este t)at t)e eal =oul eventually lea to it buyin- t)e remain er of Cerita-e5s interests in /iran?66< "n t)e same mont) .enel also a&quire an a itional 21 per&ent sta#e in t)e Bina Ba=i blo&# in t)e &entre of t)e re-ion from Ca=ier %ner-y? 63>
661 51R. /inistry of 0atural Resour&es (ro u&tion ,)arin- !ontra&ts5: +urdistan !egional overnment : retrieve 5 *e&ember 2>12? 662 5Tur#ey5s .enel %ner-y Ta#es .amble in "raq5: 0il Price: 23 Au-ust 2>12? 663 51ur istan eyes major role in Tur#is) -as mar#et5: Petroleum )conomist: 13 *e&ember 2>12? 664 5!ompany (rofile5: enel )nergy, retrieve 3> 0ovember 2>11? 665 5Tony Cay=ar moves into 1ur istan =it) .enel %ner-y as tensions rise5: /elegra1h, 13 0ovember 2>11? 666 5Operations - 1ur istan Re-ion5: enel )nergy: retrieve 5 *e&ember 2>12? 663 5Tony Cay=ar .ets Cis 2ife Ba&#5 *e& .ork /imes: 1 ,eptember 2>12? 66; 5Tur#ey5s .enel %ner-y Ta#es .amble in "raq5: 0il Price: 23 Au-ust 2>12? 66< 5Cerita-e re&eives G45>m .enel boost5 4inancial /imes: 21 Au-ust 2>12? 63> 5.enel %ner-y "n&reases ,ta#e in Bina Ba=i5: Ira' Business *e&s: 6 Au-ust 2>12?

11;

T)e oil pro u&e by .enel t)at &annot be e'porte -oes to 1ur is) refineries for a pri&e of about G6> per barrel: =ell belo= t)at a&)ieve on =orl mar#ets? Co=ever a&&or in- to t)e *e& .ork /imes as of 2>12 .enel =as still -eneratin- most of t)e &as) nee e to pay for its G2>>-G25>-million-a-year e'ploration an evelopment pro-ram in 1ur istan? "t =as also reporte to be sittin- on about G1 billion for a&quisitions? 663

6erita5e Oil
Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et "n&ome %mployees 4ebsite (ubli& 2imite !ompany 2,%ACO"2 1<<2631 Bersey /i&)ael Cibber 6!)airman7: Tony Bu&#in-)am 6!%O7 +, G< million 62>117632 6+, G66?< million7: 2>11633 13< 6en 2>117634 ===?)erita-eoilpl&?&om

0lobal snapshot
Cerita-e Oil is an oil an -as e'ploration an pro u&tion &ompany liste on t)e Toronto an 2on on sto&# e'&)an-es? T)e &ompany o=ns pro u&in- assets in Russia: e'ploration proje&ts in t)e 1ur istan re-ion of "raq: t)e *emo&rati& Republi& of !on-o: /alta: (a#istan: TanEania an /ali: as =ell as an investment in 2ibya?635 T)e &ompany =as foun e in 1<<2 an =as initially forme to )ol interests in offs)ore An-ola? "n 1<<3 it =as a=ar e interests in ons)ore !on-o an =ent on to is&over t)e /5Boun i $iel in 2>>1: =)i&) brou-)t substantial -ains? 633 A&&or in- to t)e +15s Inde1endent ne=spaper: Cerita-e )as a )istory of movin- early into unstable: oilri&) re-ions t)at pose si-nifi&ant personal an operational ris#s: su&) as +-an a an 1ur istan? T)e &ompany =as t)ou-)t to be t)e first forei-n oil &ompany to enter 2ibya after t)e 2>11 uprisin- =)en it announ&e it )a a&quire small Ben-)aEi-base servi&es &ompany ,a)ara for G1<?5 million in O&tober 2>11?636
631 5Annual Report 2>125: Heritage 0il, 2>12? 632 5Annual Report 2>125: Heritage 0il, 2>12? 633 52>1> Annual Report5: Heritage 0il: 2>11? 634 5Cerita-e Oil5: .ahoo@ 4inance: 2>11? 635 5About Cerita-e5: Heritage 0il: retrieve 22 *e&ember 2>11? 636 5Cerita-e plants +1 fla- in 2ibya =it) ta#eover of ,a)ara Oil5: Inde1endent: 5 O&tober 2>11? 2ibyan aut)orities later enie t)at t)e sale )a ta#en pla&e?

11<

6erita5e Oil operations in Iraq

#istory
Cerita-e5s a&tivity in "raq be-an in 2>>3: =)en it be&ame one of t)e first &ompanies to si-n a (ro u&tion ,)arin- !ontra&t 6(,!7 =it) t)e semi-autonomous 1ur istan Re-ional .overnment 61R.7?633

Activities and contracts

Miran (Kurdistan) Cerita-e entere into a (,! =it) t)e 1R. on 2 O&tober 2>>3 for t)e /iran Blo&# 63; in t)e sout) of 1ur istan? Cerita-e announ&e in April 2>>< t)at An-lo-Tur#is) .enel %ner-y )a entere t)e /iran Blo&# as a t)ir party parti&ipant: 63< )ol in- a 25 per&ent parti&ipatin- interest in t)e li&ense =)ile Cerita-e: t)e operator: )el t)e remainin- 35 per&ent?6;> Cerita-e announ&e in early 2>11 t)e is&overy of a lar-e -as fiel =it) t)e /iran 4est-2 =ell =)i&):6;1 &ontainin- up to 12?3 trillion &ubi& feet of -as: 6;2 it believes to be t)e lar-est -as fiel to be is&overe in "raq in t)e last 3> years? T)e &ompany )as a 35 per&ent =or#in- interest in t)e /iran Blo&#: t)ou-) t)e 1R. )ave a ba&#-in ri-)t 6=)ereby t)e 1R. &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 re u&e Cerita-eMs interest to 56?25 per&ent? T)e first e'port pro u&tion from t)e /iran Blo&# is tar-ete for 2>15 usinplanne re-ional infrastru&ture: a&&or in- to t)e &ompany5s 2>1> Annual Report? 6;1 Co=ever in Au-ust 2>12 Cerita-e move to sell some of its assets in t)e 1ur istan re-ion in or er to free up finan&es for a proje&t in 0i-eria? Cerita-e is ue to re&eive +, G156 million for transferrin- its 26 per&ent interest in t)e /iran -as fiel to .enel %ner-y: as =ell as a furt)er G2<4 million loan =)i&) it &an re eem t)rou-) t)e transfer of its remainin- 4< per&ent interest?6;3

6unt Oil
Type $oun e (rivate 1<346;4 633 5Operations - "raq5: Heritage 0il: retrieve 5 *e&ember 2>12? 63; 5Cerita-e 0otes 1R.5s T)ir (arty 0ominee in /iran 2i&ense5: !ig#one < April 2>><? 63< 5Operations - "raq5: Heritage 0il, retrieve 1 *e&ember 2>11? 6;> 5Cerita-e 0otes 1R.5s T)ir (arty 0ominee in /iran 2i&ense5: !ig#one, < April 2>><? 6;1 52>1> Annual Report5: Heritage 0il, retrieve 1 *e&ember 2>11? 6;2 5/ajor .as $iel $oun in 1ur istan5: +! !e1resentation in S1ain, 2; Banuary 2>11? 6;3 5Cerita-e re&eive G45> million .enel boost5: 4inancial /imes: 21 Au-ust 2>12? 6;4 5T)e Cunt $amily of !ompanies5: Hunt 0il: retrieve 2< /ar&) 2>12?

12>

Cea quarters 1ey (eople Revenue %mployees 4ebsite

*allas: Te'as 6+,76;4 Ray Cunt 6!%O76;5 +, G4 billion 62>1176;6 4:3>> 6en 2>1176;6 ===?)untoil?&om

0lobal snapshot
Cunt Oil =as foun e in 1<34: reporte ly =it) C?2? Cunt5s po#er =innin-s? 6;3 To-et)er =it) its subsi iaries t)e &ompany en-a-es in oil an -as e'ploration an pro u&tion in 0ort) Ameri&a: ,out) Ameri&a: %urope: Australia: an t)e /i le %ast? "t also en-a-es in t)e &onstru&tion an operation of liquefie natural -as 620.7 proje&ts in 9emen an (eru?6;; T)e &ompany is )ea quartere in *allas: Te'as an operates as a subsi iary of Cunt !onsoli ate "n&? "n 2>11 $orbes ma-aEine ran#e Cunt !onsoli ate in <>t) pla&e on t)eir annual list of Ameri&a5s lar-est private &ompanies? Cunt Oil is t)e umbrella &ompany for several subsi iaries: but )as no affiliation or o=ners)ip interest in Cunt (etroleum an its affiliate &ompanies: =)i&) ZTO %ner-y a&quire in 2>>;? 6;<

6unt Petroleum operations in Iraq

#istory
T)e &ontra&ts si-ne by Cunt in 2>>3 mar# t)e be-innin- of Cunt5s operations in "raq?

Activities and contracts

Ain Sifni (Kurdistan) T)e pro u&tion s)arin- &ontra&t 6(,!7 si-ne by Cunt in ,eptember 2>>3 =as t)e first to be si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7 sin&e t)e ena&tment of t)e Oil an .as 2a= of t)e 1ur istan Re-ion in Au-ust 2>>3? Cunt entere into t)e &ontra&t: =)i&) &overe petroleum e'ploration a&tivities in 1ur istan5s *o)u# area: =it) "mpulse %ner-y !orporation as its junior partner? 6<> 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 Buly 2>11: 2on6;5 5,ele&te Representatives5: Hunt 0il: retrieve 2< /ar&) 2>12? 6;6 5^<> Cunt !onsoli ate TCunt Oil5: 4orbes: retrieve 2< /ar&) 2>12? 6;3 5Cunt !onsoli ate "n&? !ompany (rofile5: .ahoo 4inance: retrieve 2< /ar&) 2>12? 6;; 5!ompany Overvie= of Cunt Oil !ompany5: Bloomberg: retrieve 2< /ar&) 2>12? 6;< 5^<> Cunt !onsoli ate TCunt Oil5: 4orbes: retrieve 2< /ar&) 2>12? 6<> 51R. si-ns oil an -as &ontra&t =it) +,-base Cunt Oil5: +! , Retrieve >; ,eptember 2>>3? 6<1 5Oil 8 .as J "nternational %8(5: 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 fiel 5s operator: retaine 6> per&ent an t)e 1R. a 2> per&ent sta#e in t)e fiel ? 6<2 2ea#e +, iplomati& &ables note t)at t)e +, -overnment is&oura-e &ompanies from si-nin- oil eals =it) t)e 1R. until "raq )a ena&te its re-ional )y ro&arbons la=? Co=ever a senior Cunt mana-er tol a +, offi&ial in %rbil t)at t)e area5s )i-) potential for oil pro u&tion Itrumpe I t)e ris#s an le-al ambi-uities asso&iate =it) its involvement in a ispute territory su&) as nort)ern 0ineve)? 6<3

Inpe#
Type Tra e as $oun e Cea quarters 1ey (eople 4ebsite (ubli& 2imite !ompany T9OA16>5 1<416<4 To#yo 6Bapan7 0ao#i 1uro a 6!)airman7: Tos)ia#i 1itamura 6(resi ent76<5 ===?inpe'?&o?jp

0lobal snapshot
To#yo-base "npe' 6"nternational (etroleum %'ploration !orporation7 is a )ol in&ompany establis)e t)rou-) t)e reor-anisation of "0(%Z !orp an Tei#o#u Oil? T)e &ompany mana-es subsi iaries t)at e'plore: pro u&e an sell oil an natural -as? 6<6 "n 2>12 "npe' )a over 3> proje&ts in 26 &ountries? T)is in&lu es proje&ts in "n onesia: Australia: AEerbaijan an "raq an )as a -ro=in- fo&us on 2iquefie 0atural .as 620.7?6<6

Operations in Iraq
History
"n 2>>; "npe' =as in&lu e on t)e list of 35 &ountries =)i&) pre-qualifie for t)e &ountry5s first li&ensin- roun t)e follo=in- year? 6<3 "n 2>1> "npe' =as part of a &onsortium of Bapanese firms =)i&) =ere ne-otiatin- 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 5Afren raises _113 million for 1ur istan a&quisitions5: Proactive Investors 2; Buly 2>11? 6<3 5Cunt Oil ,i-ns A-reement 4it) 1r- +n er 1r- Oil 2a=5: "ikileaks, 12 ,eptember 2>>3? 6<45 Cistory5 In1e5: retrieve 5 *e&ember 2>12? 6<55 "npe' !orp5 Bloomberg: retrieve 5 *e&ember 2>12? 6<65 !ompany (rofile5 In1e5: retrieve 5 *e&ember 2>12? 6<35 Oil /inistry Announ&es Fualifi&ation Results5: "ikileaks: 15 April 2>>;?

122

&on&lusion?6<6

Activities and contracts

&lock *2 "n "raq5s fourt) li&ensin- roun in 2>12: "npe' si-ne a eal to e'plore an area &over in- t)e re-ions of /ut)anna an *)i Far in ,out)ern "raq? T)eir partner in t)e eal =as Russian 2u#oil an to-et)er t)e t=o firms must invest at least G1>> million to e'plore a 5:5>> square-#ilometre blo&#: un er t)e terms of t)e &ontra&t? T)e a-ree remuneration fee =as G5?<< per barrel?6<;

>apan Petroleum +#ploration Company >ape#!

Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et in&ome V &)an-e on previous year Total Assets %mployees 4ebsite (ubli& 2imite !ompany T9OA1662 1<55 To#yo 6Bapan7 Osamu 4atanabe 6(resi entT!%O7 +, G2?4 billion 62>1176<< +, G12>?6 million 62>1176<< -44?2V6<< +,G 6?2 billion 6en 2>1176<< 1:32; 6en 2>1176<< ===?jape'?&o?jp

0lobal snapshot
Bape' is a To#yo-base oil &ompany establis)e as a private &ompany in 1<3> an tra e on t)e To#yo sto&# e'&)an-e sin&e 2>>3? 3>> T)e &ompany5s prin&ipal operatinareas are: omesti&ally: Co##ai o: A#ita: 9ama-ata an 0ii-ata in Bapan: an overseas: !ana a: t)e +nite ,tates: "ran: "raq: "n onesia: !)ina: t)e ()ilippines: Russia an 2ibya?3>1
6<;5 "raq seals oil e'ploration eal =it) 2u#oil: "npe'5: (iddle )ast 0nline: 3 0ovember 2>12? 6<< 5Annual Report 2>115: Ja1e5: retrieve 1< *e&ember 2>12? 3>> 5About Bape'5: Ja1e5: retrieve 1; *e&ember 2>12? 3>1 5Bape' $inan&ial Analysis Revie=5: Com1anies and (arkets, 4 $ebruary 2>1>?

123

T)e Bapanese -overnment o=ns a 34 per&ent s)are in Bape': =)i&) in 2>11 )a prove reserves of 232 million barrels of oil equivalent 6boe7?3>2 "n ,eptember 2>11 t)e Bapanese -overnment state it =as &onsi erin- sellin- its sta#es in Bape' in or er to use t)e fun s 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 ` 3>> billion in investments oil an -as-relate evelopments?3>3

>ape# operations in Iraq

#istory
Bape'Ms relations)ip =it) t)e "raqi /inistry of Oil ates ba&# to /ar&) 2>>5 =)en t)ey be-an to &on u&t evaluation stu ies of un evelope oil fiel s jointly =it) t)e /in istryMs en-ineers? ,in&e 2>>3 Bape' )as =or#e =it) more t)an 45> trainee en-ineers ispat&)e from t)e /inistry of Oil? "n 2>>; Bape' supplie 3* seismi& survey equipment an soft=are for t)e /inistryMs surveys of t)e .arraf oil fiel ? 3>4

Activities and contracts

0arraf To-et)er =it) /alaysian (etronas: Bape' si-ne a &ontra&t in 2>>< to e'plore an prou&e oil from t)e .arraf oil fiel ? T)e &onsortium is e'pe&te to invest up to G; billion in t)e fiel 3>5 an =ill be pai a remuneration fee of G1?4< a barrel un er t)e 2>-year lon- servi&e &ontra&t?3>6 Bape' =ill )ol a 3> per&ent sta#e: (etronas a 45 per&ent sta#e an "raqMs ,out) Oil !ompany 6,O!7 =ill )ol t)e remainin- 25 per&ent sta#e in t)e fiel ?3>3 "n $ebruary 2>11: !euters reporte t)at state-o=ne Bapan Oil: .as an /etals 0ational !orporation 6BO./%!7 =oul provi e about G1<; million of &apital to t)e evelopment of t)e .arraf oil fiel proje&t? "n return: BO./%! =oul ta#e a sta#e of less t)an 5> per &ent in Bape'5 =)olly o=ne subsi iary: 3>; Bape' .arraf 2imite ?3>< -

3>2 5Bape' !ompany (rofile5 :.ahoo 4inance: retrieve 25 *e&ember 2>11? 3>3 5Bapan .overnment /ulls ,ellin- ,ta#es "n "npe': Bape' $or Fua#e Re&onstru&tion - Report5: 4o5 Business : 6 ,eptember 2>11? 3>4 5Annual Report 2>>;5 Ja1e5, retrieve 25 *e&ember 2>11? 3>5 5"raqA (etronas an Bape' si-n eal for .)arraf oil fiel 5: )nergy1edia *e&s: Ban 1;: 2>1> 3>6 5"raq: (etronas: Bape' in .)araf oilfiel a&&or 5: /he Saudi a#ette, retrieve 25 *e&ember 2>11? 3>3 5BA(%Z: (etronas to evelop "raq oil fiel 5: A() Info, 2> Banuary 2>1>? 3>; 5Bapan5s BO./%! to invest in .)arraf Oilfiel 5: Ira' Business *e&s, 11 $ebruary 2>11? 3>< 5"nternational %'ploration an (ro u&tionA "raq5: Ja1e5, retrieve < Banuary 2>11?

124

8a@*unai0as 8*0!
Type Tra e as $oun e Cea quarters 1ey people %mployees 4ebsite ,tate-o=ne 1A,%AR*.@ 2,%A1/. 61/. %(7 2>>2 Astana: 1aEa#)stan 1iinov 2yaEEat 1etebaevi&) 6!)airman731> 3>:121 62>117311 ===?#m-?#E

0lobal snapshot
1aE/unai.as 61/.7 is 1>> per&ent o=ne by t)e -overnment of 1aEa#)stan t)rou-) t)e national =elfare fun ,amru#-1aEyna: an entity seen by !euters as an e'tension of t)e -overnment?312 "t is t)e o=ner of 44 ons)ore oil an -as fiel s in t)e /an-istau an Atyrau re-ions of 1aEa#)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 1aEa#)stan?313 T)e state strate-i& -oal of 1/. %( up to 2>2< is to be&ome one of t)e =orl 5s top 2> oil an -as &ompanies?314 One of t)e prin&ipal subsi iaries of 1/. is 1aE/unai.as %'ploration an (ro u&tion 61/. %(7: establis)e in 2>>4 follo=in- t)e mer-er of +Eenmunai-as B,! 6+/.7 an %mbamunai-as B,! 6%/.7? T)e &ompany5s s)ares are liste on t)e 1aEa#)stan ,to&# %'&)an-e 61A,%7 an its -lobal epositary re&eipts 6.*Rs7 on t)e 2on on ,to&# %'&)an-e 62,%7? 1/. %( is t)e 1aEa#)stan5s se&on lar-est oil pro u&er: )o=ever in 2>1> t)e Boar of *ire&tors approve t)e !ompany5s parti&ipation in several proje&ts outsi e 1aEa#)stan? T)ese in&lu e t)e 4)ite Bear proje&t in t)e 0ort) ,ea an a ten er to evelop t)e A##as fiel in "raq?314 A&&or in- to an analysis by !euters: 1/. )a a I)i-)ly levera-e I finan&ial profile in 2>12: =it) lar-e ebt ue to lar-e &apital e'pen itures to up-ra e refineries an t)e 1as)a-an fiel : in =)i&) it )as a 16?; per&ent sta#e? 312 At t)e en of 2>11 1/. %(5s proven oil reserves 61(7 stoo at 561 million barrels: =it) proven plus probable plus possible reserves at 1?<6 billion barrels 6bbl7? (ro u&tion over t)e year =as 5; million barrels: -ivin- an avera-e aily pro u&tion of 15;:<>4 barrels per ay 6bp 7? 315
31> 5/ana-ement Boar 5: +a#(unai as: retrieve 1< *e&ember 2>12? 311 51aE/unai.asA (arti&ipant "nformation5: U* lobal Com1act: retrieve < *e&ember 2>11? 312 5T%ZT-,8( summaryA B,! 0! 1aE/unay.as5: !euters: 3> 0ovember 2>12? 313 51aE/unai.as O8. !ompany e' )ea 1air-el y 1abyl in appointe )ea of 1aETransOil5: /engri *e&s: 11 O&tober 2>11? 314 5Annual Report 2>1>5: +a#(unai as: 25 /ar&) 2>11? 315 5Resour&es Assesment5: Bloomberg: 16 April 2>12?

125

8a@*unai0as operations in Iraq

#istory
"n *e&ember 2>1> t)e Boar of *ire&tors of 1/.5s %'ploration an (ro u&tion subsi iary 1/. %( approve t)e !ompany5s parti&ipation in a ten er to evelop t)e A##as fiel in "raq?314 Co=ever after later pullin- out of t)e t)e &ontra&t for t)e A##as fiel : 1/. =as not parti&ipatin- in any proje&ts in "raq as of *e&ember 2>11?

Activities and contracts

Akkas Alon- =it) 1orean 1o-as: 1aE/unai.as =on t)e ri-)ts to evelop t)e A##as fiel ur in- "raqMs t)ir ener-y bi in- roun in O&tober 2>1>? +n er t)e terms of t)e bi : 1o-as =as t)e operator of t)e proje&t an t)e propose remuneration fee =as G3?5> per barrel of oil equivalent 6boe7 pro u&e ?316 A&&or in- to 1/. %(5s !%O: t)e ne= proje&t =oul be of benefit to t)e &ompany5s em ployees: =)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 en-a-e in -as pro u&tion in t)e past: ot)er t)an =it) 5asso&iate -as5? 313 "n /ay 2>11 )o=ever 1aE/unai.as pulle out of t)e venture: leavin- 1o-as as t)e sole investor an operator an for&in- t)e &ompany to ouble its s)are in t)e proje&t?31;

8o5as 8orea 0as Corporation!

Type Tra e as $oun e Cea quarters 1ey (eople Revenue 0et in&ome (artially state-o=ne 1RZA>3646> 1<;3 ,eon-nam: .yeon--i: ,out) 1orea .an- ,oo Boo 6(resi ent: !%O731< 1R4 2;:4<3?3 billion 6appro' +, G26?6 billion7: 2>11?32> 1R4 134?3 billion 6appro' +, G162?< million 7: 2>11?32>

316 5Bi in- Results Overvie= for 2i&ensin- Roun 35: Ira' )nergy: retrieve 13 *e&ember 2>11? 313 5Annual Report 2>1>5: +a#(unai as: 25 /ar&) 2>11? 31; 5Anbar: &entral -overnments poise for fi-)t over A##as5: Ira' 0il !e1ort: 1 Bune 2>1>? 31< 51orea .as !orporation5: !euters, retrieve Banuary 2>13? 32> 5!onsoli ate $inan&ial ,tatements5: +ogas: retrieve 1< *e&ember 2>12?

126

V &)an-e on previous year Total Assets Total %quity %mployees 4ebsite

-36?5V32> 1R4 36:>1>?5 billion 6appro' +, G33?6 billion7: en 2>11?32> 1R4 ;:>43?< billion 6appro' +, G3?5 billion7: en 2>11?32> 3:>26 6Ban 2>127321 ===?#o-as?or?#r

0lobal snapshot
1orea .as !orporation 61O.A,7 =as establis)e in 1<;3 by t)e 1orean .overnment: =)o in 1<<< be-an to privatise t)e &ompany322? !onsequently: 1o-as is &urrently s)are bet=een t)e ,out) 1orean -overnment: =it) a 23 per&ent sta#e: an t)e state &ontrolle 1orea %le&tri& (o=er !orporation 61%(!O7 =it) 25 per&ent: =it) t)e t)e remainin- equity split amon- lo&al -overnment an institutional investors? 323 1o-as en-a-es in t)e pro u&tion an istribution of natural -as an in 2>11 =as t)e =orl 5s lar-est importer of liquefie natural -as 620.7? T)e &ompany is t)e sole provi er of 20. to 1orea: operatin- t)ree terminals an a nation=i e pipeline net=or#? T)e &ompany5s business s&ope also in&lu es natural -as e'ploration an pro u&tion: =it) -as fiel evelopment proje&ts in /yanmar: !ana a: Russia: Afri&a: Australia: "nonesia: +Ebe#istan an ot)ers in 2>11? 324 "n /ay 2>1> 1o-as revise its Arti&les of Asso&iation an reporte plans to enter into t)e ne= business of e'ploration: pro u&tion an sales of &ru e oil: mainly tar-etin- "raq?325

8o5as operations in Iraq

#istory
!ontra&ts si-ne in 2>>< mar#e t)e start of 1o-as5s =or# in "raq?

Activities and contracts

(ubair "n 2>><: 1o-as forme part of a &onsortium alon- =it) fello= &ompanies %ni an O&&iental to evelop t)e @ubair oil fiel in sout)ern "raq? 1o-as )ol s an 1;?35 per&ent s)are: %ni )as 32?;1 per&ent: O&&i ental )ol s 23?44 per&ent an "raq5s state-run /aysan Oil !ompany )ol s t)e remainin- 25 per&ent? 4)ile t)e &onsortium planne
321 5Our (rofile5 +ogas: retrieve 1< *e&ember 2>12? 322 5%ner-y profile of ,out) 1orea5: )ncyclo1edia of )arth: 2> ,eptember 2>>3? 323 5,out) 1orea (rofile 5: )nergy Information Administration: Bune 2>>3 3245 1orea .as !orporation5: !euters: retrieve 15 *e&ember 2>11? 325 51O.A, to %mbar# on "raq Oil Business5: +orea /imes: 3 /ay 2>1>?

123

to invest appro'imately G2> billion over t)e life of t)e proje&t: 1o-as itself )as sai it plans to invest aroun G6?5 billion in t)e fiel 326 &adra $or "raq5s se&on li&ensin- roun : 1o-as also forme part of a &onsortium to evelop t)e Ba ra oil fiel : to-et)er =it) .aEprom: (etronas an T(AO? T)e relatives sta#es )el in t)e fiel are as follo=sA .aEprom 64> per&ent7: 1o-as 63> per&ent7: (etronas 62> per&ent7: T(AO 61> per&ent7? 1o-as )as sai t)at it =ill invest G1?>5 billion in t)e pro je&t: =it) t)e &onsortium as a =)ole investin- a total of G3?52 billion to pump 13>:>>> barrels of oil per ay 6bp 7?323 Mansuriyah 4)en "raq laun&)e its t)ir li&ensin- roun in 2>1>: 1o-as =as favore amon- 15 &ompanies invite to bi for t)e A##as: /ansuriya): an ,iba -as fiel s be&ause of t)eir e'perien&e in t)e in ustry: an =as amon- 13 &ompanies t)at re-istere for t)e au&tion roun ?32; Tur#ey5s T(AO: 1u=ait %ner-y !ompany an 1o-as finalise eals in Bune 2>11 to jointly evelop t)e /ansuriya) fiel in eastern "raq: 32< =)i&) pays G3 per barrel of oil equivalent 6boe7 e'tra&te ?33> Akkas "n Bune 2>11 ,aba) Ab el 1a )im: an "raqi /inistry of Oil offi&ial: state t)at t)e min istry )a si-ne an a-reement =it) 1o-as to be-in evelopin- t)e A##as natural -as fiel ?331 But it =as not until O&tober of t)e same year t)at various elays =ere solve an a efinitive eal =as si-ne ? 32< By Bune: 1o-as )a a-ree to ouble its sta#e in t)e proje&t from 33?5 per&ent up to 35 per&ent: after its &onsortium partner 1aE/unai.as =it) re= une'pe&te ly from t)e proje&t? T)e "raqi state-o=ne 0ort) Oil !ompany 60O!7 too# t)e remainin- 25 per&ent? 331 T)e eal 1o-as si-ne 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 ? 32< Kirkuk-&ai.i 3i3eline 3ro.ect "n O&tober 2>1> 1o-as =on a G123 million &ontra&t to buil a 11>-#ilometre natural -as pipeline lin#in- t)e "raqi &ities of 1ir#u# an Baiji? T)e &ontra&t foresees t)at t)e pipeline =ill be built by 2>14?332
326 5%ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel 5: "all Street Journal: 25 Banuary 2>1>? 323 5"raq si-ns eal =it) .aEprom -roup for Ba ra) oil fiel 5: )nergy31edia ne&s: 2; Banuary 2>1> 32; 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey, 23 *e&ember 2>1>? 32< 5"raq in#s final eal ,1orea5s 1O.A,5: .ahoo@ *e&s, 13 O&tober 2>11? 33> 5/ansuriya) !ontra&t Area - Bi in- Results5: Petroleum Contracts and Licensing %irectorate, 2> O&tober 2>11? 331 51O.A, *eal for A##as .as-$iel "s ,i-ne 5 Ira' Business *e&s 1 Bune 2>11? 332 51O.A, =ins G123 million pipeline proje&t from "raq5: +orea /imes: 5 O&tober 2>12?

12;

8u$ait +ner5y Company

Type $oun e Cea quarters 1ey (eople Revenue 0et "n&ome V &)an-e on previous year Total Assets Total %quity %mployees 4ebsite (rivate 2>>5 ,almiya: 1u=ait333 ,ara A#bar 6!%O: *ire&tor7: /anssour Abou#)amseen 6!)airman7333 +, G13;?< million 62>117334 +, G34?; million 62>117334 [5;?<V334 +, G;;4?1 million334 +, G334?3 million334 464 6,eptember 2>117335 ===?#e&?&om?#=

0lobal snapshot
1u=ait %ner-y !ompany 61%!7 operates as an in epen ent oil an -as e'ploration an pro u&tion &ompany? "t en-a-es in t)e e'ploration: pro u&tion an evelopment of oil an -as reserves in t)e /i le %ast: 0ort) Afri&a an %urasia re-ions? !ountries =)ere 1%! )as operations in&lu e 1u=ait: %-ypt: 9emen: "raq: Oman: Russia an (a#istan? T)e &ompany: formerly #no= as @a)ra Oil an .as: =as foun e in 2>>5 an is )ea quartere in ,almiya: 1u=ait? T)e &ompany operates as a subsi iary of t)e @a)ra .roup? !%O ,ara A#bar sai in 0ovember 2>11 t)at t)e planne initial publi& offerin6"(O7 of t)e &ompany =as inten e to )elp it in pursuin- potential a&quisitions in t)e /i le %ast an 0ort) Afri&a re-ion? 333 A&&or in- to t)eir annual report: t)e &ompany5s vision is to be&ome t)e pre-eminent oil an -as &ompany in t)e /i le %ast: an aims to be pro u&in- 35:>>> barrels of oil equivalent 6boe7 per ay by t)e en of 2>15: =it) 4>> million barrels of oil equiavalent 6boe7 of prove an probable reserves?335 As of ,eptember 2>12 avera-e aily pro u&tion stoo at 13:266 boe per ay?334

333 51u=ait %ner-y !ompany5: Bloomberg Business&eek: retrieve 15 *e&ember 2>11? 334 5!orporate (rofile5: +u&ait )nergy Com1any: ,eptember 2>12? 335 5!ompany (rofile ,eptember 2>115: +u&ait )nergy Com1any: retrieve 15 *e&ember 2>11?

12<

8u$ait +ner5y Company operations in Iraq

#istory
T)e &ontra&ts si-ne in 2>11 =it) t)e "raqi -overnment mar#e t)e be-innin- of 1%!5s operations in "raq?

Activities and contracts

Siba and Mansuriyah 4as fields "n Bune 2>11 t)e 1%! announ&e t)at it )a been a=ar e 2>-year -as evelopment &ontra&ts for ,iba an /ansuriya) -as fiel s in "raq5s t)ir post-=ar bi in- roun ? T)e 1%! jointly bi =it) t)e Tur#is) (etroleum !orporation 6T(AO7 for bot) -as fiel s? 1%! be&ame t)e operator of ,iba: =it) a 45 per&ent s)are 6T(AO 3> per&entN stateo=ne ,out) Oil !ompany 25 per&ent7? At /ansuriya): T(AO be&ame t)e operator =it) a 33?5 per&ent majority s)are: 61%! 22?5 per&entN /i lan Oil !ompany 25 per &ent7?336 1u=ait %ner-y !)airman *r /anssour Abou#)amseen &ommente on t)e ealsA L4e are e'&ite to start to ay 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&)nolo-y to=ar s buil in- -as pro u&tion in "raq t)at meets omesti& nee s an e'port opportunities? 1u=ait %ner-y )as been =or#in- to=ar s obtainin- su&) &ontra&ts for over t)ree years: an to ay mar#s a si-nifi&ant milestone for 1u=ait %ner-y?K 333 &lock ' "n /ay 2>12 1%! announ&e t)at t)e &onsortium it le in "raq5s 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 63> per&ent7 an *ubai-base *ra-on Oil 63> per&ent7: =)ile 1%! )el an operatin- 4> per&ent sta#e? T)e a&&epte bi propose a remuneration fee of G6?24 per barrel?33; After t)e "raqi -overnment e'pelle T(AO from t)e Blo&# < &onsortium in 0ovember 2>12: 1%! =as as#e to ta#e over t)e s)are)ol in-: =)i&) in&rease its )ol in- to 3> per&ent?33<

336 5!ompany (rofile ,eptember 2>115: +u&ait )nergy Com1any: retrieve 15 *e&ember 2>11? 333 5$uture .as %'ports $rom "raq $iel s (ossible5: Arab /imes 0nline: 2> O&tober 2>11? 33; 5A !onsortium le by 1u=ait %ner-y a=ar e e'ploration an evelopment &ontra&t for 5blo&# <5: Basra: "raq5: +u&ait )nergy Com1any: retrieve 5 *e&ember 2>12? 33< 5"raq %'pels Tur#eyMs T(AO: as#s 1u=ait %ner-y to Repla&e5: Ira' Business *e&s: 3 0ovember 2>12?

13>

Lu=oil
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite (ubli& 2imite !ompany 2,%A21O*N /!ZA21OCN $4BA2+1 1<<1 /os&o=: Russia Da-it Ale#perov 6!%O7: Dalery .rayfer 6!)airman734> +, G133?3 billion 62>11734> +, G1>?4 billion 62>11734> [15V34> +, G<1?2 billion 6en 2>11734> +, G63?5 billion 6en 2>11734> 12>:3>> 6en 2>11734> ===?lu#oil?&om

0lobal snapshot
2u#oil is a major /os&o=-base international oil an -as &ompany: a&&ountin- for 2?2 per&ent of -lobal output of &ru e oil? 341 "n 2>11 it ran#e 6<t) in t)e $ortune .lobal 5>> 2ist of t)e most valuable &ompanies in t)e =orl ? 342 an in 2>12 =as t)e 1;t) lar-est oil &ompany in t)e =orl by pro u&tion?343 T)e &ompany =as forme follo=in- t)e issolution of t)e ,oviet +nion =)en t)ree state-run =estern ,iberian &ompanies 62an-epasnefte-aE: +rainefte-aE an 1o-alymnefte-aE7 mer-e an t)e initials of t)e ori-inal t)ree &ompanies =ere maintaine to form t)e ne= &ompany name? 344 T)e foun er: an subsequent !%O an )ol er of 2> per&ent of s)ares: is former ,oviet *eputy Oil /inister Da-it Ale#perov 343 =)o: a&&or in- to t)e *e& .ork /imes: )as #ept an unusually lo= profile in Russian politi&s?345 "n 2>11: 2u#oil &laime prove reserves of more t)an 1<?3 billion barrels of oil equivalent 6boe7: t)e majority of =)i&) is lo&ate in Russia? "t )a operations in 6> re-ions in Russia an 25 ot)er &ountries: an o=ne seven refineries an 6:35> -as stations? A si-nifi&ant ;<?; per&ent of t)e &ompanyMs prove reserves an <>?6 per&ent of mar#et34> 5Annual Report 2>115: Lukoil? 2>11? 341 5.eneral "nformation5: Lukoil, retrieve 1< *e&ember 2>12? 342 5.lobal 5>>A 2u#oil5: C** (oney: retrieve < *e&ember 2>11? 3435 T)e 4orl 5s Bi--est Oil !ompanies5: 4orbes: 16 Buly 2>12? 344 5OAO 2u#oil Cistory5: 4unding Universe: retrieve 1< *e&ember 2>12? 345 52u#oil5: *e& .ork /imes Business: retrieve 1< *e&ember 2>12?

131

able an /i per

)y ro&arbon pro u&tion are in Russia 341: but t)e &ompany also e'plores for oil -as in AEerbaijan: !olombia: %-ypt: "ran: 1aEa#)stan: an ot)er areas in t)e le %ast an !entral Asia? 346 Avera-e aily pro u&tion as of 2>12 =as 2?2 million boe ay?343

"n Buly 2>1> +, oil major !ono&o()illips sol its entire 2> per&ent sta#e in 2u#oil: val ue at aroun G< billion? 2u#oil a-ree to buy ba&# 3?6 per&ent of its sto&# from !ono &o()illips for G3?44 billion?343

Lu=oil operations in Iraq

#istory
2u#oil =as -rante t)e ri-)ts to evelop oilfiel s in 1<<3 by ,a am 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 Cussein5s re-ime after 2u#oil refuse to violate +0 san&tions a-ainst "raq by rillin-?34;? 2u#oil )a been tryin- to revive t)e eal sin&e 2>>3 after /os&o= =rote off most of "raq5s G12?< billion in ebts 34< an in April 2>>< 2u#oilMs !%O unsu&&essfully lobbie "raqi (rime /inister 0ouri al-/ali#i to reinstate t)e &ontra&t from t)e Cussein era?35>

Activities and contracts

West urna ! After unsu&&essfully bi in- for t)e first p)ase of t)e 4est Furna proje&t: 2u#oil an partner ,tatoil =on ri-)ts in 2>>< to evelop t)e se&on p)ase of "raqMs 5super -iant5 4est Furna &ru e eposit: t)e lar-est offere to forei-n investors in t)e se&on roun of bi in- in "raq?35> T)e &onsortium offere to evelop t)e fiel in e'&)an-e for G1?15 for ea&) barrel of oil it e'tra&te : outbi in- &ompanies in&lu in- B( an Total? +n er t)e terms of t)e &ontra&t: ,tatoil =oul )ol an 1;?35 per&ent sta#e in t)e &onsortium: =it) 2u#oil )ol in- 56?25 per&ent an t)e "raqi state5s 0ort) Oil !ompany 60O!7 )ol in- t)e remainin- 25 per&ent?351 2u#oil announ&e in 2>1> t)at t)ey planne to invest +, G4?5 billion at 4est Furna 2 over t)e follo=in- 4-5 years an G3>> million over 2>1>?352? "n 0ovember 2>12 2u#oil !%O Da-it Ale#perov su--este t)at 2u#oil may loo# to I=a e eeper into "raqI by e'pan in- t)rou-) parti&ipation in t)e 4est Furna-1 fiel ? +(" reporte t)at offi&ials in Ba-) a &onsi ere brin-in- 2u#oil into t)e proje&t to potentially repla&e %''on/obil: =)o an-ere t)e &entral -overnment by si-nin- eals
346 52u#oil !ompany (rofile5: .ahoo 4inance: retrieve < *e&ember 2>11? 343 5!ono&o()illips to ,ell 2u#oil ,ta#e After (ostin- (rofit .ain5: Bloomberg: 2; Buly 2>1>? 34; 5"raqA 2u#oil !)ief ,ays (re=ar *eal ,till Dali 5: Cor1"atch, 11 /ar&) 2>>4 34< 5Russia5s 2u#oil Cas 4on "raq5s 5!ro=n Be=el5 Oil $iel 5: Business Insider: 2< *e&ember 2>><? 35> 52u#oil: ,tatoil 4in 4est Furna 5: Bloomberg: 12 *e&ember 2>>< 351 5Oil $iel (roje&t in "raq 4on by 2u#oil an ,tatoil5: *e& .ork /imes: 2< *e&ember 2>><? 352 5,tatoil: 2u#oil in# "raq oil &ontra&t5: !ia*ovosti: 31 Banuary 2>1>

132

ire&tly =it) t)e semi-autonomous 1ur istan Re-ional .overnment 61R.7? 353 !euters reporte in 0ovember 2>12 t)at 2u#oil put its relations)ip =it) t)e &entral -overnment at ris# =)en its .eneva-base tra in- arm 2itas&o bou-)t oil from 1uristan: in efian&e of Ba-) a ? An offi&ial from "raqi state oil mar#eter ,O/O ismisse t)e &laims?354

*arathon Oil Corporation

Type Tra e as $oun e Cea quarters 1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite (ubli& 2imite !ompany 09,%A/RO 1;;3 Couston: Te'as !laren&e !aEalot Br 6(resi ent an !%O7 +, G14?3 billion 62>117355 +, G3 billion 62>117355 [14?3V355 +, G31?4 billion 6en 2>117355 +, G13?2 billion 6en 2>117355 3:322 6en 2>117355 ===?marat)on?&om

0lobal snapshot
/arat)on Oil !ompany is a Couston-base international ener-y &ompany en-a-e in e'ploration an pro u&tion: oil san s minin- an inte-rate -as? "ts =orl =i e prou&tion operations are fo&use in 0ort) Ameri&a: Afri&a an %urope? 356 T)e &ompany5s ori-ins lie in t)e pur&)ase of t)e O)io Oil !ompany by Bo)n *? Ro&#efeller5s ,tan ar Oil Trust in 1;;<: but t)e &ompany resume in epen ent pro u&tion follo=in- its issolution in 1<11? T)e O)io &)an-e 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? 353 "n /ay of 2>11: /arat)on5s Boar approve t)e spin-off of its o=nstream business: /arat)on
353 52u#oil may =a e eeper into "ra5:q UPI, 3> 0ovember 2>12? 354 5Russia5s 2+1O"2 joins rus) to e'port 1ur is) oil5:: !euters, 2; 0ovember 2>12? 355 52>11 Annual Revie=5: (arathon 0il Cor1oration, 2>11? 356 5About +s5: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11? 353 5About +sA Cistory5: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11?

133

(etroleum !orporation?35; At t)e en of 2>11 /arat)on )a proven reserves of 1?; billion barrels of oil equivalent 6boe7?35< As of 2>12 /arat)on =as evelopin- strate-i& -ro=t) assets in +, un&onventional liqui -ri&) plays an eep=ater An-ola? (ro u&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) liqui s a&&ountin- for aroun 3> per&ent of t)e mi'? 36>

*arathon operations in Iraq

#istory
/arat)on pre-qualifie to parti&ipate in t)e &entral -overnment5s se&on li&ensinroun in 2>><: but eventually e&i e not to bi ? 361 Cen&e &ontra&ts si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7 in 2>1> mar#e t)e be-innin- of /arat)on5s operations in "raq?

Activities and contracts

"n 2>1> /arat)on a&quire a position in four e'ploration blo&#s in 1ur istan in O&tober 2>1>: un er t)e frame=or# of pro u&tion s)arin- &ontra&ts 6(,!s7 si-ne ire&tly =it) t)e 1R.? T)ese =ere t)e Carir 6appro'imately 3;:>>> net a&res7 an ,afen 6appro'imately 43:>>> net a&res7 blo&#s: lo&ate nort)-east of %rbil: an t)e Atrus) an ,arsan- blo&#s: lo&ate nort)-=est of %rbil? 362 Harir and Safen /arat)on be&ame t)e operator at t)e Carir an ,afen blo&#s: =)ile t)e 1R. )el a 2> per&ent interest?363 Co=ever in Buly 2>12 t)e &ompany a-ree to 5farm o=n5 t)ese t=o blo&#s: re u&in- t)eir sta#e to 45 per&ent? 364 T)is =as to ma#e =ay for $ren&) oil major Total5s entry into t)e re-ion? 365 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&# be-an rillin- in Buly 2>12 an t)e first e'ploration =ell on t)e ,afen blo&# is planne for t)e first )alf of 2>13? 362

35; 5/arat)on5s Boar Approves ,pin-Off of /arat)on (etroleum !orporation5: 0il?oice: 25 /ay 2>11? 35< 5/arat)on Oil ,ets 2>13 G5?2 Billion !apital: "nvestment an %'ploration Bu -et5: 0ffshore Source: retrieve 1< *e&ember 2>12? 36> 52>1> Annual Revie=5: (arathon 0il Cor1oration: retrieve 11 O&tober 2>11? 361 5"raq5s Oil Bi Roun 2A +?s? $irms5 (arti&ipation5: "ikileaks 21 *e&ember 2>><? 362 51ur istan Re-ion of "raq5: (arathon 0il: retrieve 6 *e&ember 2>12? 363 5/arat)on A&quires (ositions in 4 %'ploration Blo&#s in 1ur istan5: Ira' Business *e&s, 2> O&tober 2>11? 364 51ur istan Re-ion of "raq5: (arathon 0il: retrieve 6 *e&ember 2>12? 365 5/arat)on Oil sells sta#e in oil fiel s in "raq5s 1ur istan5: !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 6.%(7? 366? Co=ever in *e&ember 2>12 .%( sol 53?2 per&ent of its interest in t)e blo&# to Abu *) abi 0ational %ner-y !ompany 6TAFA7? 363 "n April 2>11 /arat)on announ&e t)e is&overy of oil at t)e Atrus) site?36; Sarsan4 At ,arsan- t)e &ompany )as a 25 per&ent =or#in- interest? 36<

Occidental Petroleum
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et in&ome V &)an-e on previous year Total assets Total equity %mployees 4ebsite (ubli& 2imite !ompany 09,%AOZ9 1<2> 2os An-eles: +,A Ray R? "rani 6!)airman7: ,tep)en !)aEen 6(resi ent an !%O7 +, G23?< billion 62>11733> +, G 6?6 billion 62>11733> [45?3V33> G6> billion 6en 2>11733> G33?6 billion 6en 2>11733> over 4>:>>> 62>11733> ===?o'y?&om

0lobal snapshot
O&&i ental (etroleum: often referre to as 5O'y5 ue to its abbreviation on t)e 09,% sto&# e'&)an-e:331 )as oil an -as operations &onsoli ate in t)ree &ore areasA t)e +,: t)e /i le %ast an 2atin Ameri&a? "n 2>11 t)e &ompany5s +, operations a&&ounte for 5< per&ent of t)eir =orl =i e pro u&tion: t)e /i le %ast an 0ort) Afri&a 33 per&ent
366 5Atrus) 4ell *elivers for /arat)on !onsortium5: !ig#one: 14 April 2>11? 363 5TAFA Buys into Atrus) Blo&#5: Ira' Business *e&s: 3 *e&ember 2>12? 36; 5/arat)on ,tri#es Oil in "raq5: 6acks )'uity !esearch 2> O&tober 2>11? 36< 51ur istan Re-ion of "raq5: (arathon 0il: retrieve 6 *e&ember 2>12? 33> 5Annual Report 2>1>5 05y, retrieve >6 O&tober 2>11? 331 5O&&i ental (etroleum !orp (rofile5: !euters: retrieve >6 O&tober 2>11?

135

an 2atin Ameri&a 4 per&ent?33> T)e &ompany =as foun e in !alifornia in 1<2>? !)airman Ray "rani =as ele&te on t)e eat) of Arman Cammer in 1<<>: =)o )a )ea e t)e &ompany sin&e 1<53? 332 At t)e en of 2>11 O'y )el 2?3 billion barrels of oil equivalent 6boe7 in reserves an avera-e aily pro u&tion =as 42;:>>> barrels per ay 6bp 7? 33> A&&or in- to a feature in 4orbes ma-aEine: t)e se&ret of t)e &ompany5s su&&ess is 5no =il &attin-5 an &ompany presi ent ,teve !)aEen: a former investment ban#er: &ommente in 2>1> t)at I=e5re in t)e oil re&overy business: not t)e oil is&overy businessI? 333

Occidental operations in Iraq

#istory
T)e servi&e &ontra&ts si-ne in 2>>< mar#e t)e start of O&&i ental5s =or# in "raq? "n a lea#e +, iplomati& &able from early 2>1>: t)e "raq &ountry mana-er for !)evron &ommente t)at: e'&lu in- state-&ontrolle &ompanies: IO&&i ental (etroleum =as t)e only 4estern "O! t)at is not a former "(! 6"raq (etroleum !ompany7 partner an t)at bi a--ressively enou-) to be a=ar e a &ontra&t from "raq5s 2>>< oil bi roun s?I334

Activities and contracts

(ubair O&&i ental ori-inally bi for evelopment of t)e @ubair fiel in "raq5s first post-=ar li &ensin- roun : as part of a &onsortium =it) fello= &ompanies %ni: ,inope& an 1o-as: proposin- a remuneration fee of G4?;> per barrel? Co=ever on t)is o&&asion no bi s for t)e fiel =ere a&&epte as t)e per-barrels fees bi =ere &onsi ere too )i-) by t)e "r aqi -overnment?335 Co=ever follo=in- bilateral ne-otiations: in Banuary 2>1> O'y announ&e t)at t)e amen e &onsortium )a si-ne a &ontra&t =it) t)e state-o=ne ,out) Oil !ompany 6,O!7 an /aysan Oil !ompany 6/O!7 to evelop t)e fiel ? T)e relative sta#es in t)e &onsortium =ere as follo=sA %ni 632?; per&ent7: O&&i ental 623?44 per&ent7 an 1o-as 61;?35 per&ent7?336 A +, iplomati& &able from Banuary 2>1> &laime t)at t)e %niTO&&i entalT1o-as &onsortium =as t)e only &onsortium not to )ave a&&epte &)an-es eman e by t)e /inistry of Oil an su--este t)e &ompanies may )ave -aine some &on&essions on t)e &)an-es eman e by t)e /inistry?333
332 5!orporate Cistory5: 05y: retrieve 1< *e&ember 2>12? 333 5O&&i ental (etroleum5s (at) to %asy Oil5: 4orbes: 3 0ovember 2>1>? 334 5!)evron On "o& "nvestin- "n "raq5: "ikileaks: 2> $ebruary 2>1>? 335 5@ubair !ontra&t Area - Bi in- Results5: LA /imes: 2 Buly 2>><? 336 5O&&i ental (etroleum an partners to evelop massive "raqi oil fiel 5: LA /imes: 23 Banuary 2>1>? 333 5All Oil Bi Roun !ontra&ts To Be ,i-ne By Banuary 315: "ikileaks: 1< Banuary 2>1>?

136

Pa=istan Petroleum
Type $oun e Cea quarters 1ey (eople 4ebsite ,tate-o=ne 1<5>33; 1ara&)i 6(a#istan7 Asim 1)an 6!%O733< ===?ppl?&om?p#

0lobal snapshot
(a#istan (etroleum 6((275s s)are)ol in- is ivi e bet=een t)e -overnment 631 per&ent7: t)e ((2 %mployees %mpo=erment Trust 63 per&ent7 an private investors 622 per&ent7? 4it)in (a#istan: t)e &ompany operates si' pro u&in- fiel s an )ol s a =or#in- interest in 13 partner-operate pro u&in- fiel s? T)e &ompany &ontributes aroun 24 per&ent of t)e &ounty5s total natural -as supplies? ((2 )as also e'pan e 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? 33;

Pa=istan Petroleum operations in Iraq

#istory
T)e &ontra&ts si-ne follo=in- "raq5s fourt) li&ensin- roun in 2>12 mar#e t)e start of (a#istan (etroleum5s =or# in "raq?

Activities and contracts

&lock 5 "n 2>12 ((2 si-ne a -as e'ploration &ontra&t =it) t)e "raqi -overnment to e'plore for natural -as in Blo&# ; in *iyala an 4asit provin&es in eastern "raq? !%O Asim 1)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 a itional G4>> million as investments?I33<

33; 5Overvie=5: Pakistan Petroleum Limited: retrieve 6 *e&ember 2>12? 33< 5"raq: (a#istan (etroleum ,i-n $inal .as *eal5: *atural as Asia: 6 0ovember 2>12?

133

Petronas
Type $oun e Cea quarters 1ey (eople Revenue 0et in&ome V &)an-e on previous year Total Assets %mployees 4ebsite state-o=ne 1<34 1uala 2umpur: /alaysia ,)amsul AE)ar Bin Abbas 6!%O7 +, G<3?4 billion 62>1173;> +, G21?< billion 62>1173;> [25?4V3;> +, G153?4 billion 6en 2>1173;> 43:;6>3;> ===?petronas?&om?my

0lobal snapshot
(etronas: s)ort for 5(etroliam 0asional Ber)a 5: =as foun e in 1<34 an is /alaysia5s state-o=ne national oil &ompany an t)e &ountry5s most profitable &ompany? T)e &ompany is /alaysia5s only representative in t)e $ortune 5>> 3;1 an in 2>12 =as t)e 25t) lar-est -lobal oil &ompany by pro u&tion: at 1?4 million barrels per ay 6bp 7? 3;2 (etronas subsi iaries 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 23 billion barrels of oil equivalent 6boe7 an =as a major pro u&er of liqui petroleum -as 62(.7 an liquefie natural -as 620.7?3;3 "n 2>>3: t)e 4inancial /imes i entifie (etronas as one of t)e 5ne= seven sisters5 - one of t)e most influential ener-y &ompanies from &ountries outsi e t)e Or-anisation for %&onomi& !o-operation an *evelopment 6O%!*7? 3;4 "n turn: t)e )conomist refers to (etronas as 5a su&&essful e'ample of a national oil &ompany5 &ommentin- t)at: in &ontrast to BraEil5s (etrobras: /alaysia )as not ma e si-nifi&ant omesti& oil is&overies in re&ent years? *urin- t)e 1<<>s t)e &ompany be-an e'pan in- abroa : mostly in Afri&a an by 2>>3 )a investe in 66 upstream proje&ts in 22 &ountries? 3;5

3;> 5(etronas5: 4orbes: retrieve 1< *e&ember 2>12? 3;1 5/alaysia5s (etronas profit falls 23 per&ent 5: /he Boston lobe: 1 july 2>1> ? 3;2 5T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: 3 Buly 2>12 ? 3;3 5(etronas5: Hoovers: retrieve 15 *e&ember 2>11? 3;4 5T)e 0e= ,even ,isters5: 4inancial /imes: 12 /ar&) 2>>3? 3;5 5*rillin- an nation-buil in-5: )conomist: ; O&tober 2>><?

13;

Petronas operations in Iraq

#istory
T)e &ontra&ts si-ne by (etronas in 2>>< mar#e t)e be-innin- of t)eir operations in "raq? (etronas =as t)e most prolifi& bi er in "raq5s se&on li&ensin- roun t)at year: submittin- five bi s an =innin- four?3;6 (etronas operates in "raq via fully o=ne subsi iary (etronas "raq .arraf 2t 6formerly #no=n as (etraonas !ari-ali "raq 2t 7: t)e )ea offi&e of =)i&) is in *ubai? 3;3 3;;

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 bi in- in *e&ember 2>><? A&&or in- to lea#e +, iplomati& &ables: t)e un evelope .arraf fiel =as one of t)e first t=o fiel s offere : =)i&) re&eive bi s at 5stunnin-ly lo= pri&es5? T)e partners in t)e =innin- &onsortium =ere (etronas 66> per&ent7 an Bape' 64> per&ent7?3;6 Halfaya (etronas )el a 25 per&ent interest in t)e =innin- &onsortium bi in- for t)e Calfaya fiel ? Ot)er partners =ere !0(! 6t)e operator =it) 5> per&ent7 an Total 625 per&ent7? T)e remuneration fee offere =as G1?4> per barrel? T)e &ontra&t =as si-ne on t)e 23 Banuary 2>1>?3;6 Ma.noon (etronas also si-ne 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 )ol s 3> per&ent an t)e "raqi state )ol s 25 per&ent? 3;< &adra Only one &onsortium: le by .aEprom: bi for t)e Ba ra &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 63> per&ent7: 1orean .as !ompany 622?5 per&ent7: (etronas 615 per&ent7 an T(AO 63?5 per&ent7? T)e 25 per&ent "raqi state partner =as t)e Oil %'ploration !ompany 6O%!7? 3<>
3;6 5Oil ,tampe eA "raq:s 2n Bi Roun Result5:s "ikileaks: 14 *e&ember 2>><? 3;3 5(etronas5: %ubai International 4inance Centre, retrieve 6 *e&ember 2>123;; 5(etronas *ire&tory5: Petronas, retrieve 6 *e&ember 2>123;< 5"raq ,i-ns /ajnoon Oilfiel A-reement 4it) ,)ell: (etronas5: Bloomberg, 13 Banuary 2>1> 3<> 5"raqMs ,e&on (etroleum 2i&ensin- Roun Ba ra !ontra&t Area J Bi in- Results5: Ira'i (inistry of 0il, 2>><?

13<

ommunity relations
A&&or in- 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 be-innin- operations in t)e &ountry in 2>><?3<1 "n 2>1> tribal lea ers near t)e .arraf fiel eman e t)at (etronas &ompensate t)em for evelopments in t)e re-ion: &ausin- t)e e'ploration unit to )alt its =or#? Amont)e issues raise by t)e tribal lea ers =as t)e ama-e one by pipelines to lo&al a-ri&ulture: a &laim refute by lo&al offi&ials? Ab ul Cussein Ca i Cajr: te&)ni&al a viser to *)i Far5s provin&ial &oun&il: sai t)at tribal lea ers )a en-a-e in e'tortion usin- vi olent t)reats a-ainst bot) (etronas an "raqi state &ompanies? An Oil /inistry spo#esman sai t)at any attempt by t)e tribes to ne-otiate a &ompensation pa&#a-e ire&tly =it) (etronas =as a-ainst t)e la=?3<2 "n early 2>12 se&urity -uar s at t)e .arraf site sta-e a sit-in protest a-ainst t)e &ompany: eman in- =a-e parity =it) se&urity -uar s at t)e A) ab oil fiel an &ompensation for lan o=ners ne-atively affe&te by operations? "n a ition: 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 Far5s %nvironment *ir e&tor Raji 0u5eima /ins)i &ommente t)at t)ey s)oul abi e by ple -es ma e in t)eir environmental impa&t assessment 6%"A7 an t)reatene le-al a&tion by t)e %nvironment /inistry?3<3 "n a furt)er blo= to t)e &ompany5s operations: in 0ovember 2>12 villa-ers from near t)e .arraf fiel storme t)e fiel offi&es of (etronas an ama-e mu&) equipment? T)e unrest follo=e a ispute over ,)i5ite reli-ious observan&es: in =)at is a reli -iously &onservative re-ion of "raq: spar#e =)en (etronas employees alle-e ly remove fla-s )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 ? 3<1

%hell
Type Tra e as $oun e Cea quarters 1ey (eople (ubli& 2imite !ompany 2,%AR*,A 09,%AR*,A 1<>3 T)e Ca-ue 60et)erlan s7: 2on on 6+17 (eter Doser 6!%O7: Borma Ollila

3<1 5(rotestors storm .arraf oil fiel after reli-ious ispute5: Ira' 0il !e1ort: 3> 0ovember 2>12? 3<2 5Tribal eman s: alle-e e'tortion stall oil evelopment5: Ira' 0il !e1ort: 2 Bune 2>1>? 3<3 5Beyon t)e Cea linesA /ay 14: 2>125: Ira' 0il !e1ort: 14 /ay 2>12?

14>

6!)airman7 Revenue 0et "n&ome V &)an-e on previous year Total Assets Total %quity %mployees 4ebsite +, G4;4?5 billion 62>1173<4 +, G31?2 billion 62>1173<4 [52?3V3<4 +, G345?3 billion 6en 2>1173<4 +, G131 billion 6en 2>1173<4 <>:>>> 6en 2>1173<4 ===?s)ell?&om

0lobal snapshot
An-lo-*ut&) &ompany ,)ell =as ran#e in first pla&e on t)e 2>12 .lobal $ortune 5>> list of t)e =orl 5s most valuable &ompanies? 3<5 "t en-a-es =orl =i e in t)e upstream: o=nstream an &orporate se-ments: an also )as interests in &)emi&als an ot)er ener-y-relate businesses?3<6 "n 2>12 ,)ell =as also ran#e as t)e 3t) lar-est oil &ompany =orl =i e by pro u&tion: =it) avera-e aily pro u&tion of 3?< billion barrels of oil equivalent 6boe7 per ay?3<3 T)e &ompany name an t)e &orporate lo-o =ere e&i e upon ue to foun er /ar&us ,amuel5s 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 Tra in- !ompany in 1;<3? Royal *ut&) =as a &ompany forme to evelop oil fiel s in t)e *ut&) %ast "n ies an t)e t=o &ompanies joine for&es in or er to prote&t t)emselves a-ainst &ompetitor ,tan ar Oil? T)e full mer-er of t)e t=o &ompanies &ame in 1<>3? 3<; A&&or in- to !00: as a&&ess to oil -ets ti-)ter ,)ell is loo#in- to evelop its alternative ener-y assets an in 2>1> si-ne an a-reement =it) a BraEilian biofuel &ompany &alle !osan t)at ma#es et)anol from su-ar&ane? "n 2>11 ,)ell =as also evelopinte&)nolo-y to buil t)e first floatin-: liquefie natural -as 620.7 plant: =)i&) =oul -ive t)e &ompany an e -e over &ompetition =)en it &omes to a&&essin- fuel in eep =ater? T)is =ill be parti&ularly &riti&al as ,)ell )as si-ne off on ne= rillin- proje&ts in t)e .ulf of /e'i&o an off t)e &oast of BraEil? 3<5

%hell operations in Iraq

#istory
,)ell first entere "raq before it =as a soverei-n &ountry: as part of t)e Tur#is) (etro3<4 5Annual Revie= 2>115: Shell, 2>11? 3<5 5.lobal 5>>ARoyal *ut&) ,)ell5: C** (oney: retrieve 1< *e&ember 2>12? 3<6 5Royal *ut&) ,)ell (rofile5: !euters: retrieve 12 *e&ember 2>11? 3<3 5T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: 3 Buly 2>12? 3<; 5T)e be-innin-s5: Shell: retrieve 1< *e&ember 2>12?

141

leum !ompany 6pre e&essor of t)e "raq (etroleum !ompany7? T)e &ompany enjoye monopoly ri-)ts to t)e &ountry5s oil fiel s an i&tate t)e terms of pro u&tion an evelopment until 1<32: =)en "raq fully nationalise its oil se&tor an e'pelle t)e forei-n 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 "raq5s reserves: ta#in- sta#es in t)e 4est Furna 1 an /ajnoon fiel s?3<< A 2>12 report by !euters su--este t)at ,)ell =as e'plorin- t)e possibility of enterin- t)e 1ur istan re-ion: a su--estion 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- =e5ve -ot t)ree me-a-proje&ts on t)e -o 6in sout)ern "raq7:I? A&&or in- to t)e report: ,)ell )a &ome &lose to se&urin- &ontra&ts in t)e 1ur istan re-ion t=i&e: but pulle ba&# so as not to anta-onise t)e -overnment in Ba-) a : =)i&) &onsi ers &ontra&ts si-ne by t)e 1R. as ille-al? ;>>

Activities and contracts

West urna * $ollo=in- "raq5s first post-=ar li&ensin- roun s in 2>><: in Banuary 2>1> ,)ell =as t)e junior partner in t)e &onsortium t)at finalise a eal to evelop t)e 4est Furna fiel 6()ase 17: after furt)er ne-otiations =it) t)e "raqi -overnment? T)e senior partner in t)e &onsortium =as %''on/obil?;>1 %''on/obil )ol s a 6> per&ent sta#e in t)e proje&t: ,)ell )ol s 15 per&ent an t)e remainin- 25 per&ent belon-s to t)e "raqi state? Reports by %o& Jones ne=s=ire in 0ovember 2>11 su--este t)at ,)ell mi-)t ta#e over %''on5s sta#e in t)e fiel if t)eir &ontra&t =as terminate by t)e -overnment as a &on sequen&e of t)e eals its si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7? ;>2 As of 0ovember 2>12 %''on =as pro-ressin- =it) t)e sale of its 4est Furna assets: but it =as not yet &onfirme =)o t)e buyer =oul be?;>3 Ma.noon "n "raq5s se&on post-=ar li&ensin- roun in 2>><: ,)ell =as part of a &onsortium in&lu in- (etronas t)at =on t)e &ontra&t to evelop t)e /ajnoon oil fiel ? ,)ell )ol s a 45 per&ent s)are in t)e &ontra&t: (etronas 3> per&entan an "raqi state &ompany )ol s t)e remainin- 25 per&ent?;>4 T)e fee =as set at G1?3< per barrel an t)e &onsortium ple -e to in&rease output from t)e fiel to 1?; million barrels per ay 6bp 7: more t)an t=i&e =)at "raq )a e'pe&te ?;>5

3<< 5T)e se&ret )istory of t)e ,)ell -as eal5: Ira' 0il !e1ort: 21 Banuary 2>1> ;>> 5"raq says ,)ell enies oil tal#s =it) 1ur istan5: !euters: 26 ,eptember 2>12? ;>1 5%''on: ,)ell ,i-n $inal *eal $or "raqMs 4est Furna 1 Oil $iel 5: !oyal %utch Shell: 25 Banuary 2>1>? ;>2 5,)ell to Repla&e %''on at 4est Furna 1H5: Ira' Business *e&s: 21 0ovember 2>11? ;>3 5"raq says e'pe&ts %''on to finis) 4est Furna sale by *e&ember5:!euters: < 0ovember 2>12? ;>4 5Royal *ut&) ,)ell pl& =el&omes "raq /ajnoon &ontra&t a=ar 5: Shell: 11 *e&ember 2>><? ;>5 5"raq Oil $iel .oes to Royal *ut&) ,)ell an (etronas5: *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 alrea y raise pro u&tion at t)e /ajnoon fiel to 3>:>>> bp : up from 45:>>> bp previously: )o=ever a&#no=le -in- 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 pro u&tion tar-et of 135:>>> bp : t)e level require for t)e &ompany to start re&overin- &osts un er its eal =it) t)e "raqi oil ministry? ;>3 A&&or in- to ,)ell5s ire&tor of me ia relations *ie-o (ereE: 2:5>> out of 3:>>> ,)ell staff at t)e /ajnoon fiel in 2>12 =ere "raqis?;>; South 0as Utilisation Pro.ect ,ee alsoA South as Utilisation 1ro7ect "n ,eptember 2>>;: ,)ell si-ne a Cea s of A-reement 6COA7 =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 5,out) .as +tilisation (roje&t5?

%onan5ol
Type $oun e Cea quarters 1ey (eople Revenue 0et "n&ome V &)an-e on previous year 4ebsite (arastatal 1<36 2uan a: An-ola /anuel Di&ente 6(resi ent7 +, G34 billion 62>117;>< +, G3?2 billion 62>117;1> [32V;1> ===?sonan-ol?&o?ao

0lobal snapshot
,onan-ol +%% =as establis)e in 1<36 follo=in- t)e nationalisation of 5An-ol5: t)e oil -roup t)at An-ola5s ne= rulers in)erite from t)e (ortu-uese follo=in- in epen en&e? ,onan-ol +%% be&ame ,onan-ol %( in 1<<<? ;11;>< T)e &ompany &laims t)at: espite )avin- t)e -overnment as its sole s)are)ol er: ,onan-ol )as al=ays been -ov;>6 5,)ell Alrea y Reports ,u&&ess at /ajnoon5: Ira' Business *e&s: 12 O&tober 2>1> ;>3 5,)ell %'pe&ts To /eet "raq Oil $iel Tar-et *espite ,etba&#s5: "all Street Journal: 1< ,eptember 2>12? ;>; 5Beyon t)e Cea linesA O&t? <: 2>125: Ira' 0il !e1ort: < O&tober 2>12? ;><5 ,onan-olA An e&onomi& o&topus5: Sonangol: 1; Buly 2>12? ;1> 5,onan-olMs G3?2bn profit s)o=s 00(!Ms mo el as bro#en5: Business %ay: 12 *e&ember 2>12? ;11 5Our Cistory5: Sonangol: retrieve 1< *e&ember 2>11?

143

erne as a private &ompany an is un er stri&t performan&e stan ar s to ensure effi&ien&y an pro u&tivity?;12 ,onan-ol %( en-a-es in resear&): e'ploration: an pro u&tion of oil an -as? "ts a&tivities in&lu e prospe&tin-: evelopment an refinin- of )y ro&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 in ustry 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 ,onan-ol =as pro u&in- aroun 1>>:>>> barrels per ay 6bp 7 but =as loo#into in&rease t)is fivefol to 5>>:>>> bp ?;14 A&&or in- to a 2>11 report by t)e Or-anisation for %&onomi& !o-operation an *evelopment 6O%!*7: t)e revenues earne from oil an -as sales )ave ma e ,onan-ol t)e se&on lar-est &ompany in Afri&a in terms of turnover an profits? T)e report also &laims t)at ,onan-ol )as been be)avin- li#e a soverei-n =ealt) fun 6,4$7: usin- oilbase fun s for investments in ot)er &ountries: su&) as investments in 4est Afri&an iron ore mines?;15 Transparen&y =at&) o- Revenue 4at&) )as &riti&ise t)e &omple'ity an se&re&y of ,onan-ol: =)i&) oes not ivul-e all finan&ial relations an sub-&ontra&tin- pro&e ures for assi-nin- =or#?;16

%onan5ol operations in Iraq

#istory
T)e &ontra&ts si-ne in 2>>< mar#e t)e be-innin- of ,onan-ol5s operations in "raq? ,onan-ol =on t=o &ontra&t areas urin- "raq5s se&on roun of li&ensin- in 2>><: 0ajma) an Fayara? Bot) lie in 0ineve) provin&e: #no=n as one of "raq5s most trouble areas? I4e #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 pro u&e oil for 0ajma) an Fayara:I sai .aspar /artins: (res i ent an !%O of ,onan-ol?;13

;12 5About ,onan-ol %(5: Sonangol: retrieve 1< *e&ember 2>11? ;13 5,onan-ol %(5: Bloomberg Business "eek : retrieve 1< *e&ember 2>11? ;14 5,onan-olA An e&onomi& o&topus5: Sonangol: 1; Buly 2>12? ;15 5 ,onan-ol %(5: 0)C% Publishing: 3 /ay 2>11: p3>? ;16 5An-olaA Transparen&y ,naps)ot5: !evenue "atch Institute: retrieve 1< *e&ember 2>12? ;13 5An-ola5s ,onan-ol si-n "raqi oilfiel eals5: I/*: 2; Banuary 2>1>

144

Activities and contracts

ayara At t)e Fayara fiel : ,onan-ol too# a 35 per&ent sta#e in t)e venture? ,onan-ol sai t)at it =oul invest ", G2 billion at t)e fiel ? ;1; "n /ar&) 2>11 ,onan-ol starte =or# at t)e 0ajma) fiel an =as ue to start to i- =ells in April 2>11? ;1< )a.mah ,onan-ol =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=ar e t)e &ontra&t area?;2> Security 3roblems As of /ar&) 2>12 ,onan-ol5s proje&ts in "raq remaine paralyse un er 5for&e majeure5 follo=in- an atta&# on fa&ilities in 2>11? T)is set ba&# t)e &ompany5s international plans? +n er &urrent &on itions it )as been su--este t)at ,onan-ol =oul start prou&in- at a rate of 5>:>>> barrels per ay 6bp 7 from aroun 2>13? ;21

%tatoil
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets (artially state-o=ne O,%A,T2 09,%A,TO 1<32 ,tavan-er: 0or=ay Cel-e 2un 6!%O7: ,vein Rennemo 6!)airman7 +, G11<?6 billion 62>117;22 +, G6?3 billion 62>117;23 [116?4V;23 0O1 36;?6 billion 6appro'? +, G13;?4 billion7: 2>11?;22

;1; 5$A!TBOZ-Oil eals bet=een "raq an -lobal majors5: !euters: 26 $ebruary 2>1>? ;1< 5,onan-ol to ,tart 4or# on 0ine=a Oilfiel s5: Ira' Business *e&s: 14 /ar&) 2>11? ;2> 5"raqMs ,e&on (etroleum 2i&ensin- Roun 0ajma) !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Licensing %irectorate : 12 *e&ember 2>><? ;21 5,onan-ol5s "raq $iel ,till +n er $or&e /ajeure5: )nergia: 13 /ar&) 2>12? ;22 5Annual Report 2>115: Statoil, 2>11? ;23 5$ortune 5>>A ,tatoil5: C** (oney: retrieve 1< *e&ember 2>12?

145

Total equity %mployees 4ebsite

0O1 2;5?2 billion 6appro'? +,G51?4 billion7: 2>11?;22 3>:3>> 6en 2>117?;23 ===?statoil?&om

0lobal snapshot
,tatoil: formerly #no=n as 5,tatoilCy ro5: be&ame t)e lar-est offs)ore operator in t)e =orl follo=in- its mer-er =it) 0ors# Cy ro in 2>>3? ;24 T)e 0or=e-ian -overnment is t)e lar-est s)are)ol er in ,tatoil =it) 63 per&ent? ;25 Co=ever )ea of ,tatoil for !ana a ,tale Tun-esvi# )as tol press t)at ,tatoil be)aves li#e a private &ompany an t)e state )as no role in its mana-ement? ;26 ,tatoil =as also name t)e most transparent of t)e =orl 5s 1>5 publi&ly tra e &ompanies by pressure -roup Transparen&y "n ternational in 2>12?;23 "n %urope ,tatoil is t)e se&on -lar-est 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' &)an-es?;2; At t)e en of 2>11 ,tatoil )a proven reserves of 5?43 billion barrels of oil equivalent 6boe7?;2< As of 2>12 t)e &ompany =as pro u&in- bet=een 1?; - 2?1 million boe aily: a&&or in- to ifferin- estimates: ;3>;31 but =as aimin- to in&rease t)is fi-ure 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 be-innin- of ,tatoil5s involvement in "raq?

Activities and contracts

West urna ! in- for t)e first p)ase of t)e 4est Furna fiel : ,tatoil an After unsu&&essfully bi

;245 ,tatoil to buy t)e natural -as an oil operations of 0ors# Cy ro for G2; billion5: *e& .ork /imes: 1; *e&ember 2>>6? ;25 5T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: 3 Buly 2>12? ;26 50or=ayMs state-o=ne ener-y -iant ,tatoil =ants to be ju -e on its o=n a&tions5: 4inancial Post: 15 O&tober 2>12? ;23 5,tatoil tops: .aEproms flops in transparen&y ran#in-5: Barents 0bserver: 1> Buly 2>12? ;2; 5,tatoil in Brief5 Statoil: retrieve >3 O&tober 2>11? ;2< 5Annual Report 2>115: Statoil, retrieve 12 *e&ember 2>12? ;3> 5T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: 3 Buly 2>12? ;31 5,)ale to spur ,tatoil output rive5: Petroleum )conomist: 2; 0ovember 2>12?

146

partner 2u#oil =on ri-)ts in 2>>< to evelop t)e se&on p)ase of "raqMs 5super -iant5 4est Furna &ru e eposit: t)e lar-est offere to forei-n investors in 2>><5s se&on roun of bi in-;32? T)e &onsortium offere to evelop t)e fiel in e'&)an-e for G1?15 for ea&) barrel of oil it e'tra&te : outbi in- offers from &ompanies in&lu in- B( an Total? +n er t)e terms of t)e &ontra&t: ,tatoil =as to )ol an 1;?35 per&ent s)are of t)e &onsortium: =it) 2u#oil )ol in- 56?25 per&ent an t)e state-o=ne 0ort) Oil !ompany 60O!7 )ol in- t)e remainin- 25 per&ent? ;33 (eter /ellbye: ,tatoil5s Cea of "nternational %'ploration an (ro u&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 be-an sellin- off its sta#e in t)e fiel : leavin- Russian 2u#oil as t)e sole forei-n 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 Tra e as $oun e Cea quarters 1ey (eople Revenue 0et "n&ome Total Assets %mployees 4ebsite (ubli& 2imite !ompany T,ZAT2/ 09,%AT2/ 1<<2 !al-ary: !ana a Bo)n /anEoni 6!%O: (resi ent7 +, G;?3 billion 62>117;36 G336 million 62>117;36 G24?2 billion;36 3:6<5 62>127;36 ===?talisman-ener-y?&om

0lobal snapshot
Talisman %ner-y is an upstream oil an -as &ompany t)at en-a-es in t)e e'ploration: evelopment: pro u&tion: transportation: an mar#etin- of &ru e oil: natural -as: an natural -as liqui s? "t primarily operates in 0ort) Ameri&a: t)e +1: ,&an inavia: an sout)-east Asia? Talisman =as &reate in 1<<2 =)en B( spun off its !ana ian unit? !%O Bo)n /anEoni formerly =or#e for B( as )ea of t)e &ompany5s refinin- an mar#et;32 52u#oil: ,tatoil 4in 4est Furna5: Bloomberg, 12 *e&ember 2>><? ;33 5Oil $iel (roje&t in "raq 4on by 2u#oil an ,tatoil5: *e& .ork /imes, 2< *e&ember 2>><? ;34 5,tatoil plans to invest G1?4bn in "raq oilfiel5 : ulf %aily *e&s: < Banuary 2>1>? ;35 5"raq O1s ,tatoil sale of oilfiel sta#e -sour&es5: !euters: < Banuary 2>1>? ;36 5Talisman %ner-y5: 4orbes: retrieve 1< *e&ember 2>12?

143

in- unit?;33 T)e &ompany is liste on t)e Toronto an 0e= 9or# sto&# e'&)an-es? ;3; "n 2>12 Talisman %ner-y =as ran#e at number 624 in $orbes5 .lobal 2>>> list of t)e =orl 5s bi--est publi& &ompanies? ;36 Over 2>11 avera-e aily pro u&tion stoo at 426:>>> barrels of oil equivalent 6boe7 per ay an -lobal proven reserves stoo at 1?4< billion boe?;3<

9alisman +ner5y operations in Iraq

#istory
!ontra&ts si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7 in 2>>; mar#e t)e be-innin- of Talisman5s 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 fiel s in 1ur istan: ;4>? "n 2>>; t)e &ompany a&quire a 4> per&ent non-operate interest in Blo&# 144 61ur amir Blo&#7: in partners)ip =it) !al-ary-base 4estern @a-ros 64> per&ent7 an t)e 1R. 62> per&ent7;41? T)ey also a&quire a 6> per&ent operatin- interest in Blo&# 13< an si-ne a (ro u&tion ,)arin- !ontra&t 6(,!7 for a 55 per&ent =or#in- interest in Blo&# 1< in Bune 2>><?;42 "n Bune 2>>; Talisman announ&e t)at t)ey =oul spen !A* G3>> million to e'plore in t)e re-ion? A &ompany spo#esman sai t)at t)e &ompany )a performe a se&urity assessment an t)ou-)t t)at t)e re-ion 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 1ur istan =ells? ;44 "n *e&ember 2>12 Talisman5s )ea of e'ploration Ri&)ar Cerbert &ommente to t)e Petroleum )conomist t)at &apitalisin- on -as sales from its fiel s may offer a =ay of monetisin- its )y ro&arbons in 1ur istan -iven t)e politi&al &onstraints on oil e'ports: =)i&) are &ontrolle by t)e &entral ,tate Oil /ar#etin- Or-anisation 6,O/O7? T)is =oul allo= t)em to re&oup some of t)e money t)e firm )a investe in t)e 1uramir prospe&t?;45
;33 5B( sells G1?<B !olombian assets to %&opetrol: Talisman5: Colombia !e1orts: 3 Au-ust 2>1>? ;3; 5About Our !ompany5: /alisman )nergy: retrieve 1< *e&ember 2>11? ;3< 5Annual Report 2>115: /alisman )nergy, 2>11? ;4> 5Bi&#erin- Over Oil an .as 2a= Curts $orei-n "nvestment5: !uda&, 22 0ovember 2>11? ;41 5"raq 1ur istan 144 oil reserves ouble to 2?2 billion barrelsA au it5: Platts, 2> Buly 2>11? ;42 5T)e Role of t)e (rivate ,e&tor in (ea&e an *evelopment - *eliverin- for Results: Beyon %&onomi&s5: /alisman )nergy !e1ort, 12 /ay 2>11? ;43 5Talisman )ea s into "raq =it) G3>>-million sta#e5: Calgary Herald, 24 Bune 2>>;? ;44 5Talisman fin s li-)t oil at "raq =ell5: !euters: 26 /ar&) 2>12? ;45 51ur istan eyes major role in Tur#is) -as mar#et: Petroleum )conomist: 13 *e&ember 2>12?

14;

9otal
Type Tra e as $oun e Cea quarters 1ey people Revenue 0et "n&ome V &)an-e on previous year Total assets %mployees 4ebsite (ubli& 2imite !ompany %urone'tA$( 09,%ATOT 1<24 !ourbevoie: $ran&e !)ristop)e *e /ar-erie 6!%O7: T)ierry *esmarest 6!)airman7 Y166?6 billion 6appro'? +, G22>?5 billion7: 2>11?;46 Y12?3 billion 6appro'? +, G16?3 billion7: 2>11?;46 [16?1V;46 Y164?1 billion 6appro'? +, G213?2 billion7: en 2>11?;46 <6:1>4 6en 2>117;43 ===?total?&om

0lobal snapshot
"n 2>12 Total =as t)e =orl 5s 13t) lar-est oil &ompany by pro u&tion: =it) an avera-e of 2?3 million barrels of oil equivalent 6boe7 pro u&e per ay? ;4; "t )a operations in more t)an 13> &ountries?;43 T)e &ompany )as been t)rou-) several name &)an-es t)rou-) its )istory? "t =as foun e as t)e !ompa-nie $ran&aise es (atroles in 1<24 an in 1<23 it ma e its first is&overy at t)e Baba .ur-ur oil fiel in nort)ern "raq? T)e &ompany rename itself Total !$( in 1<;5 an later in 1<<1 t)e name =as &)an-e to Total? At t)is time t)e $ren&) -overnment o=ne over 3> per&ent of t)e &ompany5s sto&#: but re u&e t)is to less t)an 1 per&ent by 1<<6? 4)en Total too# over Bel-ian (etrofina in 1<<< it be&ame #no=n as Total $ina an after mer-in- %lf Aquitane in 2>>> it =as temporarily name Total$ina%lf?;4< At t)e en of 2>11 t)e &ompany )a proven reserves of 11?4 billion barrels of oil equivalent 6boe7?;43

;46 5$orm 2>$ 2>115: /otal, 2>11? ;435 .roup (resentation5: /otal: retrieve 1< *e&ember 2>12? ;4;5 T)e 4orl 5s 25 Bi--est Oil !ompanies5: 4orbes: retrieve 1< *e&ember 2>12? ;4<5 An illustrate )istory of Total5: /otal: retrieve 1< *e&ember 2>12?

14<

9otal operations in Iraq

#istory
Total ,?A? be-an its =or# in "raq as part of t)e "raq (etroleum !ompany 6"(!7 in t)e 1<2>s =)en it is&overe t)e 1ir#u# fiel : follo=e by furt)er evelopments at t)e BuEur-an an Abu .)irab fiel s in t)e 1<3>s?;5>? +n er ,a am CusseinMs re-ime in t)e 1<<>s: Total si-ne a-reements to evelop t)e /ajnoon an 0a)r Bin Omar fiel s in t)e &ase of t)e &ountry bein- free from san&tions? Co=ever after CusseinMs fall in 2>>3: t)e ne= a ministration announ&e t)at t)ey =oul not re&o-nise eals si-ne un er t)e i&tator? "n 2>>3: it =as reporte t)at Total si-ne an a-reement to-et)er =it) !)evron t)at =oul lea to t)e t=o &ompanies e'plorin- an evelopin- )y ro&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 &ompany5s position in t)e &ountry remaine un&ertain follo=in- t)e eals it si-ne in t)e summer of t)at year ire&tly =it) t)e semiautonomous 1ur istan Re-ional .overnment 61R.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 )ol in- an 1;?35 per&ent sta#e in t)e proje&t: !0(! 33?5 per&ent: (etronas 1;?35 per&ent an t)e "raqi state-run ,out) Oil !ompany 6,O!7 )ol in- 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 si-nature bonus of +, G15> million ;54 T)e &onsortium ple -e to boost output at Calfaya to 535:>>> barrels per ay 6bp 7 from a 2>1> level of 3:1>> bp ;55 Harir and Safen (Kurdistan) "n Buly 2>12 Total pur&)ase 1ur is) 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 /ar-erie )a si-nalle earlier t)at year t)at t)e &ompany =oul &onsi er investments in 1ur istan -iven t)e more attra&tive fis&al &on itions
;5>5 Total an partners (etro&)ina an (etronas to evelop t)e Calfaya oil fiel 5: /otal: 2; Banuary 2>1>? ;51 5Total si-n "raq oil &ontra&t for /ajnoon $iel 5: /he Bush Agenda: ; Au-ust 2>>3? ;52 5Total fa&es ultimatum on 1ur istan eal5: 4inancial /imes: 13 Au-ust 2>12? ;53 5"raq A !0(!5s Calfaya proje&t in "raq to start operation in C25: /he 4ree Library: < /ar&) 2>1>? ;54 5"raq in#s !0(!: Total: (etronas Calfaya eal5: Ira' 0il 4ield: 3> Banuary 2>1>? ;55 5!0(! says "ran: "raq oil proje&ts pro&ee =ell5 !euters: 21 April 2>1>?

15>

t)an in t)e sout)?;56 A (aris-base in ustry analyst quote by !euters sai t)at t)e &)allen-e for Total in t)ese blo&#s =oul be t)e transportation of t)e pro u&t: as Ba-) a &oul blo&# t)e use of its pipelines to t)e sout)? ;56 T)e +15s 4inancial /imes reporte t)at Cussein ,)a)ristani: "raqMs *eputy (rime /inister for ener-y: presente Total =it) an ultimatum to roll ba&# t)e eal =it) t)e 1R. or -ive up its interests &ontrolle by t)e fe eral -overnment 6t)e Calfaya fiel 7? Co=ever t)ese reports =ere not &onfirme ;52 an later t)at year *e /ar-erie es&ribe as Iun&learI =)et)er t)e &entral -overnment =oul li#e Total to quit operations at Calfaya?;53

9Ar=iye Petrolleri Anonim Orta=lBCB 9PAO!

Type $oun e Cea quarters 1ey (eople Revenue 0et "n&ome V &)an-e on previous year Total Assets ,)are)ol er %quity %mployees 4ebsite ,tate-o=ne 1<54 An#ara 6Tur#ey7 /e)met +ysal 6!%O7 +, G3?3 billion 62>117;5; +, G1?4 billion 62>117;5; [6?1V;5; +, G3?2 billion 6en 2>117;5; +, G5?; billion 6en 2>117;5; 4:;51 6en 2>117;5; ===?tpao?-ov?tr

0lobal snapshot
T(AO =as establis)e in 1<54: =)en it too# over from Tur#ey5s ,tate /inerals %'ploration "nstitute 6/TA7?;5< T(AO )as appro'imately 5:>>> employees t)rou-)out Tur#ey an at its bran&) offi&es abroa ? A&&or in- to offi&ial &ompany literature: in a bi to improve re-ional ener-y se&urity: T(AO &on u&ts its international a&tivities in t)e !aspian re-ion: 0ort) Afri&a an t)e /i le %ast? As of 2>11: e'ploration an pro u&tion a&tivities =ere bein- a&t ively &arrie out in AEerbaijan: 1aEa#)stan: 2ibya an "raq: an t)e &ompany =as sear&)in- for business opportunities in &ountries in&lu in- ,yria: Tur#menistan: "ran:
;56 5Total5s 1ur istan oil eal an-ers "raq5: !euters: 31 Buly 2>12? ;53 5Total says un&lear if "raq =ants it to e'it Calfaya5: Ira' Business *e&s: 13 0ovember 2>12? ;5; 52>11 Annual Report5: /PA0: retrieve 2> *e&ember 2>12? ;5< 5T+R1%9 - T(AO 8 "ts $iel s5: All Business: 24 April 2>>>?

151

Russia: !olombia: ,u an 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 preparinfor t)e privatisation of T(AO?;61 Tur#ey5s oil an -as transportation &ompany BOTA, =as establis)e as a subsi iary of T(AO in 1<34?;62 "n 0ovember 2>12 BOTA, si-ne an a-reement =it) AEerbaijani state oil &ompany ,O!AR as s)are)ol ers of t)e Trans-Anatolian pipeline proje&t 6TA0A(7: one of t)e lin#s in t)e &)ain of t)e ,out)ern !orri or pipeline proje&t aime at brin-in- -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 be-an =or# in "raq in 1<<4 ;64 an )as si-ne 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 &ountry5s t)ir li&ensin- roun earlier t)at year?;65 Ira' 0il !e1ort reports an in&reasin-ly &lose relations)ip bet=een t)e Tur#s an t)e 1ur istan Re-ional .overnment 61R.7 as bein- a &ause of t)e &ol lapse in relations: )o=ever as of 2>12 T(AO itself )a no investments in t)e 1ur istan re-ion?;66

Activities and contracts

&adra $ollo=in- "raq5s se&on li&ensin- roun in 2>><: T(AO =as part of t)e &onsortium =)i&) =on a &ontra&t to evelop t)e Ba ra oilfiel ? T)e &onsortium: in =)i&) T(AO )ol s a 1> per&ent sta#e: 6.aEprom 4> per&ent: 1O.A, 3> per&ent an (etronas 2> per&ent7;63 ori-inally requeste G6 per barrel of oil e'tra&te from t)e fiel but later a&&epte t)e Oil /inistry5s 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 ten er for Ba ra oilfiel : a in- t)at "raqi aut)orities )a been e'ertin- efforts to
;6> 52>1> Annual Report5: /PA0: retrieve 15 *e&ember 2>11? ;61 5Tur#ey5s plans to privatise T(AO at #ey sta-e5: !euters: 3 Banuary 2>11? ;62 5About +s5: B0/AS: retrieve 2> *e&ember 2>12? ;63 5,O!AR: Botas an T(AO establis) &ompany for TA0A( pipeline5: A#erne&s: 3 0ovember 2>12? ;64 5%astern (romise5: 08 *e5t eneration: retrieve 3 *e&ember 2>12? ;65 5"raq %'pels Tur#eyMs T(AO: as#s 1u=ait %ner-y to Repla&e5: Ira' Business *e&s: 3 0ovember 2>12? ;66 5Ba-) a bla&#lists T(AO =it)out e'planation5: Ira' 0il !e1ort: ; 0ovember 2>12? ;63 5"raq si-ns eal =it) .aEprom -roup for Ba ra)5: !euters: 2; Banuary 2>1>? ;6; 5Russian ener-y -iant .aEprom =ins &ontra&t for "raq5s Ba ra oil fiel 5: /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(AO5s "nternational (roje&ts *epartment /e)met Ali 1aya also a e in 2>>< t)at t)e &ompany re-ar e t)e ten er as a first step for "raq an t)at T(AO =ere ea-er to parti&ipate 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'?;3> T(AO steppe in to ta#e t)e pla&e of ,ino&)em: =)i&) =it) re= from t)e &onsortium urin- ne-otiations? !0OO! )ol s a 63?35 per&ent majority sta#e in t)e -roup: =)ile T(AO )ol s 11?25 per&ent an t)e "raqi -overnment t)e remainin- 25 per&ent?;31 (resi ent of t)e %'e&utive Boar an *ire&tor .eneral of T(AO /e)met +ysal sai t)at Iby =innin- t=o ten ers: T(AO plans to pro u&e 1>>:>>> barrels of oil per ay in t)e ne't t)ree years in "raqI?;32 Mansuriyah and Siba 4)en "raq laun&)e its t)ir li&ensin- roun in 2>1>: t)ree -as fiel s =ere ten ere for evelopmentA A##as: /ansuriya): an ,iba?;33 A &onsortium of T(AO 65> per&ent7: 1u=ait %ner-y !ompany 63> per&ent7 an 1o-as 62> per&ent7 finalise eals in Bune 2>11 to jointly evelop t)e /ansuriya) fiel in eastern "raq:;34 =)i&) pays G3 per barrel of oil equivalent 6boe7 e'tra&te ;35 1u=ait %ner-y 66> per&ent operatin- sta#e7 an T(AO 64> per&ent7 =on t)e bi to jointly evelop t)e ,iba fiel in t)e sout) an si-ne a eal t)at =ill pay t)em G3?5> per boe e'tra&te ?;36 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 re-ional an -eo-rap)i&al pro'imity of T(AO an 1u=ait %ner-y to "raq playe a role in t)eir =innin- of t)e &ontra&ts: a&&or in- to t)e !yprus-base ener-y ne=sletter (iddle )ast )conomic Survey B())SC?;33 &lock ' $ollo=in- "raq5s fourt) li&ensin- roun in /ay 2>12: T(AO =as part of t)e &onsortium
;6< 5"raqi Oil /inister .la T(AO 4ins Oil Ten er in "raq5: /urkish "eekly: 13 *e&ember 2>><? ;3> 5"raq si-ns eal =it) !)inese: Tur#is) oil firms 5: /he Peninsula: 1; /ay 2>1>? ;31 5"raq in eal =it) !0OO!: T(AO for /aysan oilfiel s5: !euters: 13 /ay 2>1> ? ;32 5Tur#ey5s T(AO a=ar e se&on "raq oil eal5: "orld Bulletin, 1; /ay 2>1>? ;33 5.as $iel s Bi Roun "n "raqA ,u&&ess 4it) Ris#5: (iddle )ast )conomic Survey, 23 *e&ember 2>1>? ;34 51u=ait %ner-y Ba-s !ontra&ts $or ,iba: /ansuriya .as $iel s "n "raq5: Arab /imes: 2> O&tober 2>11? ;35 5/ansuriya) !ontra&t Area - Bi in- Results5: Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>11? ;36 5,iba !ontra&t Area - Bi in- Results5: Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>11?

153

t)at =as a=ar e t)e &ontra&t for t)e <>>-square-#ilometre Blo&# <? T)e relative sta#es )el =ere t)e follo=in-A *ra-on Oil 63> per&ent7: T(AO 63> per&ent7 an 1u=ait %ner-y 64> 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? Ab ul /a) i al-Amee i: ire&tor of t)e Oil /inistryMs (etroleum !ontra&ts an 2i&ensin*ire&torate 6(!2*7 e'plaine t)at Ifor reasons to o =it) non-te&)ni&al issues an outsi e t)e responsibility of my offi&e an me personally b t)e Tur#is) &ompany T(AO =as e'&lu e from t)e &onsortium b t)is e&ision is final: t)ere is no approval to si-n t)e &ontra&t for Blo&# < b t)e e&ision 6to e'pel T(AO7 is from t)e &abinet?L T)e &)an-e =oul mean t)at 1u=ait %ner-y5s )ol in- =oul rise to 3> per&ent? ;33 A&&or in- to Ira' 0il !e1ort: Iit appears t)at re-ional politi&s are to blameI for t)e e&ision?;3;

Companies $ith contracts $ith the 8R0

A -ro=in- list of international ener-y &ompanies )ave si-ne &ontra&ts =it) t)e 1R.: espite t)e fa&t t)at t)e "raqi -overnment in Ba-) a )as e&lare any oil eals si-ne =it) t)e 1R. ille-al? ;3< A 1R. offi&ial sai in *e&ember 2>12 t)at t)ere =ere 45 to 5> &ontra&tors no= =or#in- in t)e re-ion?;;> T)e follo=in- is a 6non-e')austive7 list of t)e international firms =it) operations in t)e re-ion: liste by &ountry? T)e list =as &ompile from t)e relevant &orporate =ebsites: a&&esse in *e&ember 2>12A

Companies $ith operations in 8urdistan

Austria
O/DA ===?omv?&om

anada
.roun star Resour&esA ===?-roun starresour&es?&om 0i#o Resour&esA ===?ni#oresour&es?&om ,)amaran (etroleumA ===?s)amaranpetroleum?&om Talisman %ner-yA ===?talisman-ener-y?&om Dast %'plorationA ===?vaste'ploration?&om
;33 5"raq %'pels Tur#eyMs T(AO: as#s 1u=ait %ner-y to Repla&e5: Ira' Business *e&s: 3 0ovember 2>12? ;3; 5Ba-) a bla&#lists T(AO =it)out e'planation5: Ira' 0il !e1ort: ; 0ovember 2>12? ;3< 5"raq sees %''on5s interest in sout) lar-er t)an 1ur eal5: !euters, 1< 0ovember 2>11? ;;> 5As 1ur istan oil booms: eal-ma#in- a&&elerates5: Ira' 0il !e1ort: 3 *e&ember 2>11?

154

4estern@a-rosA ===?=esternEa-ros?&om

hina
A a' (etroleumA ===?a a'petroleum?&om

#ungary
/O2A ===?mol?)u

India
Relian&e "n ustriesA ===?ril?&om

'orway
*0O "nternationalA ===? no?no

!apua 'ew Guinea

Oil ,ear&)A ===?oilsear&)?&om

Russia
.aEpromA ===?-aEprom?&om

,outh -orea
1orea 0ational Oil !ompanyA ===?#no&?&o?#r

)urkey
*o-an %nerjiA ===? o-an)ol in-?&om?tr .enel %ner-yA ===?-enelener-y?&om (etoilA ===?petoil?&om?tr

United Arab $mirates

Abu *)abi 0ational %ner-y !ompany 6TAFA7A ===?taqa?ae ;;1

United -ingdom
AfrenA ===?afren?&om
;;1 5TAFA Buys into Atrus) Blo&#5: Ira' Business *e&s: 3 *e&ember 2>12?

155

.ulf 1eystone (etroleumA ===?-ulf#eystone?&om (eren&oA ===?peren&o?&om ,terlin- %ner-yA ===?sterlin-ener-yu#?&om

United ,tates
Aspe&t %ner-yA ===?aspe&tener-y?&om 6in pro&ess of ivestin- assets as of *e&ember 2>127;;1 !)evronA ===?&)evron?&om CessA ===?)ess?&om Cunt (etroleumA ===?)untoil?&om /urp)y Oil !orporationA ===?murp)yoil&orp?&om

156

Iraqi Entities Ministry and its operating companies

*inistry of Oil
%tructure
T)e Oil /inistry is t)e #ey institution in "raq5s )y ro&arbons se&tor? ;;2 T)e Oil /inister is t)e fun&tional )ea of t)e "raqi in ustry: =it) several un erse&retaries reportinire&tly to )im? +n er 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<;3 le to t)e &reation of 15 state o=ne oil &ompanies ire&tly un er 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 roleA (etroleum Resear&) 8 *evelopment !enter 6(R*!7N Baiji Oil Trainin- "nstitute 6BaiOT"7N Basra Oil Trainin- "nstitute 6BasO"T7N 1ir#u# Oil Trainin- "nstitute 61OT"7N Ba-) a Oil Trainin- "nstitute 6BOT"7N Ceavy %n-ineerin- %quipments 6C%%,!O7N ,out) Refineries !ompany 6,R!7N /i lan Refineries !ompany 6/R!7N 0ort) Refineries !ompany 60R!7N .as $illin- !ompany 6.$!7N ,out) .as !ompany 6,.!7N 0ort) .as !ompany 60.!7N /aysan Oil !ompany 6/O!7N ,out) Oil !ompany 6,O!7N /i lan Oil !ompany 6/*O!7N 0ort) Oil !ompany 60O!7N "raq *rillin- !ompany 6"*!7N Oil (ro u&ts Re istribution !ompany 6O(*!7N ,tate Or-anisation for /ar#etin- of Oil 6,O/O7N Oil (ipelines !ompany 6O(!7N "raqi Oil Tan#er !ompany 6"OT!7N Oil %'ploration !ompany 6O%!7N ,tate !ompany of Oil (roje&t 6,!O(7?;;4 As of 2>>3 t)e /inistry )a a total of 66:5>> employees in total a&ross all of its separ ate entities?;;5 On 21 *e&ember 2>1> Ab ul 1arim al-2uaibi be&ame Oil /inister after t)e in&umbent Cussein ,)a)ristani move posts to be&ome *eputy (rime /inister for %ner-y?;;6

Role
T)e /inistry is responsible for t)e ay-to- ay mana-ement of t)e oil in ustry: in&lu ;;2 5"raq %ner-y Outloo#5: International )nergy Agency: < O&tober 2>12? ;;3 5"raq5s Oil ,e&torA "ssues an Opportunities5: James A- Baker Institute for Public Policy : *e&ember 2>>6? ;;4 5/inistry %stablis)ments5 Ira'i (inistry of 0il: retrieve < Banuary 2>12? ;;5 5!ase ,tu y on "raqMs Oil "n ustry5: Baker Institute: /ar&) 2>>3? ;;6 5"raqi parliament approves ne= -overnment5: BBC: 21 *e&ember 2>1>?

153

in- t)e overall implementation of oil poli&y: en&oura-in- investments: &oor ination bet=een t)e state-o=ne oil &ompanies an trainin- &enters: an operation of infrastru&ture?;;3 "t is also responsible for publis)in- information on revenue -eneration: =)i&) in&lu es mont)ly ata on pro u&tion an e'ports? ;;; 0e-otiation of oil &ontra&ts is &arrie out t)rou-) t)e ,tate Oil /ar#etin- Or-anisation 6,O/O7? ;;< T)e /inistry also re&eives an &onsi ers appli&ations for t)e establis)ment of &ru e oil refineries after a -overnorate or provin&e )as -iven preliminary approval for t)eir &onstru&tion?;<> An : inasmu&) as it is t)e fe eral -overnment5s ministry in &)ar-e of oil an -as: it establis)es -ui elines for t)e measurement of )y ro&arbon pro u&ts? ;<1 By means of t)e Oil (ro u&ts *istribution !ompany 6O(*!7: t)e ministry provi es an elivers t)e petroleum pro u&ts nee e for &ivilian: &ommer&ial an military a&tivities: as =ell as supplementin- ele&tri&ity nee s in or er to establis) permanent po=er supplies?;<2 A itionally it &omman s its o=n poli&e for&e: =)i&) is tas#e =it) t)e se&urity of t)e &ountry5s oil infrastru&ture: preventin- t)e smu--lin- of &ru e an fuel: an even t)e lo&ation an efusion of lan mines? ;<3

%tate Oil *ar=etin5 Or5anisation %O*O!

Role
"raq5s ,tate Oil /ar#etin- Or-anisation 6,O/O7 is an important a&tor in t)e "raqi oil se&tor: eeme by t)e fe eral -overnment to be t)e sole bo y investe =it) t)e aut)ority to or-anise t)e sale an e'port of "raqi oil? T)e pro&ee s 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 nee s by pur&)asin- an im portin- oil pro u&ts su&) as -asoline: -as oil: #erosene an liqui petroleum -as 62(.7?;<4 ,O/O5s ire&tor as of 2>12 =as $ala) al-Amri: ;<5 =)o also serve as "raq5s representative to O(%!?;<6
;;3 5T)e Role of .overnment in Oil an .as5: *ational Investment Commission : retrieve 23 0ovember 2>11? ;;; 5*omesti& !onsumption5 Ira'i (inistry of 0il, retrieve 23 0ovember 2>11? ;;< 5,O/O is sole mar#eter of "raq oil J ministry5: 6a&ya: 1> /ay 2>><? ;<> 5"nstru&tions 0o? 617 of 2>><5: Ira'i (inistry of 0il: retrieve 1; 0ovember 2>11? ;<1 5"raqi national &o e for measurements of )y ro&arbon flui s5: IA(B Ira': retrieve 23 0ovember 2>11? ;<2 5/inistry ,ervi&es5: Ira'i (inistry of 0il , retrieve 23 0ovember 2>11? ;<3 5T=elve Reasons 4)y "raq 4ill 0ot Be a /ajor Oil %'porter: (art One5: "e (eant "ell: 6 /ay 2>11? ;<4 5About +s5: S0(0: retrieve 11 Banuary 2>12? ;<5 5"raq "n&reases *e&ember Oil %'ports by 1?<V $rom /ont) %arlier5: Bloomberg: 1; *e&ember 2>11? ;<6 5"raq fa&ts an fi-ures5: 0P)C Ira': retrieve ; Banuary 2>13?

15;

6istory
After t)e nationalisation of "raqi petroleum resour&es in Bune 1<32: t)e "raqi -overnment forme t)e .eneral *ire&torate for Oil /ar#etin- 6.*O/7 to mana-e an run all mar#etin- operations relate to &ru e oil an its refine pro u&ts? T)e transformation of t)e petroleum se&tor le to t)e mer-er of "raq5s 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- Or-anisation 6,O/O7? "n 1<<;: ,O/O be&ame a publi& &ompany re-istere at t)e /inistry of Tra e un er t)e name Oil /ar#etin- !ompany? *espite its name &)an-e: t)e abbrevi ation ,O/O =as preserve ? ,O/O5s ne= i entity as a publi&ly re-istere &ompany -ave it more fle'ibility an liberty to mar#et "raqi &ru e oil an refine pro u&ts in surplus of "raq5s omesti& nee s: a&&or in- to "raq %ner-y %'po? ,in&e t)e 2>>3 +,-le invasion of "raq: in&rease in omesti& eman for some oil pro u&ts le ,O/O to -ain aut)orisation to import oil pro u&ts for omesti& &onsumption? ;<3 0fficial "ebsite$ ===?somooil?-ov?iq

Petroleum Contracts and Licensin5 Directorate PCLD!

Role
T)e (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7 is a stru&ture un er t)e "raqi /inistry of Oil?;<; T)e (2!* is responsible forA t)e announ&ement an pre-qualifi&ation pro&esses of li&ensin- roun sN 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 6"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 ten er proto&ol 6"T(7 an provi in- te&)ni&al ataN re&eivin- an ans=erin- t)e "O!s inquiriesN issuint)e efinitive mo el &ontra&t an final ten er proto&ol 6$T(7N an : t)e bi in- pro&ess itself?;<< As of April 2>12 t)e *ire&tor .eneral of t)e (!2* =as Ab ul /a) i al-Amee i? <>> 0fficial "ebsite$ ===?p&l -iraq?&om

;<3 5Oil /ar#etin- !ompany 6,O/O75: Ira' )nergy )51o: retrieve 11 Banuary 2>12? ;<; 5"raq to +p)ol A&&or 4it) %''on /obil R$or 0o=:M Al-Amee i ,ays5: Bloomberg: 14 *e&ember 2>11? ;<< 54t) 2i&ensin- Roun ,&)e ule5: Ira'i (inistry of 0il: retrieve 1; *e&ember 2>11? <>> 5Ab ul /a) i Al-Amee i5: 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 pro u&tion in "raq5s nort)ern fiel s:<>1 notably t)e super-iant 1ir#u# fiel ?<>2 T)e &ompany5s operation area spans t)e -overnorates of 1ir#u#: 0ineve): %rbil: Ba-) a : *iyala an part of Cilla an 1ut?<>1 Operatin- in some of "raq5s least se&ure territory: t)e &ompany )as been subje&t to repeate atta&#s by insur-ents an or-anise &rime sin&e 2>>3? "n Buly 2>>6 a ire&tor: A el FaEEaE: =as #i nappe in Ba-) a <>3 an in ,eptember 2>12 a &ar bomb at t)e &ompany )ea quarters #ille at least seven people an =oun e 13 ot)ers? <>4 T)e 0O! supplies &ru e oil of ifferent types to "raqi refineries an asso&iate -as to t)e 0ort) .as !ompany60.!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>>3?<>5 "t provi es )ousin- for many of its employees: maintains a 2>>-be )ospital in 1ir#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 1ir#u# fiel ?<>6 "n early 2>13 ,ameer ,alman al-Taei =as name ne= )ea of t)e 0O!: repla&in- Cami al-,ae i: =)o )a been *ire&tor .eneral sin&e 2>1>?<>3

6istory
T)e 0ort) Oil !ompany =as &reate follo=in- t)e issolution of "raq5s 0ational Oil !ompany 6"0O!7 in 1<;3?<>5 4)en al-,ae i repla&e /anaa Ab ulla) al-+bai i as )ea of t)e 0O! in Banuary 2>1> t)e appointment prove &ontroversial as )e is a ,)i5ite from t)e sout)ern provin&e of /aysan: espite )avin- =or#e in t)e 0ort) Oil !ompany for many years? T)e out-oin- +bai i lau e ,ae i5s e'perien&e but sai )is appointment =as Inot suitable for t)e spe&ial status of 1ir#u#I an a lo&al oil =or#ers union sent a letter protestin- t)e appointment to t)e &ity aut)orities in 1ir#u#?<>;<><?
<>1 50ort) Oil !ompany (rofile5: Ira'i (inistry of 0il: retrieve 3> *e&ember 2>11? <>2 5"raq names 0ort) Oil !ompany )ea 5: /rade Arabia, 4 Banuary 2>1>? <>3 5Atta&#s on "raqi pipelines: oil installations: an oil personnel5: Institute for the Analysis of lobal Security: retrieve 2> Buly 2>1>? <>4 5!ar bomb at "raq 0ort) Oil !ompany #ills seven5: Agence 4rance Presse: < ,eptember 2>12? <>5 5!ase ,tu y on "raqMs Oil "n ustry5: !ice University: /ar&) 2>>3? <>6 5/ain "nstallations5: *orth 0il Com1any: retrieve 2> Buly 2>1>? <>3 5"raq 0ames 0e= *eputy Oil /inister: 0ort) Oil !o !)ief5: !ig#one: ; Banuary 2>13? <>; 5"raq names ne= )ea of 0ort) Oil !ompany5: !euters: 4 Banuary 2>1>? <>< 5"raq names ,)i5ite to )ea 0ort) Oil !ompany5: !euters: 4 Banuary 2>1>?

16>

0fficial "ebsite$ ===?no&?-ov?iq

%outh Oil Company %OC!

Role
4it) pro u&tion output of just over 2 million barrels per ay 6bp 7 as of Banuary 2>12: "raq5s state-run ,out) Oil !ompany 6,O!7 is one of t)e bi--est pro u&ers in t)e =orl an : a&&or in- 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 mana-ement stru&ture =)i&): a&&or in- to t)e Ba#er "nstitute: in&reasin-ly respon s to re-ional lea ers)ip?<11 "t )as operators)ip of "raq5s sout)ern fiel s: in&lu in- its bi--est pro u&in- fiel at Rumaila?<12 Ot)er #ey fiel s in&lu e @ubair: /ajnoon: 4est Furna an 2u)ais? T)e &ompany plays a #ey role in e'pan in- e'port infrastru&ture in or er to support t)e pro u&tion -ro=t) it )ire t)e international oil &ompanies 6"O!s7 to &reate? As of 2>12 t)e ,O! =as pro-ressin- =it) plans to fi' sin-le-point moorin-s 6,(/s7: &omplete meterin- stations an pipelines in or er to ease e'ports: =it) plans to repair an up-ra e t)e e'istin- al-Basra oil terminal 6ABOT7 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<11 an as of early 2>12 =as )ea e up by *)ia Baffar?<1>

6istory
*urin- t)e 1<3>s t)e ,O! =as a subsi iary of t)e "raq 0ational Oil !ompany 6"0O!7? <13 "t -re= t)rou-)out t)e 1<3>s as "raq5s oil in ustry e'pan e : rea&)in- pea# pro u&tion levels of 2?35 million bp of oil?<14 T)e &ompany5s operations =ere ba ly ama-e in t)e =ar of 1<<1 an a-ain in t)e =ar of 2>>3? But by early 2>>4 t)e ,O! )a mana-e to restore pro u&tion of over 2 million bp ?<14 "n Buly 2>>5 t)e .eneral +nion of Oil %mployees: =)i&) &omprises t)ousan s of =or#ers from t)e ,O!: =ent on a 24-)our stri#e: eman in- t)at a lar-er 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-4aeli &alle for t)e &entral -overnment to -ive a fair s)are of oil money to )is
<1> 5F8AA ,out) Oil !o? &)ief *)ia Baffar5: Ira' 0il !e1ort: 15 $ebruary 2>12? <11 5"raq5s Oil ,e&torA "ssues an Opportunities5: James A- Baker Institute for Public Policy : *e&ember 2>>6? <12 5%'ploration an (ro u&tionA Business Report "raq5: BP (aga#ine: 2>1>? <13 5,out) Oil !ompany5: 0il ?oice: retrieve 1> Banuary 2>13? <14 5About t)e !ompany5: South 0il Com1any: retrieve 6 Banuary 2>12?

161

re-ion?<15 "n 2>>;: as plans for e'pansion of t)e "raqi oil in ustry pro&ee e : t)e /aysan Oil !ompany =as spun off from ,O!?<16 !ompany ire&tor $aya al-0ema =as remove from )is post in Buly 2>>< in =)at t)e -overnment sai =as Irestru&turin-I? Co=ever a&&or in- to t)e Arabian 0il and as =ebsite: it =as =i ely believe t)at 0ema =as sa&#e be&ause )e oppose t)e au&tions of servi&e &ontra&ts for "raqi fiel s to international oil &ompanies 6"O!s7? <13 0fficial "ebsite$ ===?so&-basra)?&om

Iraq Drillin5 Company IDC!

Role
T)e "raq *rillin- !ompany 6"*!7 is a state-o=ne &ompany un er t)e "raqi /inistry of Oil =)i&) is lo&ate in Ba-) a an 1ir#u# an spe&ialises in rillin- an oil an -as =ell =or#overs? "n 2>>6 it )a 1; ri-s in operation an employe 4:13> staff? <15 T)e "*! is ivi e in t=o epartmentsA t)e 0ort)ern Operations *epartment an t)e ,out)ern Operations *epartments?<1;

6istory
T)e "*! =as forme as su&) in 1<;3: =)en t)e "raq 0ational Oil !ompany 6"0O!7 =as isban e ?<1< T)e first joint venture 6BD7 in t)e post-,a am "raqi oil in ustry o&&urre =)en a eal =as finalise in 2>>< bet=een t)e "*! an t)e /esopotamia (etroleum !ompany: from t)e +nite 1in- om?<2> T)e "*! also si-ne a memoran um of un erstan in- 6/o+7 for joint rillin- an trainin- opportunities =it) 1!A *%+TA.: a Britis) oil an -as servi&e &ompany: in 2>1>?<21 Alt)ou-) t)e BD =it) /esopotamia (etroleum !ompany eventually faile : in 2>11 t)e "*! =on a &ontra&t to rill in t)e Rumalia oil fiel to-et)er =it) ,&)lumber-er: t)e =orl 5s lar-est oilfiel servi&es provi er? <22
<15 5"raq5s Oil ,e&torA "ssues an Opportunities5: James A- Baker Institute for Public Policy : *e&ember 2>>6? <16 50e= "raq oil firm aims to triple pro u&tion in /aysan5: !euters: 2; Bune 2>>;? <13 5"raq Oil /inistry fires ,out) Oil !ompany &)ief5: Arabian 0il and as: 3> Buly 2>><? <1; 5"raq *rillin- !ompany 6"*!75: Ira' )nergy )51o: retrieve 3> 0ovember 2>11? <1< 5"raq 0ational Oil !ompany: An Cistori&al An (oliti&al (erspe&tive5: (iddle )ast )conomic Survey 21 ,eptember 2>><? <2> 5"raq finaliEes oil rillin- joint venture =it) /esopotamia (etroleum5: Ira' 0il !e1ort: 26 $ebruary 2>><? <21 51!A *%+TA. establis)es presen&e in "raq5: +CA %)U/A : 14 O&tober 2>1>? <22 5"*!5s ,u&&ess ,tory5: Ira' 0il 4orum: 22 Buly 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 insur-ents: in&lu in- al-Fae a: follo=in- t)e 2>>3 o&&upation of t)e &ountry?<24

*aysan Oil Company *OC!

Role
T)e /aysan Oil !ompany 6/O!7 is responsible for fiel s in t)e /aysan provin&e =)i&) in&lu es si' pro u&in- fiel s 6BaEer-an: Abu-.)arb: $a##a an Calfaya7: as =ell as /ajnoon: =)i&) it operates in partners)ip =it) t)e ,out) Oil !ompany 6,O!7? /aysan also )ol s five is&overe but unpro u&in- fiel s: in&lu in- t)e Cu=eiEa: al-RafiMe: %ast Rafi an: *ujeila an 1umait fiel s?<25 T)e &ompany5s )ea quarters are in t)e &apital of /aysan provin&e: Amara? <26 /ana-in- *ire&tor Ali /uarij =as reporte to )ave been remove from t)e post in Bune 2>11 after bein- &)ar-e =it) ba a ministration an failure to a&)ieve )i-)er oil prou&tion results urin- )is tenure?<23 Co=ever as of mi -2>12 press reports su--este )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 6,O!7 in 2>>; to eal =it) plans for e'pan e pro u&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 pro u&in- at least 1>>:>>> barrels per ay 6bp 7 to )ave its o=n state-run oil &ompany to fo&us on evelopin- its o=n oil fiel s? 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&&or in- to -overnment statements?3;6 0fficial "ebsite$ ===?mo&?oil?-ov?iq
<23 5"raqi *rillin- !ompany - 14> 4ells in 2>115: Ira' Business *e&s: 1; Banuary 2>11? <24 5"raq ,tarts *rillin- for Oil in Camrin /ountains5: Ira' Business *e&s: 5 Bune 2>11? <25 5$orei-n !ompanies 1een to 4or# for /issan Oil5: Ira' Business *e&s: 1 *e&ember 2>11? <26 5!onta&t +s5: (aysan 0il Com1any: retrieve 5 Banuary 2>12? <23 5,out) "raq /issanMs !oun&il sa&#s /issan Oil !ompanyMs *. from )is post5: As&at Al3Ira': < Bune 2>11? <2; 5/issan )eral s oil boom =it) Calfaya openin-5: Ira' 0il !e1ort: 1< Buly 2>12? <2< 50e= "raq oil firm aims to triple pro u&tion in /aysan5: !euters: 2; Bune 2>>;? <3> 5"raq Aims to Boin O(%! Fuota ,ystem in 2>145: Bloomberg: 26 O&tober 2>11?

163

Other Iraqi +ntities

"raq )as numerous entities or-anise un er t)e Oil /inistry in a pro u&in- &ompanies: =)i&) are liste an outline belo=? ition to t)e major

North 0as Company N0C!

T)e state-o=ne 0ort) .as !ompany 60.!7: base in 1ir#u#: <31 is responsible for t)e utilisation of all asso&iate -ases pro u&e at "raq5s nort)ern fiel sA ry -as use in ele&tri&ity -eneration stations: fuel -as use in ot)er in ustrial fa&tories: an ra= materials use in t)e petro&)emi&al in ustry in or er to manufa&ture fertilisersN liqui petroleum -as 62(.7N natural -asolineN an : sulp)ur? <32 0fficial &ebsite$ ===?n-&?-ov?iq

%outh 0as Company %0C!

T)e state-o=ne ,out) .as !ompany 6,.!7 is responsible for t)e pro&essin- of asso&iate -as from t)e "raq5s sout)ern fiel s in or er to pro u&e ry -as: liqui -as an natural -asoline: in a ition to t)e in ustrial mana-ement of liquefie -as stora-e tan#s an e'port terminals?<33 "n 0ovember 2>11: !euters reporte t)e approval of a G13 billion eal bet=een t)e ,.!: Royal *ut&) ,)ell an /itsubis)i to &apture -as t)at is flare off in t)e oilfiel s aroun t)e sout)ern oil )ub of Basra? T)e eal establis)e a ne= &ompany &alle t)e Basra .as !ompany 6B.!7: a joint venture of t)e ,.! an t)e ,)ellT/itsubis)i &onsortium: =)i&) &oul eventually lea to t)e e'port of liquefie natural -as 620.7? <34 0fficial &ebsite BarC$ ===?s-&iraq?&om

North Refineries Company NRC!

T)e state-o=ne 0ort) Refineries !ompany 60R!7 is t)e lar-est of t)e /inistry5s refinin- &ompanies? T)e 0R!5s total refinin- &apabilities as of O&tober 2>11 =ere estimate to be 4>2:>>> barrels per ay 6bp 7? T)e 0R! pro u&es various refine pro u&ts: =)i&) in&lu eA unlea e -asoline: #erosene: aviation turbine: #erosene 6AT17: iesel an -asoline: lubri&ant oil pro u&ts: spin le oil: transformer oil: asp)alt: sulfur: liquefie refinery -ases: an ot)ers? T)e 0R! operates t)e 0ort): ,ala in: ,ininya: Fayara: 1asa#: 1ir#u# an Ca eet)a refineries?<35

<31 50ort) .as !ompany5: 6a&ya: retrieve 1> Banuary 2>13? <32 50ort) .as !ompany 60.!75: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <33 5,out) .as !ompany5: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <34 5"raq Approves G13bn .as-!apture !ontra&t 4it) ,)ell: /itsubis)i5: Ira' Business *e&s: 16 0ovember 2>11? <35 50ort) Refineries !ompany5: *orth !efineries Com1any: retrieve 25 *e&ember 2>11?

164

T)e 0R! is )ea quartere at t)e Baiji Oil Refinery 6BOR7? <36 an as of April 2>12 t)e *ire&tor .eneral =as Ab ul .)afoor /o)ame Ab ul-Babar? <33 0fficial &ebsite$ ===?nr&baiji?&om

*idland Refineries Company *RC!

T)e state-o=ne /i lan Refineries !ompany 6/R!7 is responsible for t)e in ustrial mana-ement an operation of oil refineries in t)e mi lan re-ion of "raq: su&) as t)e *aura refinery? T)e /R! pro u&es a =i e ran-e of refinery pro u&ts: =)i&) in&lu eA liqui petroleum -as 62(.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 )ea quartere at t)e *aura Refinery<36 an as of *e&ember 2>11 t)e *ire&tor .eneral =as *at)ar al-1)asbab?<3; 0fficial &ebsite$ ===? auramr&?&om 6ar7

%outh Refineries Company %RC!

T)e ,out) Refineries !ompany 6,R!7 provi es a variety of refine oil pro u&ts an operates t)e Basra: *)i Far an /aysan refineries?<4> T)e &ompany is )ea quartere at t)e Basra Refinery <36 an as of mi -2>11 t)e *ire&tor .eneral =as Ab ul Cussein 0asir Fasim?<41 0fficial &ebsite$ ===?sr&?-ov?iq

Oil Pro;ects Company %COP!

T)e Oil (roje&ts !ompany 6,!O(7 is responsible for t)e esi-n an e'e&ution of oil proje&tsA refineries: oil epots: pipelines: stora-e tan#s: an e'portin- &ru e 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 subsi iary &ompanies of t)e "raqi Oil /inistry? <43 0fficial &ebsite$ ===?s&op?-ov?iq

<36 5"raqi Refineries (resent An $uture5: "ikileaks: ; Banuary 2>><? <33 5"raq Refinery 2>12 &onferen&e pro-ramme5: 13 April 2>12? <3; 5/i lan Refineries !ompany 6/R!75 Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <3< 5*aura5: (idland !efineries Com1any: retrieve 1> Banuary 2>13? <4> 5*epartment5: South !efineries Com1any: retrieve 25 *e&ember 2>11? <41 5+, Approves .rant for Basra Refinery $easibility ,tu y5: Ira' Business *e&s 25 Buly 2>11? <42 5Oil (roje&ts !ompany5: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <43 50i)a /ousa5: Ira' 0il 4orum: 23 O&tober 2>11?

165

Oil Pipelines Company OPC!

T)e Oil (ipelines !ompany 6O(!7 is responsible for mana-ement an operation of oil epots: pumpin- stations: an pipelines t)at lea to istribution epots an in ustrial &onsumers?<44 "t is =it) t)e O(! t)at private &ompanies must si-n &ontra&ts in or er 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 6"OT!7: base in Basra: is responsible for seaborne transportation of oil in t)e "raqi oil in ustry?<46 T)e "OT!5s fleet =as almost estroye in t)e se&on .ulf 4ar? <46 Co=ever in 2>12 t)e &ompany put out a ten er for t)e pur&)ase or &onstru&tion of a ne= &ru e oil tan#er: =)i&) =oul be t)e -overnment5s t)ir state-o=ne oil transport vessel: to a to t)e t=o &urrently in operation =)i&) =ere bou-)t in 2>>3 an 2>>;?<43 0fficial &ebsite$ ===?iot&-basra?&om

Petroleum Research " Development Center PRDC!

T)e (etroleum Resear&) 8 *evelopment !enter 6(R*!7 is a resear&) institute establis)e =it) t)e purpose of evelopin- met)o s of s&ientifi&: pilot an e'perimental resear&) for t)e oil in ustry? "n t)is sense: t)e (R*!A solves te&)ni&al problems relate to petroleum: evelops refinin- te&)niques in or er to fin ne= pro u&ts or improve petroleum pro u&ts t)at alrea y e'ist: provi es s&ientifi& support an information servi&es to t)e "raqi oil in ustry: follo=s t)e latest s&ientifi& an te&)nolo-i&al resear&) on oil in ustry evelopment an re u&tion of environmental pollution: an sustains bilateral &ooperation efforts =it) "raqi universities: t)eir post--ra uate stuents an professors?<4; 0fficial &ebsite$ ===?pr &?-ov?iq

0as Fillin5 Company 0FC!

T)e .as $illin- !ompany 6.$!7 =as foun e in 1<<; <4< an is responsible for in ustrial
<44 5(ipe 2ine !ompany5: Ira' )nergy )51o: retrieve on 25 *e&ember 2>11? <45 51O.A, =ins G123m "raqi (ipeline (roje&t5: Ira' Business *e&s: < O&tober 2>12? <46 5"raqi Oil Tan#ers !ompany5: Ira' )51o 0nline: retrieve 25 *e&ember 2>11? <43 5"raq %'ten s *ea line for !ru e Tan#er Ten er5: Ira' Business *e&s: 1< April 2>12? <4; 5About t)e &enter5: Petroleum !esearch 8 %evelo1ment Center: retrieve 25 *e&ember 2>11? <4< 5About +s5: Ira'i as 4illing Com1any: retrieve 1> Banuary 2>13?

166

mana-ement an operation of -as fillin- &omple'es? T)e &ompany re&eives -as t)at is pro u&e by t)e 0ort) .as !ompany 60.!7 an ,out) .as !ompany 6,.!7 in or er 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 62(.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 6BOT"7: Basra 6BasOT"7 : 1ir#u# 61OT"7 an Baiji 6BaiOT"7?<52<53 %stablis)e in 1<51: t)e "nstitute in 1ir#u# is t)e ol est petroleum te&)ni&al institute in t)e /i le %ast? After t)e se&on .ulf 4ar: t)e institute as a =)ole =as transferre to Baiji: but in 2>>5 t)e institutes =ere separate an be&ame in epen ent? <53 T)e "nstitute in Ba-) a is &onsi ere one of t)e lar-est Arab petroleum te&)ni&al institutes? T)e "nstitute in Basra is t)e se&on lar-est of t)ose t)at are run in "raq? All four institutes e u&ate t)eir stu ents in a variety of te&)ni&al e u&ation &ourses relate to t)e oil in ustry an sen t)eir stu ents: later on in t)eir stu ies: to petroleum in ustry =or#sites for furt)er trainin- an a&&limation to t)e in ustry5s =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 for raftin- t)e &ountry5s fis&al bu -et an overseein- its implementation: imposin- an &olle&tin- ta'es an &oor inatint)e payment of pensions an salaries of -overnment employees? <54 "t is also responsible for reportin- t)e &ountry5s offi&ial e'pen iture ata?<55
<5> 5.as $illin- !ompany5: Ira' )nergy )51o: retrieve 25 *e&ember 2>11? <51 5/inistry of Oil in&reases pumpin- liqui -as for a&tual nee 5: Ira'i *e&s: 14 Au-ust 2>12? <52 5Ba-) a Oil Trainin- "nstitute5: Baghdad 0il /raining Institute: retrieve 25 *e&ember 2>11? <53 5About us5: +irkuk 0il /raining Institute: retrieve 25 *e&ember 2>11? <54 5/inistry of $inan&e "raq5: (a1s of the "orld: retrieve 25 0ovember 2>11? <55 5Report to !on-ressional !ommitteesA ,e&urin-: ,tabiliEin-: An Rebuil in- "raq5: United

163

T)e fe eral bu -et: =)i&) is passe as a la= by t)e "raqi parliament: is rafte by t)e /inistry of $inan&e in &onsultation =it) ot)er ministries: -overnorates an t)e re-ional -overnment? T)e investment bu -et is rafte =it) t)e assistan&e of t)e /in istry of (lannin-?<56 $rom t)e 2>>3 o&&upation on=ar s: revenues from e'port sales of "raqi petroleum pro u&ts =ere eposite into t)e *evelopment $un for "raq 6*$"7: an a&&ount )el by t)e !entral Ban# of "raq 6!B"7 at t)e 0e= 9or# $e eral Reserve Ban#? T)e *$" is man a-e by t)e "raqi /inistry of $inan&e an a ministere by t)e !B"? %'pen itures from t)e *$" 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 bu -et?<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?<53

Central ,an= of Iraq C,I!

T)e !entral Ban# of "raq 6!B"7 =as establis)e on t)e 6 /ar&) 2>>4 on intro u&tion of t)e !entral Ban# of "raq 2a=? T)e ban#5s prin&ipal fun&tions are toA maintain pri&e stabilityN implement monetary poli&y an e'&)an-e rate poli&iesN mana-e forei-n reservesN issue an mana-e t)e "raqi &urren&yN an re-ulate 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: ,ulaymaniya) an %rbil?<5; "n 2>11 "raq5s ,upreme !ourt rule t)at t)e !B" an ot)er previously in epen ent bo ies s)oul be put un er 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 "nteri or for ,inan al-,)abibi: =)o )a le t)e ban# sin&e its &reation? T)e state reason for t)e arrest =ere alle-ations of finan&ial =ron- oin-: but -overnment &riti&s see t)e &)ar-es as politi&ally motivate an an attempt by t)ose in po=er to si eline t)e politi&ally in epen ent e&onomist<5< an to -ain -reater &ontrol over t)e +, G63 billion of reserves )el by t)e ban#? Toby *o -e: "raq spe&ialist at t)e 2on on ,&)ool of %&onomi&s in 2on on: su--este t)at (rime /inister al-/ali#i )a Ilon- =ante to a&&ess t)e ollar reserves t)at ,inan =as )ol in- ba&# to stabilise t)e "raqi inarI? <6> Ab ul Baset Tur#i: )ea of t)e ,upreme Au it Boar : =as name interim &entral ban# -overnor after al-,)abibi5s suspension?<61
States overnment Accountability 0ffice: retrieve 25 0ovember 2>11? <56 5"raqA %'tra&tive "n ustries5: !evenue "atch Institute: retrieve 25 0ovember 2>11? <53 5"raqi parliament approves ne= -overnment5: BBC: 21 *e&ember 2>1>? <5; 5Cistory of t)e !B"5: Central Bank of Ira': retrieve 25 0ovember 2>11? <5< 5,inan al-,)abibi: "raqi !entral Ban# !)ief: "ssue Arrest 4arrant Over !orruption Alle-ations5: Huffington Post: 1; O&tober 2>12? <6> 5"raqi &entral ban# &)ief suspen e 5: 4inancial /imes: 13 O&tober 2>12? <61 5"raq *ismisses !entral Ban# !)ief Ami "nvesti-ation5: "all Street Journal: 16 O&tober 2>12?

16;

Role in mana5ement of oil revenues

$rom t)e 2>>3 o&&upation of "raq to Buly 2>11: t)e !B" )a arran-ements =it) t)e $e eral Reserve Ban# of 0e= 9or# 6$RB097 =)ereby t)e $RB09 maintaine an oil pro&ee s a&&ount t)at re&eive "raqi oil sales revenues? Of t)ese pro&ee s: <5 per&ent =ere assi-ne to t)e *evelopment $un for "raq 6*$"7: <62 &reate by a +nite 0ations ,e&urity !oun&il 6+0,!7 resolution in /ay 2>>3<63 an )ouse =it)in t)e !B"? T)e remainin- 5 per&ent =as assi-ne to t)e +nite 0ations !ompensation !ommission5s fun a&&ount:<62 establis)e in 1<<1 for "raq to pay &ompensation for losses resultinfrom its invasion an o&&upation of 1u=ait in 1<<>?<64 *urin- t)is perio : an or-anisation &alle t)e "nternational A visory an /onitorinBoar 6"A/B7 )a oversi-)t of t)e operations of t)e *$"? T)is in&lu e au it oversi-)t: bot) over t)e &ontrol an reportin- of oil e'port revenues: an over t)e use of reven ues by t)e "raqi ministries? On t)e 1 Buly 2>11 oversi-)t of t)e *$" =as )an e over to t)e "raqi !ommittee of $inan&ial %'perts 6!O$%7? <65 T)e +0,! =el&ome t)e "raqi fe eral -overnment5s assumption of oversi-)t an full aut)ority over its evelopment fun at t)e same time t)at it un ers&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&utive aut)ority responsible for t)e -eneral poli&y of t)e state an t)e &omman er-in-&)ief of t)e "raqi arme for&es? Ce ire&ts t)e !oun&il of /inisters: presi es over its meetin-s: an )as t)e ri-)t to ismiss any /inister =it) t)e &onsent of t)e !oun&il of Representatives? <63

Role in hydrocarbons industry

4)ile t)e (rime /inisterMs Offi&e is not ire&tly involve in t)e ay-to- ay mana-ement of t)e oil an -as in ustry: it is tas#e =it) monitorin- evelopments an raisin- issues for is&ussion at meetin-s 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 ne-otiations bet=een politi&al blo&s =it) re-ar s to propose le-islation relate to t)e oil in ustry? <6<
<62 5$,D! an !entral Ban# of "raq /eet to *is&uss 0e= !entral Ban# CF an $uture Arran-ements for *evelopment $un for "raq5: 4inancial Services ?olunteer Cor1s: 14 Bune 2>1>? <63 5"raqA Transparen&y ,naps)ot5: !evenue "atch Institute: retrieve 25 0ovember 2>11? <64 5"ntro u&tion5: United *ations Com1ensation Commission: retrieve 25 0ovember 2>11? <65 5"A/B $un for "raqA (ress Release5: Ira' Business *e&s: 5 Buly 2>11? <66 5,e&urity !oun&il =el&omes "raqMs assumption of oversi-)t over evelopment fun 5: United *ations *e&s Service: 3> Bune 2>11? <63 5"raqi !onstitution5: United *ations Assistance (ission for Ira': retrieve 1; *e&ember 2>11? <6; 5Oil an -as &ontra&ts in "raq5: "ho9s "ho Legal: Buly 2>1>? <6< 5AnalysisA Oil la= issent s)o=s &ra&#s in /ali#i5s -overnment5: Ira' 0il !e1ort: ; ,eptember

16<

T)e (rime /inisterMs A visory Boar 6(/AB7: )ea e by former Oil /inister T)amir .)a ban: is tas#e =it) formulatin- "raqMs lon--term strate-i& oil poli&y? <3><31 T)e (/ABMs ener-y a visor: Ali al-/as)at: is responsible for liaisin- =it) international or -anisations in&lu in- t)e 4orl Ban#?<31 ,tartin- in $ebruary 2>11: a 5visa bla&#out5 t)at affe&te a variety of employees of international oil &ompanies: from labourers to prospe&tive investors: mana-ers to te&)ni&ians =it) spe&ialise s#ills: =as reporte in /ar&) of t)e same year by Ira' 0il !e3 1ort journalists? T)is =as base on t=o anonymous sour&es: as t)e result of a e&ision by t)e (rime /inister5s Offi&e t)at appli&ations for visas s)oul -o t)rou-) t)emselves an not t)e "raqi /inistry of "nterior?<32 0fficial &ebsite$ ===?pmo?iq

8urdistan Re5ional 0overnment 8R0!

T)e %rbil-base 1ur istan Re-ional .overnment 61R.7 is t)e offi&ial an emo&rati&ally ele&te e'e&utive bo y of t)e 1ur istan Re-ion: also #no=n as "raqi 1ur istan? An autonomous re-ion of "raq sin&e 1<<2: "raqi 1ur istan re&onstitute itself as a fe eral re-ion upon t)e ratifi&ation of t)e ne= 2>>5 "raqi &onstitution? <33 Rat)er t)an t)e te&)ni&al servi&e a-reements offere by t)e &entral -overnment: t)e 1R. instea offers pro u&tion s)arin- &ontra&ts 6(,!s7 to investors in t)e re-ion: per &eive by many as more -enerous to international &ompanies: a&&or in- to in ustry analyst *ere# Bro=er?<34

0overnment structure and leadership

T)e (resi ent of t)e 1R.: =)o ele-ates e'e&utive po=ers to t)e &abinet: is ire&tly ele&te ?<35 T)e &abinet sele&ts t)e )ea of t)e le-islature: t)e (rime /inister?<36 1R. (resi ent /assou BarEani =as ele&te in 2>>5 <33 an re-ele&te in 2>>< =it) 31 per&ent of t)e vote? (rior to t)is )e =as lea er of t)e 1ur istan *emo&rati& (arty 61*(7: one of t)e main parties &ontrollin- t)e re-ion sin&e 1<<1? *urin- t)e 1<<>s t)e 1*( =as at =ar =it) t)e ot)er lea in- politi&al fa&tion in t)e re-ion: t)e (atrioti& +ni2>11? <3> 5F8AAT)amir Abbas .)a )ban5: Society of Petroleum )ngineers: retrieve 1; *e&ember 2>11? <31 5"raq Outlines Oil (ro u&tion ,trate-y To 2>3>5: )nergia, 2> O&tober 2>11? <32 5"raq %ntry Disa Fua-mire Blame on al-/ali#i5: Ira' Business *e&s: 23 /ar&) 2>11? <33 5About t)e 1ur istan Re-ional .overnment5: +urdistan !egional overnment, etrieve 1; 0ovember 2>11? <34 5About t)e 1ur istan Re-ional .overnment5: Petroleum )conomist: 13 *e&ember 2>12? <35 51ur isan Re-ion (resi en&y5: +urdistan !egional overnment: retrieve 23 0ovember 2>11? <36 5(rime /inister ,ali) ple -es rene=al as &abinet is s=orn in5 +urdistan !egional overnment, 2< O&tober 2>><? <33 5/asou BarEani5: +urdistan !egional overnment, 23 Bune 2>>3?

13>

on of 1ur istan 6(+17: un er t)e lea ers)ip of Balal Talabani? <3; Talabani =ent on to be ele&te (resi ent of "raq in 2>>5?<3< As of *e&ember 2>12 0e&)irvan BarEani =as (rime /inister of t)e 1ur istan re-ion: a man =)o /ime ma-aEine &re ite =it) t)e -ro=in- Tur#is)-1ur is) rappro&)ement?<;> T)e re-ion5s 0atural Resour&es /inister as of *e&ember 2>12 =as As)ti Ca=rami?<34 T)e "raqi 1ur istan (arliament e'amines proposals for ne= la=s: s&rutinises -overnment poli&y an a ministration: an ebates major issues t)at &on&ern t)e re-ion? Alt)ou-) t)e re-ional (arliament s)ares le-islative po=er =it) t)e "raqi fe eral -overnment: priority is -iven to re-ional la=s in matters t)at relate to &ustoms: ele&tri& ener-y 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 1R. )ave eteriorate : provo#e by &ontra&ts si-ne bet=een oil majors an t)e 1R.: vie=e as ille-al by t)e -overnment in Ba-) a ? A&&or in- to me ia 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 si es: parti&ularly t)e ama-e relations)ip bet=een 0ouri al-/ali#i an /assou BarEani: a--ravate by strin-s of a&&usations?<;2 Asi e from t)is: lea ers in Ba-) a )ave ispute t)e ri-)t for t)e 1ur s to e'port t)e oil t)ey pro u&e: outsi e of t)e &entrally &ontrolle infrastru&ture? $urt)ermore t)e 1R. &laims &ontrol over lar-e areas of ispute territories an )as enliste international oil &ompanies 6"O!s7 to e'plore an pro u&e in t)ese areas: =)i&) overlap t)e boun aries of 0ineve): 1ir#u#: ,ala in an *iyala provin&es? "n late 2>12 Ira' 0il !e3 1ort reporte t)at t)e &entral -overnment an t)e 1ur s &ame &lose to open &onfli&t =)en bot) eploye troops near t)e &onteste bor er area bet=een nort) an sout): on territory =)ere +, &ompanies %''on/obil an Cunt Oil )a a-ree to rill? Co=ever offi&ials on bot) si es of t)e &onfli&t )ave sai t)at =ar is not in eit)er si e5s 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 si es a-ree to -ra ually =it) ra= t)eir troops from t)e ispute territories? Co=ever a&&or in- to Tur#ey5s Hurriyet %aily *e&s: t)e &las) raise questions about Ba-) a Ms fe eral unity =it) t)e 1R.? <;4
<3; 5/assou BarEani - $ast $a&ts5: C**: 14 *e&ember 2>12? <3< 5Balal Talabani5: *e& .ork /imes: 1; *e&ember 2>12? <;> 5An "ntervie= =it) 0e&)irvan BarEaniA 4ill T)ere Be an "n epen ent 1ur istanH5: /ime: 21 *e&ember 2>12? <;1 5T)e 1ur istan (arliament5: +urdistan !egional overnment, retrieve 3> 0ovember 2>>6? <;2 5Ba-) a -1R. Relations .o from Ba to 4orse5: Al3(onitor: 16 *e&ember 2>12? <;3 5*ispute oil rillin- &oul provo#e =ar5: Ira' 0il !e1ort: 12 *e&ember 2>12? <;45Ba-) a : 1R. a-ree to =it) ra= sol iers from ispute area5: Hurriyet %aily *e&s: 15 *e&ember 2>12?

131

0fficial &ebsite$ ===?#r-?or-

132

Key In"rastructure
Overvie$ of Infrastructure in Iraq
Re&urrin- &onfli&t in "raq )as left mu&) of t)e e'istin- ener-y infrastru&ture eit)er ama-e or in a poor state of repair? T)e "nternational %ner-y A-en&y 6"%A7 earmar#e t)e state of "raq5s ener-y transport: stora-e an e'port infrastru&ture as a serious &onstraint to pro-ress in t)e ener-y se&tor? <;5 "n or er to rea&) its state pro u&tion tar-ets: "raq =ill )ave to e'pan its e'port &a pa&ity? By la= t)e &ountry5s oil infrastru&ture is in t)e )an s of t)e state? *eputy (rime /inister for ener-y Cussein ,)a)ristani )as sai t)at +, G5>> billion of investment =ill be nee e to lift oil pro u&tion in line =it) tar-ets? <;6 A&&or in- to t)e "%A: suffi&ient oil stora-e an transportation &apa&ity =ill also be nee e 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 esi-n of "raq5s refinery infrastru&ture? 4)ereas mo ern refineries pro u&e ;> to <> per&ent of a barrel of oil into li-)t or me ium istillates: "raq5s refineries prou&e bet=een 5> an 55 per&ent: t)us &reatin- lar-e amounts of )eavy fuel oil? <;3 "raq5s prin&ipal refineries are at Basra: *aura: an Baiji? T)e &ountry5s refineries are ivi e bet=een t)ree operatin- &ompaniesA t)e 0ort) Refineries !ompany 60R!7: t)e /i lan Refineries !ompany 6/R!7: an t)e ,out) Refineries !ompany 6,R!7? <;3 T)e fa&ilities at Baiji: *aura an Basra a&&ount for aroun 3> per&ent of total output? <;5 T)e &ountry5s 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 6bp 7: )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&) 36>:>>> bp by early 2>13?<;; But estimates iffer an a&&or in- to a +, iplomati& &able from early 2>><: esi-n refinin- &apa&ity in "raq stoo at appro'imately 34>:>>> bp ?<;3 A&&or in- to a lea#e +, iplomati& &able from 2>><: plans to mo ernise an e'pan "raq5s refineries )ave move slo=ly ue to iffi&ult &ontra&tin- pro&e ures: a s)orta-e of s#ille staff an unreliable ele&tri&ity supplies ma#in- operation of equipment unsafe?<;3 T)e &ountry is also plannin- to buil four ne= refineries at a &ost of aroun G25 billion: in&lu in- a 3>>:>>> bp plant in 0asiriya) an a 14>:>>> bp plant
<;5 5"raq %ner-y Outloo#5: International )nergy Agency: 12 0ovember 2>12? <;6 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12? <;3 5"raqi Refineries (resent An $utur5:e "ikileaks: ; Banuary 2>><? <;; 5"raq (lans to Boost Oil-Refinin- !apa&ity by 23V %arly 0e't 9ear5: Bloomberg: 4 O&tober 2>12?

133

in 1arbala?<;< "n t)e nort)ern 1ur istan re-ion t)e majority of offi&ial refinin- &apa&ity is provi e by t)e 1)abat refinery near %rbil <<> 6&apa&ity of 4>:>>> bp in 2>1>7? <<1 Ot)er refineries in t)e re-ion are BaEian in ,ulaymaniya) an 1at in 1ir#u#? Ira' 0il !e1ort estimate in 2>12 t)at t)e re-ion5s 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 a ition: in 2>12 t)ere =ere an estimate ;>-1>> so-&alle 5toppin- plants5 available to t)e 1R.: 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 1)or al-Amaya? +p until t)e &onstru&tion of t=o ne= e'port terminals at 1)or al-Amaya in /ar&) 2>12: Basra =as t)e &ountry5s main e'port terminal: =it) t)e terminal at 1)or al-Amaya )an lin- only small volumes? <<2 T)e %"A5s 2>12 report notes t)at t)e la&# of suffi&ient stora-e in t)e sout) of "raq is a parti&ular problem: meanin- t)at any elays or =eat)er-relate interruptions to loa in- tan#ers at t)e offs)ore fa&ilities &an lea ire&tly to a pro u&tion s)ut- o=n? 0e= stora-e &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&&or in- to Ira' 0il !e1ort: "raq5s &ru e pipelines are lon- over ue for inspe&tion an =oul nee to be up-ra e or repla&e if "raq is to su&&ee in in&reasin- its oil e' ports? T)e &ountry ur-ently nee s to e'pan its &apa&ity an fin alternative e'port routes: as t)e primary e'port route t)rou-) Basra is 5lo-isti&ally &onstraine 5 to aroun 5 million barrels per ay 6bp 7 of e'ports: =)ile "raq is loo#in- to in&rease prou&tion &apa&ity to ; million bp by 2>1;?<<4 Asi e from t)e e'port terminals at Basra an 1)or al-Amaya: "raq5s ot)er prin&ipal e'port route is t)e nort)ern pipeline route to !ey)an? A&&or in- to t)e /inistry of Oil t)e ma'imum &apa&ity alon- t)is route in Buly 2>12 =as 6>>:>>> bp : far belo= t)e 5nameplate &apa&ity5 of 1?6 million bp ? A&tual flo= rates avera-e just over 3>>:>>> bp ?<<3 T)e pipeline system from "raq to Tur#ey suffere mu&) ama-e urin- "raq5s =ars: &ausin- a fall in &apa&ity? "raq5s reversible nort)-sout) pipeline: t)e ,trate-i& (ipeline =as also ama-e by t)e &onfli&t an &an &arry only a fra&tion of its 1?4 million bp &a<;< 5"raq (lans to Boost Oil-Refinin- !apa&ity by 23V %arly 0e't 9ear5: Bloomberg: 4 O&tober 2>12? <<> 51R. oil eals buoye by refinery plan5: Ira' 0il !e1ort: 2< /ar&) 2>12? <<15 1ur is) Refinery to ,tart ,ellin- (etrol5: Ira' Business *e&s: ; *e&ember 2>1>? <<2 5"raq ramps up its &ru e e'ports5: Lloyd9s List Intelligence: 2> ,eptember 2>12? <<3 5"raq %ner-y Outloo#5: International )nergy Agency: 12 0ovember 2>12? <<45"raq sets Bor an pipeline into motion5: Ira' 0il !e1ort: 2 Banuary 2>13?

134

pa&ity?<<5 "raq )as announ&e plans in t)e past to rebuil its national strate-i& pipeline net=or#: &allin- for e'pan in- &apa&ity into Tur#ey an openin- routes to bot) Bor an 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 tar-et of &reatin- 1 million bp of e'port &apa&ity to Bor an: via a 1:6;> #ilometre pipeline from Basra: up to Ca it)a an into Bor an? T)is =oul be t)e first &ross-bor er pipeline &onstru&te sin&e t)e "raq (ipeline t)rou-) ,au i Arabia 6"(,A7 =as built in t)e 1<;>s an later e'propriate by t)e ,au is?<<6 T)e "raq (ipeline t)rou-) ,au i Arabia 6"(,A7 remaine out of operation in early 2>13 espite tal# of rea&tivation?<<3

Other pro;ects
,in&e 2>>; t)e "raqi -overnment )as also been pursuin- a proje&t to &apture an use surplus -as pro u&e at t)e &ountry5s sout)ern fiel s: in &ollaboration =it) oil major ,)ell: #no=n as t)e ,out) .as +tilisation (roje&t 6see separate arti&le7? <<;

Refineries
,ai;i Refinery
Baiji: lo&ate rou-)ly 1;> #ilometres nort) of Ba-) a : is "raq5s lar-est refinery <<< an supplies 11 "raqi provin&es =it) refine petroleum pro u&ts? 1>>> "t =as built in 1<;21>>1 an is part of a &omple' t)at in&lu es a t)ermal po=er plant: also t)e lar-est in t)e &ountry: =)i&) is a major &ontributor to Ba-) a 5s ele&tri&ity supply? 1>>2 Baiji is operate by t)e t)e 0ort) Refineries !ompany? 1>>3 A&&or in- to t)e "%A in 2>12: Baiji: li#e ot)er refinin- infrastru&ture in "raq: =as in ur-ent nee of up-ra in-? 1>>4

<<5 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12? <<6 5"raq sets Bor an pipeline into motion5: "ra' 0il !e1ort: 2 Banuary 2>13? <<3 5!ir&umventin- t)e ,trait of CormuE5 Bottlene&#5: Atlantic Sentinel: 2> *e&ember 2>11? <<; 5,)ell si-ns _11bn eal to fuel "raq5s po=er stations =it) -as5: uardian: 23 0ovember 2>11? <<<5 All units at "raqMs Baiji oil refinery re-starte 5: Arab *e&s: 25 Bune 2>11? 1>>> 5+(*AT% 2-"raq Baiji refinery says restarts partial operation5: !euters: 2; $ebruary 2>11? 1>>1 5"raq5s Baiji refinery 5ba&# to normal55: 4rance :A: 4 /ar&) 2>11? 1>>2 5Bayji PBeijiQ5: lobal Security: retrieve 14 *e&ember 2>11? 1>>3 5T)e bi--est 25 refineries in t)e /i le %ast5: Arabian 0il and as: retrieve 14 *e&ember 2>11? 1>>4 5"raq %ner-y Outloo#5: I)A: 12 0ovember 2>12?

135

Capacity
A&&or in- to a lea#e +, iplomati& &able: t)e esi-n &apa&ity at Basra in 2>>< =as 31>:>>> barrels per ay 6bp 7: a&&ountin- for 4> per&ent of t)e &ountry5s overall esi-n &apa&ity? Co=ever t)e istin&tion is )i-)li-)te bet=een I esi-n &apa&ityI an Ioperational &apa&ityI: notin- t)at t)e BOR )as an operational &apa&ity of appro'imately 35 per&ent of its esi-n &apa&ity: lar-ely ue to iffi&ulties in a&quirin- spare parts for maintenan&e: ama-e &ause by unreliable ele&tri&ity supplies: t)e lon--term effe&ts of t)e san&tions perio : an a s)orta-e of )i-)ly s#ille =or#ers? As of early 2>>< total operations &apa&ity =as appro'imately 65:>>> bp 6or 1> per&ent7 lo=er t)an esi-n &apa&ity?1>>5 As of mi -2>11: t)e Baiji refinery =as fun&tionin- at about 3> per&ent of its 31>:>>> barrel per ay 6bp 7 &apa&ity: a&&or in- to Arab *e&s? Co=ever ot)er press sour&es estimate total &apa&ity at t)e lo=er fi-ure of 3>>:>>> bp ? 1>>6 Co=ever t)is &oul be a result of a la&# of &larity over pro u&tion levels an esi-n &apa&ity? On 22 0ovember 2>11 t)e Bapanese (rime /inister 9os)i)i#o 0o a announ&e a loan of G35 million for "raq to up-ra e en-ineerin- servi&es to mo ernise t)e Baiji refinery: an on 2; 0ovember +,-base firm Coney=ell announ&e it )a obtaine a &ontra&t to up-ra e t)e refinery5s &ontrol an pro&ess system? 1>>3

%ecurity
T)e refinery =as )eavily ama-e urin- bombin- in 1<<1 .ulf 4ar? "n t)e years follo=in- t)e 2>>3 invasion Baiji5s supply &)ain: espe&ially a pipeline &arryin- &ru e oil from t)e super-iant 1ir#u# fiel : =as t)e subje&t of repeate atta&#s by insur-ents an or-anise &rime syn i&ates? T)e refinery itself =as also tar-ete : an pro u&tion =as interrupte on numerous o&&asions? 1>>; Baiji =as s)ut o=n a-ain in late $ebruary 2>11 =)en insur-ents etonate several bombs: #illin- t=o people an ama-in- several units? T)e atta&# )alte t)e pro u&tion of aroun 15>:>> bp of petroleum pro u&ts:1>>< but pro u&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 6BOR7 is lo&ate in t)e far sout) of t)e &ountry about 545 #ilometres 6#m7 from Ba-) a an 55 #m from t)e (ersian .ulf? Basra is "raq5s primary terminal point for oil pipelines an is also t)e
1>>5 5"raqi Refineries (resent An $uture5: "ikileaks: ; Banuary 2>><? 1>>6 5Baiji refineryMs &apa&ity rea&) 3>>:>>> barrels per ay J ministry5: Ira'i *e&s: 21 /ar&) 2>11? 1>>3 5Coney=ell Cas G36> /ln Of !ontra&ts "n "raq - %'e&utive5: "all Street Journal 2; $ebruary 2>11? 1>>; 5"raq (ipeline 4at&)5 Institute for the Analysis of lobal Security: 23 /ar&) 2>>;? 1>>< 5Bombin- *ama-es "raqMs 2ar-est Oil Refinery5: *e& .ork /imes: 26 $ebruary 2>11? 1>1> 5"raqMs Baiji Refinery +nit to Restart 0e't 4ee#: /inistry ,ays5: Bloomberg: 2; $ebruary 2>11?

136

site of "raq5s &)ief e'port terminal? 1>11 T)e refinery be-an pro u&tion in 1<341>12 an =as )eavily ama-e in t)e 1<;>-1<;; "ran-"raq =ar? T)e &omple' is o=ne an operate by "raq5s ,out) Refineries !ompany?1>13

Capacity
A&&or in- to a lea#e +, iplomati& &able: I esi-n &apa&ityI at t)e Basra refinery in 2>>< =as at 16>:>>> barrels per ay 6bp 7? Co=ever operational &apa&ity =as appro'imately 15 per&ent of t)is fi-ure? 1>14 "n ot)er press sour&es t)ere are some is&repan&ies in t)e &apa&ity fi-ures &ite : =it) many sour&es &laimin- 14>:>>> bp of pro u&tion: an Arabian 0il and as &itin- a fi-ure of 21>:>>> bp ?1>151>161>13 "n Buly 2>11: t)e +, Tra e an *evelopment A-en&y si-ne an a-reement =it) t)e ,out) Refineries !ompany for a -rant of G5>2:3<; to &on u&t a feasibility stu y for t)e up-ra e an re)abilitation of t)e refinery? T)e refinery5s mo ernisation is inten e to support t)e "raqi /inistry of OilMs -oal to rea&) a &apa&ity of 12 million barrels per ay in pro u&tion by 2>2>?1>1;

Daura Refinery
T)e *aura refinery =as built in 1<53 an be-an operations in 1<55? 1>1< "t is lo&ate 2> #ilometres sout)-=est of Ba-) a ? Operate by "raq5s /i lan Refineries !ompany 6/R!7:1>2> t)e *aura refinery is "raq5s se&on -lar-est? 1>21 T)e refinery itself an pipelines supplyin- it =it) &ru e oil =ere atta&#e numerous times by insur-ents bet=een 2>>3 an 2>>;? 1>22

Capacity
*aura5s refinin- &apa&ity )as un er-one major flu&tuations? "t =as e'pan e in 1<<6 to nearly 13>:>>> barrels per ay 6bp 7: but its &apa&ity )a fallen to 11>:>>> bp by
1>11 5Basra)5: lobal Security: retrieve 5 Banuary 2>12? 1>12 5Comepa-e5: South !efineries Com1any: retrieve 5 Banuary 2>12? 1>13 5Basra) Refinery5: A Barrel 4ull Retrieve 5 Banuary 2>11? 1>14 5"raqi Refineries (resent An $uture5: "ikileaks: ; Banuary 2>><? 1>15 5"raq eyes up-ra e for Basra refinery5: "orld /ribune: 25 /ay 2>12? 1>16 5,)a= to !on u&t $easibility ,tu y to Basra Refinery5: ulf 0il and as: 13 *e&ember 2>11? 1>13 5Top 22 Re-ional *o=nstream (roje&ts5: Arabian 0il and as: 2< O&tober 2>12? 1>1; 5+nite ,tates approves -rant for Basra) refinery feasibility stu y5: US )mbassy Baghdad: 21 Buly 2>11? 1>1< 5*aura Refinery %'pansion On ,&)e ule5: Business (onitor International: 26 O&tober 2>><? 1>2> 5"raq - T)e *aura Refinery5: APS !evie& %o&nstream /rends: 11 /ay 2>11? 1>21 5Bombs in *aura refinery intensify se&urity s&are5: Ira' 0il !e1ort: 13 Bune 2>11? 1>22 5"raq (ipeline 4at&)5: Institute for the Analysis of lobal Security : 23 /ar&) 2>>;?

133

2>>5?1>23 A lea#e +, iplomati& &able from Banuary 2>>< &laime a 5 esi-n &apa&ity5 of <>:>>> bp : but note t)at t)e refinery re-ularly operate at 5> per&ent &apa&ity ue to ina equate supplies of &ru e oil: as t)e ,trate-i& (ipeline =as unable to fuel all of t)e users alon- its route?1>24 Bet=een 2>>< an 2>11: t)e refinery5s &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 1AR .roup: %rbil refinery is t)e first major refinery in t)e nort)ern 1uristan re-ion an t)e first private se&tor refinery in "raq? "t re&eive its first oil in 2>><? T)e oil is transporte via pipeline from t)e pro&essin- station at t)e 1)urmala *ome?1>23 $ee sto&# for t)e %rbil refinery &omes from t)e ispute 1ir#u# fiel ? 1>2; T)e refinery proje&t is a #ey part of e'pansion plans in t)e 1ur istan re-ion in or er to absorb in&reasin- pro u&tion levels un er t)e 1ur istan Re-ional .overnment 61R.7?1>2; T)e +15s 4inancial /imes es&ribe t)e proje&t as a Isymbol of private: lo&al investment in 1ur istan - an of t)e re-ion5s ambitions?I 1>2< !onstru&tion ori-inally be-an on t)e refinery in 2>>5 un er a &ontra&t bet=een t)e "r aqi /inistry of Oil an t)e "raqi /inistry of "n ustry an /inerals? Co=ever follo=inelays an bu -et iffi&ulties: t)e 1R. intervene in late 2>>; an a=ar e t)e &onstru&tion &ontra&t to t)e 1AR .roup?1>23

Capacity
A&&or in- to t)e 1AR .roup: t)e &omple' )a an initial &apa&ity of 2>:>>> barrels per ay 6bp 7? "n late 2>11 t)e refinery =as pro&essin- 4>:>>> bp of &ru e: but follo=in- an e'pansion plan =as e'pe&tin- to nearly triple t)e fi-ure to 11>:>>> bp by late 2>12? 1AR foun er BaE 1arim 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 nee s?1>2<

1>23 5"RAF - T)e *aura Refinery5: APS !evie& %o&nstream /rends, < /ay 2>>5? 1>24 5"raqi Refineries (resent An $uture5: "ikileaks: ; Banuary 2>><? 1>25 5"raq - T)e *aura Refinery5: APS !evie& %o&nstream /rends, 11 /ay 2>11? 1>26 5"raq (lans to Boost Oil-Refinin- !apa&ity by 23V %arly 0e't 9ear5: Bloomberg: 4 O&tober 2>12? 1>23 5%rbil Refinery5: +A! rou1: retrieve 15 Banuary 2>13? 1>2; 51R. oil eals buoye by refinery plan5: Ira' 0il !e1ort: 2< /ar&) 2>12? 1>2< 5Refinin-A *omesti& pro&essin- &apa&ity is risin- qui&#ly5: 4inancial /imes: 3 *e&ember 2>11?

13;

Terminals
8hor al.Amaya Oil 9erminal 8AAO9!
T)e 1)or al-Amaya oil terminal 61AAOT7: alon- =it) "raq5s Basra Oil Terminal: is use to e'port 5Basra blen 5 &ru e?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 !ru e pro u&e at "raq5s sout)ern fiel s: or pro&esse at omesti& refineries: is sent onto ons)ore stora-e fa&ilities an e'porte into t)e .ulf via 1AAOT? A&&or in- t)e "nternational %ner-y A-en&y 6"%A7 analysis from a 2>12 report: 113:>>> barrels per ay 6bp 7 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 sin-le point moorin- 6,(/s7?1>33

Capacity
4)en t)e 1AAOT 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 6bp 7? 1>34 By 2>11 it still )a an effe&tive &apa&ity of 3>>:>>> bp ?1>35

%ecurity
A&&or in- to t)e +1 /inistry of *efen&e: sin&e 2>>3 +1: +, an Australian naval for&es =ere &ommitte to almost roun -t)e-&lo&# patrols of t)e =aters aroun 1)or al-Amaya: until responsibility =as )an e over to "raqi for&es?1>36 "n a 2>>< +, lea#e iplomati& &able: it =as reporte t)at an "ranian letter &laimint)at t)e 1AAOT =as lo&ate in "ranian territorial =aters )a alarme "raqi offi&ials? 1>33

,asra Oil 9erminal A,O9!

T)e al-Basra Oil Terminal 6ABOT7: formerly #no=n as /ina al-Ba#r: =as built in 1<35 by t)e "raq 0ational Oil !ompany? "t lies some 5> #ilometres off t)e "raqi &oast? 1>3;
1>3> 5"raqi Oil "n ustry5: IAS rou1: /ar&) 2>11? 1>31 5Oil /inister !ompla&ent About +pstream (ro u&tion (lans5: "ikileaks: < April 2>><? 1>32 5%'&avatin- a pat) t)rou-) "raqMs une'plo e or nan&e5: 0il 0nline: < ,eptember 2>11? 1>33 5"raq %ner-y Outloo#5: International )nergy Agency: 2>12? 1>34 5"raqi Ameri&an !)amber of !ommer&e an "n ustry5: IAS rou1: /ar&) 2>11? 1>35 5"raqi Oil "n ustry5: IAS rou1: /ar&) 2>11? 1>36 52ast "raq oil terminal patrol for Royal 0avy5: U+ (inistry of %efence: 25 Banuary 2>11? 1>33 5Oil /inister !ompla&ent About +pstream (ro u&tion (lans5: "ikileaks: < April 2>><? 1>3; 5Al Basra) Oil Terminal: S1ecial Ins1ector eneral for Ira' !econstruction : 26 April 2>>3?

13<

Capacity
As of mi -2>11 ABOT )a an effe&tive e'port &apa&ity of about 1?5 million barrels per ay 6bp 7 of oil: )an lin- about ;> per&ent of "raq5s e'ports? 1>3< Co=ever in ,eptember 2>1> "raqMs &abinet approve a +, G333 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 sin-le-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: brin-in- total e'port &apa&ity out of t)e sout) to 4?5 million bp ?1>41

Impact of conflict
T)e terminal5s infrastru&ture )as been ba ly ama-e by years of =ar an instabil ity?1>42 /ajor e'pansion =or# =as stalle by t)e outbrea# of t)e "ran-"raq 4ar in ,eptember 1<;>? T)e terminal =as )eavily ama-e in t)e fi-)tin- an e'ports i not resume until t)e =ar en e in 1<;;-<?1>43 T)e Basra terminal suffere furt)er serious ama-e urin- t)e se&on .ulf 4ar in Banuary 1<<1 an e'ports =ere )alte &ompletely? "raq mana-e 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 1ir#u#-Banias pipeline =as first brou-)t online in 1<52 an transporte oil from 1ir#u# in &entral-nort)ern "raq to t)e port of Banias in ,yria? A&&or in- to Pi1elines International: t)e buil in- of t)e pipeline mar#e a si-nifi&ant moment in t)e evelopment of "raq5s petroleum in ustry?1>45 T)e pipeline stoppe operatin- in 2>>3 urin- t)e +,-le invasion of "raq an as of late 2>12 remaine &lose ?1>46
1>3< 5"raqi Oil "n ustry: IAS rou1: /ar&) 2>11? 1>4> 5G333m !ontra&t A=ar e for Basra Oil Terminal5: Ira' Business *e&s: 2; ,eptember 2>1>? 1>41 54ill "raq be t)e ne't oil superpo=erH5? Petroleum )conomist: 12 *e&ember 2>12? 1>42 5A-in- Oil Terminal Dital To "raq5s %&onomy5: *P!: 2> Bune 2>>< 1>43 5"raqMs Oil %'port Outlets: (iddle )ast )conomic Survey: 3> 0ovember 2>><? 1>44 5Tas# $or&es Bolster O"$: O%$ /aritime ,e&urity: "his1er"ave: 16 $ebruary 2>>6? 1>45 5T)e 1ir#u# J Banias (ipeline5: Pi1elines International, /ar&) 2>11? 1>46 5,yria Oil .as (rofile5: A Barrel 4ull, retrieve 6 Banuary 2>11?

1;>

Capacity
T)e 1ir#u#-Banias pipeline )a a &apa&ity of 3>>:>>> barrels per ay 6bp 7 prior to 2>>3? Co=ever its ori-inal &apa&ity =)en built in t)e 1<5>s =as 1?4 million bp ? 1>43

6istory
"n 1<5> t)e "raq (etroleum !ompany 6"(!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 ama-e by t)e ,yrian army in response to t)e An-lo-$ren&) seiEure of t)e ,ueE !anal Eone in 1<56: but =as later repaire ? "n 1<32 "raq nationalise t)e "(!: promptin- ,yria to nationalise t)e "(!5s assets in ,yria: in&lu in- t)e ,yrian se&tion of t)e 1ir#u#-Banias pipeline? 1>45 T)e pipeline =as &lose for mu&) of t)e 1<3>s an 1<;>s: but in t)e 1<<>s it =as reopene so t)at "raq &oul bypass t)e +0 oil embar-o? At t)e time: reports put "raq5s e'ports t)rou-) t)e line at about 15>:>>>-2>>:>>> bp ? 1>43 But t)e pipeline =as bombe by +, for&es urin- t)e invasion t)at remove ,a am Cussein in 2>>3: stoppin- t)e flo= of oil? "n 2>>3 it =as reporte t)at ,yria an "raq =ere is&ussin- plans to revive t)e pipeline: )o=ever on-oin- se&urity issues stalle t)e eal a&&or in- to t)en Oil /inister ,)a)ristani?1>4; Reports su--este t)at Russian firm ,troytrans-aE )a se&ure a &ontra&t for repairs: )o=ever !)ristop)er Blan&)ar reporte t)at in 2>>3 t)e ,yrian -overnment =as see#in- alternative forei-n firms? "n April 2>>< ,yria an "raq a-ain announ&e t)at t)e t=o si es )a rea&)e an a-reement to repair t)e line: )o=ever t)e eal =as not follo=e t)rou-)?1>4< "n April 2>11: ,troytrans-aE reporte t)at "raq =as finalisin- t)e terms of en-a-ement for a &ontra&t to &onstru&t t=o &ru e 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?35 million bp ? T)e first pipeline =oul transport )eavy &ru e from t)e nort)ern Baiji area: potentially in&lu in- oil from /ajnoon: Calfaya: Ba ra: A) ab an t)e %ast Ba-) a fiel s: as =ell as 0ajma) an Fayara? T)e se&on =oul follo= t)e route of t)e e'istin- ama-e 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-) ,au i Arabia 6#no=n as "(,A7 travels t)rou-) ,au i Arabia
1>43 50O! lets &ontra&t for 1ir#u#-Banias oil line repair5: Pi1elines International, 4 Buly 2>>;? 1>4; 5"raq says oil flo=s t)rou-) ,yria epen on se&urity5: !euters: 2> Au-ust 2>>3? 1>4< Blan&)ar : !)ristop)er 5 "raqA Re-ional (erspe&tives an +, (oli&y5: Congressional !esearch Service: 6 O&tober 2>><? 1>5> 5"raq $inalises Ten er Terms for ,yria %'port (ipelines5: Stroytransga#, 21 April 2>11?

1;1

to t)e Re ,ea (ort of /u5ajiE: just nort) of 9anbu? "(,A )as suffere several &losures 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 stora-e an loa in- fa&ilities for )an lin- tan#ers up to 4>>:>>> tons?1>52

Capacity
"(,A )as a esi-n &apa&ity of 1?65 million barrels per ay 6bp 7? 1>52

6istory
"(,A =as lai in t)e 1<;>s in or er to iversify e'port routes after oil tan#ers =ere atta&#e in t)e .ulf by bot) si es urin- t)e "ran-"raq =ar? Co=ever it )as not &arrie "raqi &ru e sin&e ,a am Cussein inva e 1u=ait in 1<<>: &ausin- relations bet=een t)e t=o &ountries to eteriorate? ,au i 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&&or in- to former "raqi Oil /inister "ssam al-!)alabi: no attempts =ere ma e to re&over t)e pipeline system follo=in- t)e 2>>3 invasion: an politi&al relations bet=een "raq an ,au i Arabia remaine sour?1>54 "n ,eptember 2>>3: unname offi&ial sour&es state t)at ,au i Arabia )a e&i e to reopen t)e "(,A pipeline to allo= "raqi oil to be e'porte from t)e &ountry5s sout)ern oilfiel s to 9anbu?1>55 Co=ever by O&tober of t)e same year: a ,au i Aram&o offi&ial state t)at "raqis I on5t #no= =)at t)ey are tal#in- about??? t)e pipeline is not in a us able form be&ause of its lon--term an su en &losure?I1>56 "n *e&ember 2>11: after "ranian aut)orities t)reatene to &lose t)e (ersian .ulf to international oil tra e: &onsi eration 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 ,au i Arabia? T)e "(,A pipeline an t)e Trans-Arabian (ipeline 6also #no=n as Tapline7 &oul &arry t)e equivalent of up to 2 million bp to ports on t)e Re ,ea an /e iter ranean &oasts?1>53 0onet)eless "raq5s se&urity &on&erns: =)i&) in&lu e prote&tion of t)reatene oil infrastru&ture an reserves: =oul also nee to be &onsi ere before any e&ision to reopen t)e "(,A pipeline &oul be su--este as a viable option: a&&or 1>51 5%ner-y (rofile of "raq5: )ncyclo1edia of )arth: 3 Buly 2>>3? 1>52 5Ba#er "nstitute paper su--ests pipeline alternative to CormuE oil route5: Pi1eline and as Journal: /ay 2>12? 1>53 5,au i Arabia reopens oil pipeline =it) "raq to &ounter "ran CormuE t)reat5: Al Arabiya: 2< Bune 2>12? 1>54 5"raqMs Oil %'port Outlets5: (iddle )ast )conomic Survey: 3> 0ovember 2>><? 1>55 5,au i to reopen "raq pipeline5: A() Info: 11 ,eptember 2>>3? 1>56 5"raq-,au i oil pipelin is unusable5: as And 0il: 2> O&tober 2>>3? 1>53 5!ir&umventin- t)e ,trait of CormuE5 Bottlene&#5: Atlantic Sentinel: 2> *e&ember 2>11?

1;2

in- to reports by !euters?1>5;

9aq 9aq.8hurmala Oil Pipeline

T)e 35-#ilometre Taq-Taq-1)urmala pipeline: un er &onstru&tion as of late 2>12: =ill lin# t)e Taq Taq oil fiel to t)e 1)urmala ome: t)e nort)ernmost part of t)e -iant 1ir#u# fiel an t)e entry point for t)e 1ir#u#-!ey)an pipeline? T)e pipeline =as bein- built by t)e %rbil-base 1AR .roup: )as a &apa&ity of 15>:>>> barrels per ay 6bp 7 an =as ue for &ompletion in late 2>12? 1>5< "n t)e meantime &ru e for e'port =as bein- transporte by tru&#: eit)er 135 #ilometres 6#m7 to 1)urmala or 255#m to $is)#abur on t)e Tur#is) bor er? T)e proje&t &onstitutes t)e first part of a t=o-p)ase proje&t envisa-e to lin# pro u&in- fiel s in 1ur istan 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&&or in- to .enel %ner-y?1>6>

8ir=u=.Ceyhan Oil Pipeline

Transportin- oil from fiel s near 1ir#u# in "raq5s nort) to t)e Tur#is) /e iterranean port of !ey)an: t)e 1ir#u#-!ey)an pipeline spans <41 #ilometres? "t &omprises t=o parallel pipelines: t)e first of =)i&) =as &ommissione in 1<33 an t)e se&on in 1<;3?1>61 "n 2>12 t)e pipeline =as &arryin- a quarter of "raq5s &ru e e'ports 1>62 an as of 2>12 =as t)e only e'port route for "raq5s nort)ern oil pro u&tion? 1>63 T)e pipeline is operate by t)e "raqi Oil /inistry5s 0ort) Oil !ompany 60O!7? 1>64 ,in&e it rests ire&tly =it)in t)e sp)ere of influen&e of t)e 1ur istan Re-ional .overnment 61R.7 some 1ur is) observers: su&) as t)e ne=sletter +urdish As1ect: )ave ar-ue t)at t)e pipeline s)oul be automati&ally in&orporate into 1R. -eo-rap)y pursuant to Arti&le 14> of "raq5s 2>>5 &onstitution?1>65 As of *e&ember 2>11: t)e Tur#is)-ba&#e &ompany .enel %ner-y )a plans to buil a +, G4>> million oil pipeline to lin# t)e sout)ern Taq Taq fiel =it) t)e 1ir#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; 5$%AT+R%-"raq oil se&urity teste as +?,? for&es =it) ra=5: !euters: 16 *e&ember 2>11? 1>5< 51ur istan Taq Taq oil e'ports rise a)ea of ,ept ea line5: !euters: 6 ,eptember 2>12? 1>6> 5Taq Taq (,!5: enel )nergy: retrieve 3 *e&ember 2>12? 1>61 5(ipeline proje&ts in t)e /i le %ast5: Pi1elines International /ar&) 2>1>? 1>62 5$ire )alts 1ir#u#-!ey)an pipeline5: U1stream 0nline: 23 Au-ust 2>12? 1>63 5,yriaMs transit futureA all pipelines lea to *amas&usH5: 01en0il: 2; /ar&) 2>12? 1>64 5$alse Reports of ,uspension of Oil %'ports from 1ur istan5: Ira' Business *e&s 12 ,eptember 2>11? 1>65 51ir#u#-!ey)an pipeline belon-s to 1ur istan5: +urdish As1ect: 22 ,eptember 2>1>? 1>66 5$ormer B( &)ief e'plores t)e final oil frontier5: 4inancial /imes: 3 *e&ember 2>11?

1;3

Capacity
T)e pipeline )as a &apa&ity of 1?6 million barrels per ay 6bp 7 but in 2>11 =as typi& ally pumpin- aroun 5>>:>>> bp ?1>63 T)e t=o &omponent pipelines )ave iameters of 46 in&)es an 4> in&)es respe&tively: an t)e proje&t in&lu es four pump stations an t)ree stora-e tan# farms on t)e "raqi si e: =it) a meterin- station at t)e Tur#is) borer?1>6;

6istory
T)e pipeline =as ma e operational in t)e 1<;>s in part to ma#e possible t)e e'port of &ru e oil =)ile avoi in- t)e ris# of passin- t)rou-) t)e (ersian .ulf urin- t)e "ran-"raq =ar from 1<;> to 1<;;? "t )as been un er atta&# an subje&t to prolon-e &los ures for mu&) of its e'isten&e: &ontributin- to its belo=-&apa&ity operation? 1>6< T)e pipeline =as a primary tar-et of insur-ent atta&#s an sabota-e in t)e years fol lo=in- t)e +,-le invasion of "raq: 1>3> an =as offline more t)an online bet=een 2>>3 an 2>>3?1>31 ,in&e t)en it )as been s)ut o=n on several o&&asions: sometimes ue to atta&#s 6for instan&e: a bomb s)ut o=n operations for several ays in /ar&) 2>117 1>63 an at ot)er times ue to ol : eterioratin- infrastru&ture 6as in ,eptember 2>11: =)en e'ports =ere )alte be&ause of a lea#7?1>31 "n ,eptember 2>1> "raq an Tur#ey si-ne an a-reement to e'ten t)eir joint operation of t)e pipeline for 15 years an to up-ra e its &apa&ity by about 1 million bp : t)ou-) t)e "raqi Oil /inistry provi e no timetable for t)e up-ra e5s &ompletion? T)e e'tension also in&lu e amen ments 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 or ers by Tur#is) &ourts to seiEe "raqi oil? 1>32

%trate5ic Pipeline
"raq5s ,trate-i& (ipeline =as built in 1<35: &omprisin- t=o parallel 3>>:>>> barrels per ay 6bp 7 pipelines &apable of transportin- &ru e from 1ir#u# sout) to t)e Arabian (eninsula?1>33 T)e obje&tive of t)is reversible pipeline =as to -ive t)e option of pump in- 1ir#u# &ru e sout)=ar s for e'port via t)e .ulf or of pumpin- &ru e from t)e sout)ern fiel s nort)=ar s: for e'port via Tur#ey or to refineries aroun Ba-) a ? 1>34
1>63 5+(*AT% 1-Blast s)ut o=n "raq 1ir#u#-!ey)an pipeline-sour&es5: !euters < /ar&) 2>11? 1>6; 5T)e /ain "nstallations5: *orth 0il Com1any: retrieve 14 *e&ember 2>11? 1>6< 5Terror t)reatenin- %uropean ener-y5: Hurriyet %aily *e&s: 13 0ovember 2>11? 1>3> 5"raq (ipeline 4at&)5: Institute for the Analysis of lobal Security: 23 /ar&) 2>>;? 1>31 5"raq ,)uts 1ir#u#-!ey)an !ru e %'port (ipeline $ollo=in- 2ea#5: %o&nstream /oday: 2< ,eptember 2>11? 1>32 5"raq: Tur#ey si-n rene=e oil pipeline a&&or 5: !euters, 12 ,eptember 2>1>? 1>335 T)e 1ir#u# J Banias (ipeline 5 Pi1elines International: /ar&) 2>11? 1>345 "raq %ner-y Outloo#5 I)A: 12 0ovember 2>12?

1;4

4or# =as )alte on t)e se&on line urin- t)e .ulf 4ar of 1<<>-<1? 1>35 *ue to ama-e 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>34

Capacity
T)e ,trate-i& (ipeline is esi-ne to &arry ;5>:>>> bp of &ru e: but t)e "%A estimates operatin- &apa&ity to be mu&) lo=er? A&tual flo=s in Bune 2>12 =ere belo= 5>:>>> bp ?1>34

Islamic 0as Pipeline

"n summer 2>11 "ran: "raq an ,yria si-ne a memoran um on layin- a 5:>>>-#ilometre pipeline:1>36 to be name t)e "slami& .as (ipeline? T)e propose pipeline =oul transport -as resour&es from "ran5s ,out) (ars fiel an =oul e'ten t)rou-) "raq: ,yria: 2ebanon an to %urope un er t)e /e iterranean sea?1>33 "ran su--este 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>33 Co=ever 1onstantin ,imonov of t)e 0ational %ner-y ,afety $oun ation &ommente t)at Ieveryone is a=are of politi&al ris#s asso&iate =it) "ranI an t)at Imoreover: t)e &onstru&tion =ill never be-in be&ause "ran an ,yria )ave no money an forei-n finan&ial resour&es are unavailable to t)em?K1>33

Capacity
A&&or in- to t)e *eputy Oil /inister Bava O=ji: t)e propose pipeline =oul be able to pump 3?< billion &ubi& feet 6b&f7: of natural -as per ay? Ba-) a state it =ants up to 53> million &ubi& feet 6m&f7 per ay for its o=n nee s: ,yria =oul nee up to 3>6 m&f an 2ebanon up to 243 m&f? A&&or in- to +(": t)is =oul leave 2?4 b&f for possible e'port?1>3;

+rbil.Dohu= 5as pipeline

T)e %rbil-*o)u# pipeline is a proje&t un er &onstru&tion: as of mi -2>12: by t)e 1AR .roup: built to transport -as to a po=er plant in *o)u#: near t)e Tur#is) bor er? Co=1>35 5"raq 5Reopens ,trate-i& (ipeline55 Ira' Business *e&s: 6 *e&ember 2>12? 1>36 5,even "nvestors Rea y to $un "slami& .as (ipeline5 ulf 0il and as: ; Bune 2>11? 1>33 5"slami& (ipeline to &)allen-e 0abu&&o5 ?oice of !ussia: 26 Buly 2>11? 1>3; 55"slami& pipeline5 see#s %uro -as mar#ets5 UPI: 25 Buly 2>11?

1;5

ever a&&or in- to Iraq Oil Report: t)e pipeline also )as serious strate-i& impli&ations: in t)at t)e *o)u# plant nee s only aroun 1>> million &ubi& feet 6m&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&&or in- to t)e report: t)is =oul su--est t)at t)e 1R. mi-)t be loo#in- to buil a pipeline e'ten in- beyon *o)u# an nort) into Tur#ey? 1>3<

Other infrastructure projects

%outh 0as 3tilisation Pro;ect
"n ,eptember 2>>; international oil &ompany ,)ell si-ne a Cea s of A-reement 6COA7 =it) t)e "raqi /inistry of Oil to &apture some of t)e surplus -as pro u&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 5flarin-5: =)i&) is estimate to &ost +, G5 million a ay in lost fuel? ,)ell !)ief %'e&utive (eter Doser es&ribe t)e eal as )eral in- La ne= &)apter in t)e -as in ustry in "raqK?1>;> T)e joint venture &ompany establis)e to mana-e t)e proje&t =as t)e Basra .as !ompany 6B.!7: a &ollaboration bet=een t)e state-run ,out) .as !ompany 6,.!7: ,)ell an /itsubis)i !orporation? T)e o&uments finalisin- t)e &reation of t)e B.! =ere approve by t)e ener-y &ommittee at t)e !oun&il of /inisters in ,eptember 2>11: an ratifie by t)e !abinet on t)e 15 0ovember 2>11? +n er t)e a-reement: -as =as to be supplie from t)e sout)ern oil fiel s of Rumaila: @ubair an 4est Furna-1 an t)e lifetime investment =as estimate at more t)an G13 billion? 1>;1 T)e ,.! )ol s 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 su--ests t)at in &ontrast to t)e transparent an &ompetitive bi in- roun s 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 ,)ell5s prero-atives a)ea of "raq5s interests?1>;3 Operations are to be overseen by a mana-ement &ommittee &onsistin- of five representatives from t)e ministry: four from ,)ell an one from /itsubis)i? As majority s)are)ol er: t)e ,.! must approve any &ommittee e&ision? 1>;4

1>3< 5,trate-i& 1R. pipelines near &ompletion5 Ira' 0il !e1ort: 2< Au-ust 2>12? 1>;> 5,)ell si-ns _11bn eal to fuel "raq5s po=er stations =it) -as5: uardian: 23 0ovember 2>11 1>;1 5"raqMs !)allen-es On "ts (at) To=ar A 4orl !lass .as "n ustry5: (iddle )ast )conomic Survey: 21 0ovember 2>11? 1>;2 5,)ell -ets its -as eal5: Ira' 0il !e1ort: 23 0ovember 2>11? 1>;3 5T)e se&ret )istory of t)e ,)ell -as eal5 Ira' 0il !e1ort: 21 Banuary 2>1>? 1>;4 5,)ell -ets its -as eal5: Ira' 0il !e1ort: 23 0ovember 2>11?

1;6

Pro;ect 5oals
Oil /inister Ab ul 1arim al-2uaibi )as )i-)li-)te t)e important role t)e B.! =as inten e to play in "raq5s strate-y to boost t)e &ountry5s I&)roni&ally un erperforminele&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 1)or al @ubair previously operate by t)e ,out) .as !ompany? But as oil pro u&tion in&reases: t)ere =ill be total investment of +, G13 billion: =it) t)e possibility of an a itional G4 billion for an 20. e'port plant if t)ere =ere to be suffi&ient surplus -as after omesti& nee s )a been met? T)e obje&t ive for t)rou-)put is 2> billion &ubi& metres 6b&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)ol ers? T)e Basra provin&ial &oun&il )as t)reatene to file a la=suit a-ainst t)e eal: &laimin- t)at lo&al offi&ials =ere not involve in t)e ne-otiations an i not )ave t)e opportunity to se&ure -uarantees of so&ial investment? T)is is a &laim enie by ,)ell mana-ement: )o=ever Ira' 0il !e1ort su--ests t)at t)e vali ity of t)e !oun&il5s obje&tions =as a&#no=le -e by one of (/ 0ouri al-/ali#i5s top oil a visors?1>;3 T)e question of )o= to ali-n t)e interests of t)e various parties involve present a furt)er &)allen-e? 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 fiel s in question 6in&lu in- B(: %''on/obil an %ni7 still nee e to be resolve ? T)ere =as some isa-reement on =)o )as first ri-)ts to t)e asso&iate -as pro u&e at t)e fiel s?1>;3 Analysis by t)e "nternational %ner-y A-en&y 6"%A7 e'pan s on t)is &)allen-e: ar-uin- t)at as t)e te&)ni&al servi&e &ontra&ts si-ne for fiel s supplyin- -as to t)e B.! o not in&lu e a remuneration fee for -as pro u&tion: t)e &ontra&tors )ave little &ommer&ial in&entive to ma#e -as rea ily available? Co=ever t)ey o )ave an in&entive to use t)e proje&t to promote a stron- publi& ima-e on t)e question of flarin-?1>;5 "n a ition t)e proje&t presents &omple' e&onomi& problems? 2o= omesti& -as pri&es 6fi'e at just over G1 per million Britis) t)ermal units: /Btu7 o not offer suffi&ient value to un erpin t)e investment require : a&&or in- to t)e "%A: meanin- t)at t)e B.! must rely on returns earne from t)e )i-)er value of natural -as liqui s e'tra&te from t)e ra= -as 6&on ensate an 2(.7: =)i&) &omman a )i-)er pri&e t)an t)e omesti& -as pri&e?1>;5

1>;5 5"raq %ner-y Outloo#5: International )nergy Agency: 2>12?

1;3

+nvironmental Impacts of Iraq4s Oil and 0as Industry

0as flarin5
As of 2>11: t)e only &ountries to 5flare5 more natural -as t)an "raq =ere Russia: "ran an 0i-eria?1>;6
,ee alsoA *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 pro u&e ? "n t)e past: oil &ompanies in t)e sout) of "raq )ave primarily relie on t)e Ti-ris river for =ater supply: )o=ever "raqi -overnment offi&ials )ave pre i&te t)at sout)ern "raq =ill fa&e a major =ater &risis in 15 to 2> years if t)in-s &ontinue as t)ey are?1>;3 "n parti&ular tensions bet=een Tur#ey an "raq )ave arisen over t)e impa&t of Tur#ey5s +, G32 billion 1>;; ,out)east Anatolia (roje&t 6.A(7 on "raq5s =ater resour&es? .A( is an infrastru&ture proje&t laun&)e in 1<35 an involvin- t)e &onstru&tion of 22 ams a&ross t)e %up)rates an Ti-ris basins? Tur#ey in t)e past )as resiste rea&)inan a-reement =it) bot) "raq an ,yria: fello= 5o=ners5 of t)e =ater from t)ese rivers: =it) former presi ent Tur-ut OEal sayin- t)at I=e onMt tell Arabs =)at to o =it) t)eir oil: so =e onMt a&&ept any su--estion from t)em about =)at to o =it) our =ater?I1>;< A&&or in- to Den#ata Demuri of pressure -roup One 4ater: for t)e nei-)bours of Tur#ey an "raq t)e imme iate &on&ern is t)at ifferen&es over =ater &oul isrupt t)e flo= of oil?1>;; T)e 0.O !oor ination !ommittee for "raq also reports &on&erns aroun t)e ultimate estination of t)e lar-e quantities of =ater use after oil e'tra&tion? T)is =ater is often &ontaminate urin- e'tra&tion =it) to'i& bypro u&ts an release into t)e -roun : from =)ere a&i s: &ar&ino-ens 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 in ustry an e'pose to t)ese to'ins are at parti&ular ris#?1><> A 2>>3 Report by t)e +nite 0ations %nvironment (ro-ramme 6+0%(7 states t)at 5oil in ustry sites???? are un oubte ly a major sour&e of &ontamination an )aEar ous =aste?51><1
1>;6 5,)ell si-ns _11bn eal to fuel "raq5s po=er stations =it) -as5: uardian: 23 0ovember 2>11? 1>;3 5"raq may suffer &lean =ater &risis in 15-2> years5: !euters: 21 ,eptember 2>11? 1>;; 5/i le %ast- Tur#ey an "raq: (artners in ,o /any 4ays5: 0ne "ater: retrieve 3 *e&ember 2>12? 1>;< Bon-er en: Boost: 5*ams an (oliti&s in Tur#eyA +tiliEin- 4ater: *evelopin- !onfli&t5: 2>1>? 1><> 5"raqis an 0.Os !onsi er $uture %n-a-ement =it) "nternational Oil !ompanies5: * 0 Coordination Committee for Ira' : retrieve 3 *e&ember 2>11? 1><1 5+0%( in "raqA (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion5: U*)P: *e&ember

1;;

T)e same +0%( report a resses 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 Ti-ris an %up)rates rivers? T)e re-ion be-ins nort) of Ba-) a an e'ten s to t)e (ersian .ulf? 1><2 T)is re-ion: #no=n as t)e /esopotamian mars)lan s: is )ome to lo&al tribes =)o live above some of t)e ri&)est oil reserves in "raq? *urin- ,a am Cussein5s 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 Ti-ris an %up)rates river basin: =)i&) fee s "raq: Tur#ey: ,yria an "ran? Co=ever t)e )eart of t)e =etlan s lies in sout)ern "raq: alon- t)e bor er =it) "ran an near bi- &ities li#e Basra? 1><4 A&&or in- to a 2>11 +0 4)ite (aper: t)e future of t)e mars)lan s 5 epen s on )o= su&&essfully "raq is able to stri#e a balan&e bet=een national evelopment: in&lu in- t)e evelopment of t)e oil in ustry infrastru&ture in t)e /ars)lan s area: an environmental &onservation?5 T)e &entral -overnment initiate plannin- for t)e lon- term evelopment of t)e mars)lan s bet=een 2>>5 an 2>>6: )o=ever t)e influen&e of t)e oil in ustry is &ite by t)e +nite 0ations "nte-rate 4ater Tas# $or&e for "raq as bein- one of t)e &)allen-es in evelopin- a sin-le strate-i& 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 en an-erin- parts of t)e .ulf: part of a fra-ile e&osystem? "n t)e sout) =)ere t)e =ater table is just a fe= feet belo= t)e -roun : oil from ama-e pipelines also seeps into =ater supplies use for a-ri&ulture an rin#in- =ater? 1><6 "raq5s oil infrastru&ture )as also &ome un er atta&# frequently sin&e 2>>3? T)e "nstitute for t)e Analysis of .lobal ,e&urity t)in#-tan# &ounts at least 46< si-nifi&ant atta&#s on "raqi oil infrastru&ture bet=een =)en e'ports resume in Bune 2>>3 an /ar&) 2>>;?1><3 A&&or in- to t)e BB!: t)e vast majority of atta&#s on t)e oil in ustry =ere blame on insur-ents bent on estabilisin- "raq?1><6 Asi e from sabota-e: some ruptures )ave been lin#e to maintenan&e issues alonpipelines? "n parti&ular: in late O&tober 2>11 a pipeline =)i&) runs sout) from 4est Furna past t)e Rumaila oil fiel to t)e $ao port suffere an oil spill: follo=in- a rupture in a pipe s&)e ule to be repla&e by !)inese !0(!? T)e spill =as terme a 5 isaster5 by *eputy %nvironment /inister 1amal 2atif: as it en an-ere Basra5s only sour&e of fres) =ater an &ontaminate a 22-#ilometre stret&) of t)e Ba a5s &)annel: =)i&) fee s t)e only =ater purifi&ation fa&ility servin- t)e &ity of Basra? A&&or in- to Ira' 0il !e1ort: t)e in&i ent =as seen as an a&&i ent rat)er t)an an a&t of sabota-e an an offi&ial from t)e Oil (oli&e a mitte t)at poor maintenan&e =as to blame for t)e
2>>3? 1><2 5+0%( in "raqA (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion5: U*)P: *e&ember 2>>3? 1><3 5"raqi Tribal *isputes (ose 0e= !)allen-e to Oil $irms5: Ira' )nergy *e&s: 31 /ay 2>11? 1><4 5% en in t)e 2ine of $ire5: /ierra America: retrieve 3 *e&ember 2>11? 1><5 5/ana-in- !)an-e in t)e /ars)lan sA"raqMs !riti&al !)allen-e5: United *ations: 2>11? 1><6 5Oil atta&#s tar-et "raq re&overy5: BBC *e&s: 16 Bune 2>>4? 1><3 5"raq (ipeline 4at&) 5: IA S: 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&&or in- to a +0%( Report: t)e nee to rebuil "raq5s environmental monitorin- &apa&ity =as ur-ent?1><<

.//0 onstitution
T)e 2>>5 !onstitution of t)e Republi& of "raq eman s s)are responsibility for environmental re-ulation bet=een t)e fe eral aut)orities an t)e pro u&in- a ministrative re-ions in mana-ement of oil an -as? Co=ever: t)e fe eral -overnment remains t)e e&ision ma#er on &ertain matters: in&lu in- -eneratin- poli&ies relatin- to =ater sour&es from outsi e "raq?11>>

$nvironmental laws of 1223 and .//4

2a= 0o? 3 of 1<<3 &overe soil: air quality an =ater resour&es an forme 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<<3 2a= is to Iprote&t t)e environment an to ma#e it better in&lu in- t)e territorial =aters: from pollution an to e'tenuate its effe&ts on )ealt): environment an natural resour&es?K T)e subsequent 2a= 0o? 33 of 2>>; stren-t)ens t)e 1<<3 %nvironmental 2a=: an &re ate a formal /inistry of %nvironment? T)is /inistry e'e&utes formal ministerial instru&tions an or ers: &reates environmental 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 6T,!s7 si-ne in t)e first bi roun s in 2>>< require &ontra&tors an operators to &on u&t petroleum operations =it) ue re-ar to t)e prote&tion of t)e environment an to t)e &onservation of natural resour&es: a optin5best international petroleum in ustry pra&ti&es5? Co=ever: t)e efinition of 5best pra&ti&es5 is some=)at ambi-uous? A&&or in- to Ira' 0il !e1ort: an international oil &ompany 6"O!7 may =ell alrea y apply t)e )i-)est stan ar s: as a result of its o=n &orporate poli&ies or t)ose of its finan&iers: )o=ever t)e T,!s =oul seemin-ly allo= lo=er stan ar s -enerally a&&epte as 5-oo pra&ti&e5?11>>

1><; 5Oil pipeline lea# t)reatenin- Basra =ater supply5: Ira' 0il !e1ort: 3 0ovember 2>11? 1><< 5+0%( in "raqA (ost-&onfli&t Assessment: !lean-up an Re&onstru&tion5: U*)P: *e&ember 2>>3? 11>> 5AnalysisA "raqi le-al re-ime prote&ts environment5: Ira' 0il !e1ort: 31 Banuary 2>11?

1<>

.//2 $nvironmental "aw

T)e 2>>< %nvironmental 2a= e'pan e t)e juris i&tion an enfor&ement po=ers of t)e /inistry of %nvironment an intro u&e t)e &on&ept of environmental impa&t assessments 6%"As7: =)i&) s)oul be submitte to t)e /inistry an approve before =or# may be-in? T)e assessment s)oul in&lu e t)e follo=in- elementsA O positive an ne-ative impa&ts of t)e proje&t on t)e environment? O means to prevent an a ulations? ress t)e &auses of pollution in or er to &omply =it) re--

O &ontin-en&ies for pollution emer-en&ies an pre&autions? O possible alternative to t)e use of te&)nolo-y less )armful to t)e environment? O provisions to re u&e =aste? T)e 2>>< la= also establis)es penalties for non-&omplian&e an environmental pollution: su&) as &losure of operations for efine perio s an fines of up to +, G;5> a mont) until t)e non-&ompliant fa&tor is remove ? "f not reme ie : t)e aut)orities &an resort to imprisonment an furt)er fines?11>1

International treaty obligations

Asi e from internal re-ulation: "raq )as also si-ne up to a number of environmental &onventions an a-reements: in&lu in-N t)e Basel !onvention 62>><7N t)e !onvention on *esertifi&ation 62>>37N t)e !limate !)an-e !onvention an 1yoto (roto&ol 62>>;7N t)e +0%,!O !onvention 62>>;7N an !onvention for Biolo-i&al *iversity 62>>;7? 11>1 Co=ever a&&or in- to &orporate attorney T)omas *onovan: "raq )as tra itionally la--e be)in international stan ar s an )as only re&ently si-ne 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 5AnalysisA "raqi le-al re-ime prote&ts environment5: Ira' 0il !e1ort: 31 Banuary 2>11?

1<1

Oil and Gas Fields Fields awarded y central go!ernment

Ahdab Oil Field
Oil Reserves Oil (ro u&tion %stimate .as in (la&e *is&overe $irst (ro u&e 2o&ation (rin&ipal (artners ,e&on ary (artners 1 billion barrels 6estimate711>2 14>:>>> bp 62>12711>2 35> bs&f11>3 1<3<11>2 2>1111>2 4asit (rovin&e: %ast?

!0(! 635V711>4
0ort) Oil !ompany 625V711>2

T)e A) ab fiel lies in a 3>3 square #ilometre blo&# in "raq5s 4asit provin&e: 1;> #m sout)-east of Ba-) a ? T)e fiel =as ori-inally e'plore usin- 1<3>s vinta-e 2* seismi& ata?11>3 "raqi offi&ials )ave estimate t)at t)e fiel )ol s appro'imately 1 billion barrels of oil? T)e fiel also )ol s 35> billion stan ar &ubi& feet 6s&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 si-ne in 1<<6 bet=een t)e !0(! an ,a am Cussein5s -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 un er a te&)ni&al servi&es &ontra&t si-ne =it) t)e "raqi -overnment? +n er 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(!5s
11>2 5!)ina Opens Oil $iel in "raq: *e& .ork /imes: 2; Bune 2>11 11>3 5"raq5s A) ab oil fiel evelopment limits &ontra&tor profitability: 0il and as Journal: ; Banuary 2>11 11>4 5!0(! starts pro u&tion Al-A) ab oil fiel in "raq: Penn )nergy: 2< Bune 2>11

1<2

lar-est in t)e /i le %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 5-et a foot in t)e oor5 of t)e "raqi in ustry?11>5 A&&or in- to a 2>>; +, iplomati& &able: !0(! estimates t)at output &oul rea&) as )i-) as 11>:>>> barrels per ay 6bp 7 an t)at !0(! =ill be pai 5somet)in- li#e5 G6 per barrel un er t)e terms of t)e eal? But !)inese Tra e !ounselor @)ue 9ues)en&ommente t)at t)e !)inese si e =as &on&erne about "raqi se&urity -uarantees: =)i&) )a to be resolve before =or# &oul be-in at t)e site? 11>6 T)e eal over t)e oilfiel )as ra=n &riti&ism from resi ents an offi&ials in 4asit (rovin&e? ,ome people eman e t)at 4asit be -rante a royalty of G1 per barrel to improve a&&ess to &lean =ater: )ealt) servi&es: s&)ools: roa s an ot)er publi& nee s in t)e provin&e: =)i&) is amon- "raqMs poorest? Co=ever: t)e "raqi -overnment reje&te t)e eman s? T)e resi ents &omplaine in 2>>< t)at !)inese evelopment of t)e fiel =oul )ol no benefits for t)em: ot)er t)an provi in- lo&al employment for less t)an G6>>Tmont)? $ears =ere also raise over se&urity for =or#ers an fears of #i nappin-?11>5

Production and +#port

"n 0ovember 2>12 it =as reporte t)at t)e fiel )a a total of 13> operatin- =ells an =as pro u&in- at a level of 14>:>>> bp ?11>5

A==as 0as Field

%stimate .as in (la&e *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 5?6 t&f11>3 1<<211>; Al-Anbar -overnorate: 4est?

1o-as 635V711>; 0ort) Oil !ompany 625V711>;

T)e A##as -as fiel 6also #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 bor er? T)e A##as stru&ture is appro'imately 3>#m lon- an 12#m =i e? 11>< al-Anbar provin&e =as on&e a )otbe for insur-ents: =it) one "raq offi&ial referrin- to t)e area as It)e same sour&e: for al-Fai a an -as?I Co=ever: se&urity =as reporte to )ave improve in 2>1> as Al-Fai a =as &)ase to nei-)bourin- territories? An "raqi oil
11>5 5!)ina Opens Oil $iel in "raq: *e& .ork /imes: 2; Bune 2>11 11>6 5!)inese %mbassy On 4asit Oil *eal An Business "n "raq: "ikiLeaks: < ,eptember 2>>; 11>3 5"raq ,i-ns $inal A##as .as *eal =it) 1O.A, Ira' Business *e&s: 13 O&tober 2>11 11>; 5"raq to ,i-n !ontra&t 4it) 1orea .as for A##as $iel To ay5? Bloomberg: 13 O&tober 2>11? 11>< 5A##as5? Ira' )nergy: retrieve 13 *e&ember 2>11?

1<3

offi&ial a&#no=le -e 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 &ountry5s lar-est reserves of -as: =it) 5?6 trillion &ubi& feet 6t&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& nee s 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 "raq5s -as reserves? 1112 T)e ori-inal eal a=ar e to &onsortium partners 1o-as an 1aE/unay.as =as lon- elaye ami ne-otiations bet=een ifferent sta#e)ol ers: )o=ever t)e eal to evelop t)e eposit =as finally si-ne in O&tober 2>11 un er an amen e o=ners)ip stru&ture?1113 +n er t)e terms of t)e ori-inal bi : t)e plateau pro u&tion tar-et =as 1>> //s&f 6million stan ar &ubi& feet7 per ay an t)e propose remuneration fee =as G3?5> per barrel of oil equivalent 6boe7 pro u&e ? 1114 "n /ay 2>11: 1aE/unay.as pulle out of t)e venture: leavin- 1o-as 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 ne-otiate an si-ne in O&tober 2>11 bet=een 1o-as an t)e "raqi Oil /inistry? T)e &ompany &ommitte to in&reasin- pro u&tion to 4>> //s&f per ay =it)in seven years an )ol in- t)at output for 13 years: earnin- a G5?5> remuneration fee for ea&) boe pro u&e ?1111 A&&or in- 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 lea ers eman e 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 lo-isti&al support for forei-n &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&&or in- 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 pro u&e &an be sent to a pro&essin- fa&ility in ,yria before a &omparable omesti& fa&ility at A##as must be rea y?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 bor er: A##as is an attra&tive sour&e of -as for t)e
111> 5Anbar: &entral -overnments poise for fi-)t over A##as5? Ira' 0il !e1ort: 1 Bune 2>1>? 1111 5A##as eal finally si-ne 5? Ira' Business *e&s: 13 O&tober 2>11? 1112 5"raqi .as $rom 5A##as $iel Allbusiness-com 22 /ar&) 2>1> 1113 5"raq ,i-ns $inal A##as .as *eal =it) 1o-as5? Ira' Business *e&s: 13 O&tober 2>11? 1114 5Bi in- Results Overvie= for 2i&ensin- Roun 35? Ira' )nergy: retrieve 13 *e&ember 2>11? 1115 5.as eals a van&e: politi&al )ur les remain5? Ira' 0il !e1ort: 15 0ovember 2>1>? 1116 5A##as eal finally si-ne 5? Ira' Business *e&s: 13 O&tober 2>11?

1<4

5,out)ern !orri or5 pipeline proje&t: =)i&) nee s a -uarantee supply of -as to &ompete =it) Russian pipelines fee in- %uropean &ustomers? A&&or in- to Iraq Oil Report: Ba-) a offi&ials promise "raqi -as for 0abu&&o: but only after lo&al eman for refine pro u&ts an ele&tri&ity )as been met? 1113

,adra Oil Field

Oil Reserves Oil (ro u&tion *is&overe $irst (ro u&e 2o&ation (rin&ipal (artners ,e&on ary (artners 3 billion barrels111; nTa 1<3< 2>13 6fore&ast7111< 4asit (rovin&e: %ast?

.aEprom 63>V7 1o-as 622?5V7: (etronas 615V7: T(AO 63?5V7: Oil %'ploration !ompany 625V7111;

T)e Ba ra oil fiel is situate in 4asit -overnorate: 16> #m sout)-east of Ba-) a : an e'ten s a&ross t)e bor er =it) "ran? T)e fiel is appro'imately 16#m lon- an 6#m =i e? T)e Ba ra is&overy =ell =as rille in 1<3<? A se&on appraisal =ell: rille in t)e late 1<;>s: =as aban one ue to t)e impa&t of =ar? 112> .aEprom es&ribes t)e Basra eposit as )avin- a 5&)allen-in- profile5: =it) a si-nifi&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 ap pro'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 "raq5s se&on li&ensin- roun of 2>><? T)e Oil /inistry announ&e in *e&ember 2>>< t)at it )a a&&epte a revise bi form t)e &onsortium: =)i&) &omprise of .aEprom 63> per &ent7: 1o-as 622?5 per&ent7: (etronas 615 per&ent7 an T(AO 63?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 si-nature bonus an t)e remuneration fee =oul be G5?5> per barrel? T)e offi&ial press release announ&in1113 5Anbar: &entral -overnments poise for fi-)t over A##as5? Ira' 0il !e1ort: 1 Bune 2>1>? 111; 5.aEprom be-ins rillin- at "raq5s Ba ra fiel 5: Arabian 0il and as: 23 0ovember 2>11 111< 5.aEprom 0eft ,tarts *rillin- "n T)e Ba ra $iel "n "raq5: 0il?oice: 2; 0ovember 2>11 112> 5Ba ra5? Ira' )nergy: retrieve 12 *e&ember 2>11? 1121 5"raqMs ,e&on (etroleum 2i&ensin- Roun Ba ra !ontra&t Area J Bi in- Results5: Petroleum Contracts and Licensing %irectorate: 2>><?

1<5

t)e &ontra&t sai t)e &onsortium )a ori-inally offere G6 a barrel but ultimately a&&epte t)e lo=er fi-ure? As =ell as &ru e oil: t)e &ontra&t stipulates t)at t)e fee is also payable on liqui petroleum -as 62(.7 an natural -as )an e over to t)e state partner from a -as pro&essin- plant? T)e fee =as to #i&# in =)en pro u&tion rea&)es 15:>>> barrels per ay 6bp 7? 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)e -overnor of 4asit announ&e t)at t)e first oil =ell )a been rille at Ba ra fiel : one of 13 =ells to be rille at t)e site? T)e -overnor e'pe&te t)at t)e fiel =oul rea&) pea# pro u&tion of 13>:>>> bp by 2>16: ma#in- t)e 4asit provin&e one of t)e main oil pro u&in- provin&es in t)e &ountry? 1122 T)e ept) of t)e appraisal =ell rea&)e 4:<>> metres an &omplete in April 2>12?1123 rillin- =as e'pe&te to be

,ai 6assan Oil Field

Oil Reserves Oil (ro u&tion 2o&ation (rin&ipal (artners 2?>3; billion barrels1124 2>>:>>> bp 62>1271124 *ibis (rovin&e: 0ort)? state-mana-e

T)e Bai Cassan fiel lies in t)e nort)ern provin&e of *ibis: just sout)-=est of t)e 1ir#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 1ur is) re-ional aut)orities? T)e fiel is operate by "raq5s state-o=ne 0ort) Oil !ompany 60O!7?1124 ,e&urity &on&erns =ere raise in Bune 2>12 =)en seven bombs =ere is&overe at t)e fiel : in&lu in- t=o t)at e'plo e beneat) pipelines at t)e site: alt)ou-) pro u&tion output =as not isrupte ?1124

Contract ne5otiations
On t)e 2 Buly 2>>< t)e (etroleum !ontra&ts an 2i&ensin- *ire&torate of t)e /inistry of Oil announ&e t)at: espite several bi s from international oil &ompanies 6"O!s7 for t)e Bai Cassan &ontra&t area: t)e &ountry e&i e 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 5$irst =ell in Ba ra oil fiel rille : .overnor5: Ira' %aily Journal: 2; 0ovember 2>11 1123 5.aEprom 0eft ,tarts *rillin- "n T)e Ba ra $iel "n "raq5: 0il?oice: 2; 0ovember 2>11 1124 5Bombs tar-et 1ir#u# provin&e oil fiel 5: Ira' 0il 4orum: < Bune 2>12? 1125 5Bai Cassan5: Ira' )nergy: retrieve 12 *e&ember 2>11? 1126 5"raqMs $irst (etroleum 2i&ensin- Roun A Bai Cassan !ontra&t Area J Bi in- Results5:

1<6

an ,ino&)em: )o=ever t)e remuneration fee bi of G26?3> =as =ell in e'&ess of t)e minimum establis)e by t)e /inistry of Oil? A&&or in- to a lea#e +, iplomati& &able: !ono&o5s bi =as by far t)e )i-)est fee requeste in t)e bi roun an t)ou-) t)ey =ere t)e sole bi ers: t)ey refuse to re u&e t)eir offer to t)e ma'imum G4 fee an =al#e a=ay =it) no a=ar ?1123

Production and e#port

A&&or in- to &omments ma e by /anaa al-Obei i: *ire&tor .eneral of 0ort) Oil !ompany 60O!7 in 2>><: pro u&tion at Bai Cassan in&rease from 15>:>>> barrels per ay 6bp 7 in mi -2>>; to 135:>>> bp in 2>>< follo=in- a =ater inje&tion proje&t an t)e rillin- of t)ree ne= =ells?112; "t =as reporte in 2>11 t)at t)e 0O! e'pe&te to in&rease pro u&tion to 24>:>>> bp ?112<

4+astern Fields4
Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners nTa 1<23: 1<3;: 1<36: 1<3< *iyala -overnorate: 0ort)-%ast state-mana-e

T)e 5%astern $iel s5 is t)e &olle&tive name for a -roup of four un evelope fiel sN .ilabat: 1)as)em AlA)mar: 0au *oman an Fumar? T)e fiel s are lo&ate in *iyala -overnorate in nort)-eastern "raq: some 1>>-15>#m sout) of 1ir#u# &ity? T)e fiel s =ere is&overe in 1<23 61)as)em Al-A)mar7: 1<5; 6.ilabat7: 1<36 60au *oman7 an 1<3< 6Fumar7? As of *e&ember 2>><: ei-)t =ells )a been rille at t)e &on tra&t area: t=o in 1)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 ma e in multiple reservoirs in t)e four fiel : &onfirme by su&&essful =ell tests? 1131 Al-Fai a an ot)er insur-ent -roups )ave been a&tive in t)e area aroun t)e fiel s: an pose an a e ris# to investors an =or#ers? T)ey are also -roupe in ispute territories fou-)t over bet=een "raq5s Arabs an 1ur s? 1131

!e1ublic of Ira' (inistry of 0il: 2 Buly 2>><? 1123 5"raq /inistry Of Oil (repares To "nvite "n $orei-n Oil !ompanies5: "ikiLeaks: 3 O&tober 2>>; 112; 5/anaMa Al-Obei i5: Ira' 0il 4orum: 4 ,eptember 2>>< 112< 5%'port infrastru&ture eal latest of oil re-investment5: Ira' 0il !e1ort: 13 ,eptember 2>11? 113> 5"raqMs ,e&on (etroleum 2i&ensin- Roun A %astern $iel s !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Contracts Licensing %irectorate: 11 *e&ember 2>><? 1131 50o bi ers for %astern $iel s5: Ira' 0il !e1ort: 11 *e&ember 2>><?

1<3

Contract ne5otiations
$ollo=in- "raq5s se&on post=ar li&ensin- roun : t)e (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7 of t)e /inistry of Oil announ&e in *e&ember 2>>< t)at no bi s )a been re&eive for t)e %astern $iel s &ontra&t area? 1132 A&&or in- to Iraq Oil Report: t)e "raqi Oil /inistry =ante t)e fiel s to be pro u&in- at ;>:>>> barrels per ay 6bp 7 =it)in seven years an t)en maintaine for anot)er seven years? T)e =inninbi er =oul )ave to pay a G1>> million an =oul be require to spen at least G15> million in proje&t &osts: =)i&) =oul be refun able? 1133

+ast ,a5hdad Oil Field

Oil Reserves *is&overe $irst (ro u&e 2o&ation (rin&ipal (artners ; billion barrels 62>1>71134 1<36 1<;>1135 %ast Ba-) a ? state-mana-e

T)e super--iant %ast Ba-) a oil fiel is situate in t)e Ba-) a an ,ala in -ov ernorates: 1> #ilometres east of Ba-) a &ity? T)e &ontra&t area for t)e fiel is aroun 65 #ilometreslon- an 11 #ilometres =i e an &overs only t)e se&tion nort)-=est of t)e *iyala river?1135 *espite prove reserves of ; billion barrels: urin- t)e 2>>< li&ensin- roun s in "raq t)ere =ere no bi s by t)e international &onsortia to e'ploit t)e eposit? 4orbes ma-aEine su--ests t)at t)is may be&ause mu&) of t)e eposit lies un er resi ential areas:1134 as part of t)e fiel lies un er 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?1133 "n /ay 2>1> t)en-Oil /inister ,)a)ristani sai anot)er bi in- roun &oul be )el if t)ere =as enou-) preliminary interest from international &ompanies? I4e =ill tal# to &ompanies an if =e fin t)e esire to evelop t)ese fiel s: t)en =e &oul announ&e anot)er bi in- roun for t)e qualifie &ompanies to evelop t)ose fiel s:I )e sai in an intervie=?113;
11325 "raqMs ,e&on (etroleum 2i&ensin- Roun A %astern $iel s !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Contracts Licensing %irectorate : 11 *e&ember 2>><? 11335 0o bi ers for %astern $iel s5: Ira' 0il !e1ort: 11 *e&ember 2>><? 1134 5T)e 4orl 5s Bi--est Oil Reserves5: 4orbes: 21 Banuary 2>1> 1135 5%ast Ba-) a 5: Ira' )nergy: retrieve 12 *e&ember 2>11 1136 5"raq (ro-resses to=ar a $uture Built on Oil 4ealt)5: %er S1iegel: 4 O&tober 2>12? 1133 5"raq Oil $iel .oes to Royal *ut&) ,)ell an (etronas5: *e& .ork /imes: 11 *e&ember 2>><? 113; 5"raq may )ol t)ir oilfiel au&tion5: Calgary Herald: 2; /ay 2>1>?

1<;

Production
As of 2>12 "raqi an Bor anian &ompanies =ere rillin- at t)e site an pro u&tion rea&)e 1>:>>> barrels per ay 6bp 7? Co=ever pro u&tion at t)e fiel is slo=er t)an in esert re-ions as t)e area is so ensely populate ? 113<

0arraf Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners A(" ,pe&ifi&ity ;6> million - 1 billion barrels114>1141 35:>>> bp 62>1271142 1<;>s1142 *)i Far .overnorate: ,out)? (etronas 645V71141 Bape' 63>V7: ,out) Oil !ompany 625V7 15-36S

T)e .arraf oil fiel is situate in *)i Far .overnorate in sout)ern "raq: some 5 #ilo metres 6#m7 nort) =est of Al-Refaei &ity: < #m sout)-east of FalMat ,u#er &ity an ;5 #m nort) of 0asiriya)? *is&overe in 1<;4: t)e oil foun ran-es in -ravity from 15 to 36 SA(": in multiple reservoirs? T)e fiel is 13?5 #m lon- an 5?5 #m =i e? 1143 A&&or into Ira' 0il !e1ort t)e *)i Far provin&e is slate to be one of t)e bi--est pro u&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 "raq5s se&on li&ensin- roun in *e&ember 2>><? A&&or in- to lea#e +, iplomati& &ables: t)e un evelope .arraf fiel =as one of t)e first t=o fiel s offere : =)i&) re&eive bi s at 5stunnin-ly lo= pri&es5? T)e international partners in t)e =innin- &onsortium =ere ma e up of (etronas: 66> per&ent7: an Bape' 64> per&ent7? A&&or in- to t)e eal: t)e remuneration fee offere =as G1?4< an t)e 5plat eau pro u&tion tar-et5 =as 15>:>>> barrels per ay 6bp 7? 1145 T)e &onsortium suffere a setba&# at t)e site =)en lo&al tribesmen refuse to &e e t)eir an&estral lan s pea&efully =it)out a &as) payment from (etronas? T)e alle-e
113< 5"raq *evelops %ast Ba-) a Oilfiel 5: Ira' Business *e&s: 1< April 2>12? 114> 5F8AA .arraf Oilfiel *ire&tor ,ettar /a) i Babara5: Ira' 0il !e1ort: 14 0ovember 2>12? 1141 54eat)erfor 4ins G2>>m (roje&t at .arraf Oil $iel 5: Ira' Business *e&s: 2> O&tober 2>11? 1142 5(etronas ta#in- bi s for .arraf oil line in "raq5: Arabian 0il and as: 11 Bune 2>12? 1143 5.arraf Ira' )nergy: retrieve 12 *e&ember 2>11? 1144 5(rotestors storm .arraf oil fiel after reli-ious ispute5: Ira' 0il !e1ort: 3> 0ovember 2>12? 1145 5Oil ,tampe eA "raq:s 2n Bi Roun Results5: "ikileaks: 14 *e&ember 2>><?

1<<

e'tortion re= &on emnation 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&&or in- to A nan .alay: former &)airman of t)e fiel 5s mana-ement &ommittee: output from t)e fiel =as e'pe&te to )it 5>:>>> barrels per ay 6bp 7 by t)e en of 2>12: 6>:>>> bp in 2>13 an 1>>:>>> bp in 2>14? .arraf )as an eventual output tar-et of 23>:>>> bp : alt)ou-) t)e (etronas-Bape' partners)ip may loo# to in&rease pro u&tion beyon t)at level: a&&or in- to offi&ials? Co=ever in Buly 2>12 Cussein ,)a)ristani: "raqi *eputy (rime /inister for %ner-y Affairs: reporte ly ur-e t)e &onsortium evelopin- t)e .arraf fiel to spee up pro-ress on t)e proje&t? 1143 "n Bune 2>12: as t)e &onsortium =as rampin- up pro u&tion: (etronas opene up a ten er for t)e &onstru&tion of a ne= pipeline to ta#e &ru e from t)e fiel to &entral transport infrastru&ture?114;

6alfaya Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 4?1 billion barrels114< 3>:>>> bp 6Buly 2>127115> 1<36 /aysan -overnorate: ,out)-%ast? !0(! 633?5V71151 Total 61;?35V7: (etronas 61;?35V7: ,out) Oil !ompany 625V71151

T)e Calfaya oil fiel =as is&overe in 1<36 an is lo&ate in t)e /aysan -overnorate in t)e sout)-east of "raq: 35 #ilometres 6#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 pro u& tion potential of 2>>-535:>>> barrels per ay 6bp 7? 1151 T)e Calfaya eposit is appro'imately 35 #m lon- an 1> #m =i e?1152 A&&or in- to Ira' 0il !e1ort in 2>12: /aysan provin&e is emer-in- as a major ne= sour&e of oil an is on tra&# to be&omin- "raq5s se&on lar-est pro u&in- provin&e? 115>
1146 5(etronas preparin- for rillin- in .arraf5: Ira' 0il !e1ort: ; Buly 2>1>? 1143 5,)a)ristani tells Bape': (etronas to ,pee up *evelopment at .)arraf5: Ira' Business *e&s: 13 Buly 2>1>? 114; 5(etronas ta#in- bi s for .arraf oil line in "raq5: Arabian 0il and as: 11 Bune 2>12? 114< 5!0OO!: T(AO finaliEe /issan fiel s &ontra&t5: Ira' 0il !e1ort: 13 /ay 2>1>? 115> 5/issan )eral s oil boom =it) Calfaya openin-5: Ira' 0il !e1ort: 1; Buly 2>12? 1151 5"raq-!0(!T,O! - Calfaya Oil $iel 5: )nergy "orld: 13 ,eptember 2>1>? 1152 5Calfaya5 Ira' )nergy: retrieve 14 *e&ember 2>11?

2>>

Contract ne5otiations
$ollo=in- "raq5s se&on petroleum li&ensin- roun )el in *e&ember 2>><: t)e Calfaya &ontra&t area =as a=ar e to an international &onsortium le by !)inese !0(!? T)e &onsortium split =as 33?5 per&ent to !0(!: 1;?35 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&lu in- offers le by 0or=ay5s ,tatoil an Russia5s 2u#oil?1153 +n er t)e terms of t)e eal: t)e -roup is pai a remuneration fee of G1?4> per barrel: lo=er t)an t)e G1?36 sou-)t by a rival &onsortium le by "n ian state-o=ne O0.! Di es) 2t ?1154 T)ey must also pay "raq a non-re&overable si-nature bonus of +, G15> million?1155 T)e &ontra&t stipulates t)at pro u&tion s)oul rea&) 535:>>> bp : in a ition to provision of -as pro u&ts to nei-)borin- po=er stations? 1156 "n April 2>1> Total !%O !)ristop)e e /ar-arie sai )is &ompany =oul li#e to a&quire a lar-er sta#e in t)e fiel ? I"raq is a stron- part of our strate-y in t)e =orl an =e &ertainly on5t inten to remain a minority partner in t)e Calfaya fiel :I e /ar-arie =as quote as tellin- !euters?1153

Production and e#port

Oil /inister Ab ul 1areem 2uaiby sai t)at t)e se&on p)ase of Calfaya =ill involve pro u&tion &apa&ity rea&)in- 2>>:>>> bp by t)e en of 2>13: =)ile after t)e t)ir p)ase pro u&tion =ill rise to 4>>:>>> bp by t)e en of 2>14? T)e &onsortium plans to )it pro u&tion of 6>>:>>> bp by t)e en of 2>16? 115; "n Bune 2>12: t)e &ompany sai t)e first p)ase of operations at Calfaya =as operational an pro u&in- aroun 12>:>>> bp ?115< /aysan Oil !ompany 6/O!7 )as state t)at any liqui petroleum -as 62(.7 from Calfaya =oul be transferre to "raqi state-run ,out) .as !ompany for omesti& nee s an po=er -eneration?1153

*a;noon Oil Field

Oil Reserves 13 billion barrels116> 1153 5"raq-!0(!T,O! - Calfaya Oil $iel 5: )nergy "orld: 13 ,eptember 2>1>? 1154 5O0.! Di es) qualifies for "raq5s oil e'ploration bi in-5: /he )conomic /imes: < Au-ust 2>11 1155 5"raq in#s !0(!: Total: (etronas Calfaya eal5: A() Info: 26 Banuary 2>1>? 1156 5$our Oil 4ells *rille at Calfaya5: Ira' Business *e&s: 16 /ay 2>11? 1153 5Total eyes bi--er Calfaya sli&e5: U1stream 0nline: 22 April 2>1>? 115; 5(etro!)ina: Total: (etronas !al-ari ,tart Oil (ro u&tion at "raq5s Calfaya5: !ig#one: 1; Buly 2>12? 115< 5!0(! pumpin- 12>:>>> bp from Calfaya fiel 5: Arabian0iland as-com: 1; Bune 2>12? 116> 5"raq oil evelopment ri-)ts &ontra&ts a=ar e 5: BBC *e&s: 11 *e&ember 2>><

2>1

Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners

1;:6>> bp 6first quarter 2>127 1161 1<35 Al-Basra): ,out)-%ast? ,)ell 645V7

,e&on ary (artners (etronas 63>V7: /aysan Oil !ompany 625V7 1162

T)e super--iant /ajnoon oil fiel is situate in t)e Basra -overnorate in sout)-east "raq: e'ten in- nort)erly to=ar t)e /aysan -overnorate? 1163 T)e name /ajnoon 6meanin- 5&raEy57 =as &)osen ue to t)e e'&essive presen&e of oil in a limite area on t)e east of t)e Ti-ris River? T)e fiel is aroun 6> #ilometres 6#m7 lon- an 15 #m =i e: is lo&ate 6> #m nort)=est of Basra &ity an lies mostly un er man-ma e islan s in t)e Ca=iEa) mars)es: &lose to t)e "ranian bor er?1164 /ajnoon =as is&overe by BraEilian Braspetro in 1<35: )o=ever evelopment &ame to a )alt in 1<;> urin- t)e en-ineerin- p)ase of t)e proje&t: ue to t)e "ran-"raq 4ar? At t)e time: Braspetro )a finis)e rillin- of 2> =ells an 14 rillin- ri-s =ere in ser vi&e? Over t)e &ourse of t)e =ar: "ran o&&upie an sabota-e t)e area? $ollo=in- t)e =ar: "raq5s ,out) Oil !ompany 6,O!7 restarte t)e pro u&tion? "n t)e 1<<>s $ren&) Total ne-otiate a evelopment &ontra&t =it) ,a am Cussein but =as ultimately unable to si-n t)e eal ue to +0 san&tions impose on "raq? T)e eal =as eventually annulle by Cussein in 2>>2? "n 2>>3 Total an !)evron si-ne an a-reement =it) t)e ne= "raqi -overnment to e'plore t)e /ajnoon fiel ?1165

Contracts ne5otiated
$ollo=in- "raq5s se&on post-=ar li&ensin- roun in 2>><: t)e "raqi -overnment si-ne 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 6,O!7 an /aysan Oil !ompany 6/O!7 also forme part of t)e -roup: =)i&) inten e to boost pro u&tion to 1?; million barrels per ay 6bp 7 from 45:>>> bp in 2>1>? ,)ell is t)e lea operator in t)e &onsortium =it) a 45 per&ent sta#e: (etronas )ol s 3> per&ent an t)e "raqi state )ol s 25 per&ent?1166 T)e bi from ,)ell an (etronas beat a rival bi from $ran&e5s Total an !)ina5s !0(!? T)e &onsortium ple -e to in&rease output to 1?; million bp ? +n er t)e terms of t)e

1161 5+(*AT% 1-,)ell says may miss 2>12 /ajnoon output tar-et5: !euters: 1; ,eptember 2>12? 1162 5Calliburton ,i-ns G15>m !ontra&t for "raqMs /ajnoon Oilfiel 5: Ira' Business *e&s: 24 0ovember 2>1> 1163 5/ajnoon5: Ira' )nergy: retrieve 12 *e&ember 2>11? 1164 5/ajnoon $iel : "raq5: 0ffshore /echnology: retrieve 12 *e&ember 2>11? 1165 5+n er Ti-)t ,e&urity: "raq ,ells Ri-)ts to *evelop 2 Oil $iel s5: *e& .ork /imes, 11 *e&ember 2>><? 1166 5"raq ,i-ns /ajnoon Oilfiel A-reement 4it) ,)ell: (etronas5: Bloomberg, 13 Banuary 2>1>?

2>2

eal t)e &ompanies re&eive a remuneration fee of G1?3< per barrel?1163

Production and e#port

"n ,eptember 2>11: ,)ell Di&e (resi ent Cans 0ij#amp announ&e t)at pro u&tion =as at a level of appro'imately 35:>>> bp ? 116; But in t)e first quarter of 2>12 pro u&tion fell - output levels varie : =it) )i-)s of 54:>>> bp but an avera-e of only 1;:6>> bp ? T)e upper limit =as as mu&) as pipeline &apa&ity &oul )an le? As a result of t)ese &onstraints in Bune 2>12 a s)ut o=n be-an at /ajnoon for maintenan&e an in or er to brin- ne= pro u&tion fa&ilities online?116< Re-ional ,)ell boss /ar# !arne &ommente in 2>12 t)at Iit =oul be fair to say t)at pro-ress )as been slo=er t)an =e ori-inally )ope ?I113> But a&&or in- to ,)ell5s 2>13 evelopment pro-ramme for /ajnoon: output =as e'pe&te to rise above 2>>:>>> bp over t)e year: above t)e level nee e to start re&overin- &osts? 1131 "nfrastru&ture limitations )ave been a #ey obsta&le for t)e &onsortium: as t)e e'istin2;-in&) /ajnoon pipeline &annot &ope =it) t)e proje&te in&rease in &ru e pro u&tion? A letter from ,)ell5s mana-in- ire&tor at /ajnoon state t)at Ia #ey &on&ern??? remains t)e un&ertain elivery of t)e $irst !ommer&ial (ro u&tion 6$!(7 pipelineI? 1132 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 &on itions: t)at )ampere evelopment? 1133 "n *e&ember 2>12 t)e is&overy of an an&ient (ersian ar&)aeolo-i&al site at /ajnoon a e furt)er &ompli&ations in ,)ell5s evelopment of t)e fiel ?1134

*ansuriyah 0as Field

.as in (ro u&tion 2o&ation (rin&ipal (artners ,e&on ary (artners nTa *iyala -overnorate: %ast? T(AO 633?5V71135 Oil %'ploration !ompany 625V7: 1u=ait %ner-y !ompany 622?5V7: 1o-as 615V71135

1163 5"raq oil evelopment ri-)ts &ontra&ts a=ar e 5: BBC *e&s, 11 *e&ember 2>><? 116; 5"raq5s /ajnoon pro u&in- 35:>>> bp 5: !euters: 23 ,eptember 2>11 116< 5+(*AT% 1-,)ell says may miss 2>12 /ajnoon output tar-et5: !euters: 1; ,eptember 2>12? 113> 5.ently oes it5: Petroleum )conomist: 26 ,eptember 2>12? 1131 5+(*AT% 1-,)ell sees "raq /ajnoon 2>13 output at over 2>>:>>> bp 5: !euters: 12 0ovember 2>12? 1132 5%'&lusiveA "raq pipeline elays t)reaten ,)ell5s /ajnoon5: !euters: 26 Au-ust 2>12? 1133 5,)ell %'pe&ts To /eet "raq Oil $iel Tar-et *espite ,etba&#s5: "all Street Journal: 1< ,eptember 2>12? 1134 5Beyon t)e Cea linesA *e&? 11: 2>125: Ira' 0il !e1ort: 11 *e&ember 2>12? 1135 51BR A=ar e $%%*: F!,, !ontra&ts at /ansuriya5: Ira' Business *e&s: 6 *e&ember 2>12?

2>3

T)e /ansuriya) -as fiel is lo&ate 5> #ilometres 6#m7 nort)-east of Baquba &ity in *iyala provin&e: =)i&) is about 1>> #m nort)-east of Ba-) a ? 1136 A&&or in- to Ira' 0il !e1ort: in 2>11 t)e provin&e =as still sufferin- from persistent insur-ent violen&e? 1133

Contract ne5otiations
T)e /ansuriya) fiel =as initially put up for bi in- urin- t)e first post=ar li&ensinroun in "raq in Bune 2>><: )o=ever t)e &ontra&t area attra&te no bi s? 113; T)e =innin- bi for t)e fiel urin- "raq5s t)ir roun of li&ensin- in 2>1> &ame from an international &onsortium le by Tur#is) ener-y &ompany T(AO: =)o )el a 5> per&ent sta#e? Ot)er &ompanies to parti&ipate in t)e &onsortium =ere 1u=ait %ner-y: =it) a 3> per&ent sta#e an 1o-as =it) 2> per&ent?113< "n O&tober 2>1> t)e (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*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 6boe7 =as above t)e 5ma'imum remuneration fee5 set by t)e /inistry: )o=ever t)e lo=er fi-ure of G3 =as subsequently a&&epte by t)e &onsortium? +n er t)e terms of t)e eal: t)e tar-et pro u&tion plateau =as 32> million stan ar &ubi& feet 6/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 sta-e an no -as )a yet been pro u&e at t)e site?11;1

*aysan Oil Fields

Oil Reserves Oil (ro u&tion 2o&ation (rin&ipal (artners ,e&on ary (artners 2?5 billion barrels11;2 <>:>>> bp 62>1>711;3 /aysan -overnorate: ,out)-%ast? !0OO! 663?35V711;4 T(AO 611?25V7: "raq *rillin- !ompany 625V711;4

1136 5/ansuriya5: Ira' )nergy retrieve 13 *e&ember 2>11? 1133 5Tur#ey &ontinues ener-y strate-y in "raq5: Ira' 0il !e1ort 6 Bune 2>11? 113; 5$irst "raqi (etroleum 2i&ensin- Roun 5: %eloitte, retrieve 13 *e&ember 2>11? 113< 5.as eals a van&e: politi&al )ur les remain5: Ira' 0il !e1ort: 15 0ovember 2>11? 11;> 5Bi in- Results Overvie= for 2i&ensin- Roun 35: Ira' )nergy retrieve 13 *e&ember 2>11? 11;1 5"raq-/ansuriya5: +u&ait )nergy: retrieve 13 *e&ember 2>12? 11;2 5+(*AT% 2-"raq in eal =it) !0OO!: T(AO for /aysan oilfiel s5: !euters: 13 /ay 2>1>? 11;3 5"raq to *ouble Oil Output from /aysan $iel s5: B)%igest: retrieve 13 *e&ember 2>11? 11;4 5"nternational A&tivities5: /PA0: retrieve 13 *e&ember 2>11?

2>4

T)e /aysan oil fiel s 6also #no=n as t)e /issan Oil $iel s7 are a &omple' of fiel s lo&ate aroun 135 #ilometres 6#m7 nort) of Basra &ity an in&lu e t)e Abu .)irab: Babal $auqi 6$a##a7 an BuEur-an oil fiel s?11;5 T)e /aysan provin&e s)ares a bor er =it) "ran an in *e&ember 2>>< a -roup of "rani an bor er -uar s &rosse t)e bor er 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 -uar s remaine in t)e area for anot)er mont)? A&&or in- 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 bor er an t)us t)e fiel s t)at &ross it? 11;6

Contract ne5otiations
T)e /aysan &ontra&t area =as put up for bi in- in "raq5s first petroleum li&ensinroun : but t)e fiel only attra&te one bi an no &ontra&t =as a=ar e ? 11;3 Co=ever in /ay 2>1> "raq si-ne a final eal =it) !)ina5s !0OO! an Tur#is) staterun T(AO to evelop t)e /aysan oilfiel &omple'? !0OO!5s ori-inal partner for evelopin- t)e fiel : ,ino&)em: pulle out of t)e eal =)en !0OO! e&i e to re&onsi er an a&&ept t)e "raqi -overnment5s propose remuneration fee of G2?3> per barrel of oil pro u&e ? T(AO t)en joine t)e venture to fill t)e -ap? !0OO! an T(AO set t)e prou&tion plateau tar-et for t)e fiel at 45>:>>> barrels per ay 6bp 7? !0OO! )ol s a 63?35 per&ent sta#e in t)e venture: =)ile T(AO )ol s 11?25 per&ent 11;; an t)e "raq *rillin- !ompany 6"*!7 )ol s a 25 per&ent sta#e?11;5

Production and e#port

As of 2>1>: t)e /aysan fiel s =ere pro u&in- at a level of <>:>>> bp ? 11;<

*iddle Furat Oil Fields

Oil Reserves *is&overe 2o&ation (rin&ipal (artners 6>> million barrels of oil11<> 1<6>: 1<;3: 1<;1 1arbala -overnorate: !entre? state-mana-e

T)e /i

le $urat area is a &luster of t)ree un evelope oil fiel s lo&ate in 1arbala

11;5 5"nternational A&tivities5: /PA0: retrieve 13 *e&ember 2>11? 11;6 5!0OO!: T(AO finaliEe /issan fiel s &ontra&t5: Ira' 0il !e1ort: 13 /ay 2>1>? 11;3 5"raqA Oil an .as 2e-islation: Revenue ,)arin-: an +?,? (oli&y5: Congressional !esearch Service: 3 0ovember 2>><? 11;; 5+(*AT% 2-"raq in eal =it) !0OO!: T(AO for /aysan oilfiel s5: !euters: 13 /ay 2>1>? 11;< 5"raq to *ouble Oil Output from /aysan $iel s5: B)%igest: retrieve 13 *e&ember 2>11? 11<> 50o bi s for /i le $urat fiel s5: Ira' 0il !e1ort: 12 *e&ember 2>><?

2>5

-overnorate in &entral "raq: sout) of Al-RaEaEa 2a#e? T)e fiel s =ere is&overe in 1<6> 61ifl7: 1<;3 6/erjan7 an 1<;3 64est 1ifl7? 11<1 1arbala provin&e is )ome to one of t)e )oliest &ities in ,)i5ite "slam?11<2 T)e appro'imate siEes of t)e fiel s are 2?5 #ilometres 6#m7 by 2 #m 6/erjan7: 1> # m by ; #m 64est 1ifl7 an 5 #m by 1?5 #m 61ifl7?11<1

Contract ne5otiations
T)e &ontra&t area =as put up for bi in- in "raq5s se&on post-=ar li&ensin- roun ? Co=ever on t)e 12 *e&ember 2>>< "raq5s (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*7 announ&e t)at no bi s )a been re&eive for t)e /i le $urat &ontra&t area?11<3 "n /ay 2>1>: oil minister Cussein ,)a)ristani announ&e t)at t)e -overnment =as &onsi erin- invitin- forei-n &ompanies to evelop t)e fiel s? 11<4

Nahr ,in 3mar Oil Field

Oil Reserves Oil (ro u&tion %stimate .as in (la&e *is&overe 2o&ation (rin&ipal (artners 6?5 billion barrels11<5 5>:>>> barrels of oil per ay 62>><711<5 12 b&f11<6 1<4>s Basra (rovin&e: ,out)? state-mana-e

T)e 0a)r Bin +mar fiel 6also #no=n as t)e 0a)r +mr fiel 7 is lo&ate in sout)ern "raq: 15 #ilometres 6#m7 to t)e nort) of Basra? T)e eposit &overs an area rou-)ly 4> #m lon- by 25 #m =i e an =as first rille in 1<4;?11<3 $ran&e5s Total a-ree to survey t)e fiel in 2>>;? T)ey estimate t)at it )el 6?6 billion barrels of &ru e an 12 billion &ubi& feet 6b&f7 of natural -as? 11<6

11<1 5/i le $urat5: Ira' )nergy: retrieve 13 *e&ember 2>>11? 11<2 50o bi s for /i le $urat fiel s5: Ira' 0il !e1ort: 12 *e&ember 2>><? 11<3 5"raqMs ,e&on (etroleum 2i&ensin- Roun A /i le $urat !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Licensing %irectorate : 12 *e&ember 2>><? 11<4 5"raq mulls invitin- &os to evelop $urat oilfiel s5: !euters: 13 /ay 2>1> 11<5 5T)ree "O!s in bilateral ne-otiations as "raq attempts to improve li&ensin- roun terms5: A()info 24 /ar&) 2>><? 11<6 5Total ,ee#s "raqi Oil $iel s in Return to Roots5: ulf 0il 8 as, 12 $ebruary 2>><? 11<3 5T)e *evelopment (lans of 0a)r +mr $iel for t)e 0e= /illenium5: (ohammad Al3 ailani, retrieve 14 *e&ember 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 )ol in- ne-otiations =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 ma e an "raq5s state-o=ne ,out) Oil !ompany 6,O!7 =as evelopin- t)e fiel ?

Production and e#port

"n ,eptember 2>1>: t)e ,O! e&i e to in&rease t)e fiel 5s pro u&tion to 3>:>>> barrels per ay 6bp 7 by t)e last quarter of 2>11?11<<

Na;mah Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners ;>3 million barrels12>> nTa 1<3412>> 0ineve) -overnorate: 0ort)? ,onan-ol 635V712>1 0ort) Oil !ompany 625V712>1

T)e 0ajma) oil fiel =as is&overe in 1<34 an is situate in 0ineve) -overnorate: 5> #ilometres 6#m7 sout) of /osul &ity?12>2 T)e fiel is 11 #m lon- an 4?5 #m =i e12>3

Contract ne5otiations
An-olan oil &ompany ,onan-ol =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)e Oil /inistry announ&e on t)e 12 *e&ember 2>>< t)at t)e &ompany )a been a=ar e t)e &ontra&t area? 12>2 T)e &ontra&t spe&ifie t)e &onsortium =oul pay a +, G1>> million si-nature bonus? 12>2 ,onan-ol ori-inally offere to a&&ept a remuneration fee of G;?5> per barrel: but later
11<; 5T)ree "O!s in bilateral ne-otiations as "raq attempts to improve li&ensin- roun terms5: A()info 24 /ar&) 2>><? 11<< 50e= Fuarterly (ro u&tion Tar-ets for Basra5s Oilfiel s5: Ira' Business *e&s: 3 ,eptember 2>1>? 12>> 5,onan-ol ta#es 0ajma)5, Ira' 0il !e1ort: 12 *e&ember 2>><? 12>1 5*uo eye ,onan-ol5s "raqi assets5: U1stream 0nline: 1< Buly 2>1>? 12>2 5"raqMs ,e&on (etroleum 2i&ensin- Roun 0ajma) !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Licensing %irectorate : 12 *e&ember 2>><? 12>3 50ajma)5: Ira' )nergy: retrieve 12 *e&ember 2>11?

2>3

a&&epte t)e ma'imum fi-ure 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 6"*!7: also bore t)e &osts of evelopment of t)e fiel ? T)e 0ajma) fiel )ol s si-nifi&ant a&&umulations of )eavy oil 615 to 2>SA("7? 12>4 Reports by t)e BB! su--este t)at t)e )i-) fees pai for t)e &ontra&t area to ,onan-ol 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

+n er t)e &ontra&t: t)e &ompany &ommitte un er t)e a-reement to rea&)in- a prou&tion plateau of 11>:>>> barrels per ay 6bp 7: an )ol in- it for nine years? 12>6 "n /ar&) 2>11 ,onan-ol starte =or# at t)e 0ajma) fiel an =as ue to start to i=ells in April 2>11: a&&or in- to a report from As&at al3Ira'?12>3

Nasiriyah Oil Field

Oil Reserves Oil (ro u&tion $irst (ro u&e 2o&ation (rin&ipal (artners 4?4 billion barrels12>; 12:>>> bp 62>12712>< 2>>< ,out) of Ba-) a ? state-mana-e

T)e 0asiriya) fiel : lo&ate sout) of t)e &apital Ba-) a an =it) an estimate 4?4 billion barrels of &ru e reserves: =as not in&lu e in eit)er of "raq5s 2>>< bi in- roun s?

Contract ne5otiations
A Bapanese-le &onsortium: in&lu in- 0ippon Oil !orporation: rea&)e an a&&or in prin&iple =it) t)e "raqi -overnment in Au-ust 2>>< for oil evelopment ri-)ts at t)e fiel : but ne-otiations =ere effe&tively suspen e in Banuary 2>1>? T)e Bapanese &onsortium )a submitte bi s for t)e &ontra&t to "raq5s Oil /inistry in $ebruary 2>>< alon- =it) ,pain5s Repsol an "taly5s %ni? "n Banuary 2>11 Bapanese tra e minister A#i)iro O)ata ma e an unannoun&e visit to Ba-) a an &alle on t)e "raqi -overnment to resume ne-otiations =it) a -roup of Bapanese firms over t)e evelopment of t)e 0asiriya): but =it)out su&&ess? T)e "raqi -overnment subsequently ma e t)e e&ision
12>4 50ajma)5: Ira' )nergy: retrieve 12 *e&ember 2>11? 12>5 5"raq oil &ontra&t -oes to An-ola5s ,onan-ol5: BBC *e&s: 3> *e&ember 2>><? 12>6 5"raqMs ,e&on (etroleum 2i&ensin- Roun 0ajma) !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum and Licensing %irectorate: 12 *e&ember 2>><? 12>3 5,onan-ol to ,tart 4or# on 0ine=a Oilfiel s5: Ira' Business *e&s: 14 /ar&) 2>11? 12>; 5"raq to evelop 0asiriya) oilfiel alone5: ())%: 1 /ar&) 2>1> 12>< 50asiriya) oil fiel pro u&tion =ill rise to 35 t)ousan barrels per ay5: /he Ira'i %inar: 1> ,eptember 2>12?

2>;

to evelop t)e 0asiriya) oil fiel on its o=n?12>; Co=ever in Au-ust 2>12 "raq5s (etroleum !ontra&ts an 2i&ensin- *ire&torate 6(!2*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 &onsi ere as a sin-le proje&t? 121>

Production and e#port

"n Bune 2>><: t)e &)ief en-ineer at t)e fiel tol press t)at pro u&tion =as ue to start imminently an t)at oil from t)e fiel =oul be transferre to Basra via pipeline? 1211 *)iya Baafar: )ea of t)e ,out) Oil !ompany 6,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- pro u&tion from 0asiriya) from 1>:>>> barrels per ay 6bp 7 to 5>:>>> bp by t)e en of 2>1>?I1212

<ayara Oil Field

Oil Reserves *is&overe $irst (ro u&e 2o&ation (rin&ipal (artners ,e&on ary (artners A(" ,pe&ifi&ity ;>> million barrels 62>1>71213 1<23 1<3>s 0ineve) -overnorate: ,out)-%ast? ,onan-ol 635V71214 ,out) Oil !ompany 625V71214 15

T)e ;>>-million barrel Fayara fiel is lo&ate in 0ineve): #no=n as one of t)e most an-erous re-ions of t)e &ountry? 1215 T)e fiel =as is&overe in 1<23 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 &ru e &ompare to t)e &ru es of ot)er "raqi fiel s?1213 "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 surroun in- fiel s &ontain lar-e a&&umulations of very sour soil 611-1;S A(" =it) 6?5-; per&ent sulp)ur7? Oil at Fayara itself )as an A(" -ravity of 15S: by far t)e lo=est amon- t)e ten fiel s offere at "raq5s
121> 50assiriya) Oilfiel an Refinery to be Offere as ,in-le !ontra&t5: Ira' Business *e&s: 31 Au-ust 2>12? 1211 50asiriya) fiel to be-in pro u&tion in "raq5: Arabian 0il and as: 2> Bune 2>><? 1212 5"raq to evelop 0asiriya) oilfiel alone5: ())%: 1 /ar&) 2>1> 1213 5"RAFA An-ola5s ,onan-ol si-n "raqi oilfiel eals5: I/*: 2; Banuary 2>1>? 1214 5*uo %ye ,onan-ol5s "raqi Assets5: Ira' )nergy: 2> Buly 2>1>? 1215 5"raq oil &ontra&t -oes to An-ola5s ,onan-ol5: BBC: 3> *e&ember 2>><? 1216 5"RAF - T)e /ain $iel s "n T)e 0ort)5: 4ree Library: retrieve 12 *e&ember 2>11? 1213 5,onan-ol =ins oil eals in "raq5s ris#iest re-ion5: !euters: 12 *e&ember 2>><?

2><

se&on bi

in- roun ? 121;

Contract ne5otiations
"n *e&ember 2>><: t)e fiel =as a=ar e by t)e "raqi -overnment to An-olan ,onan-ol in t)e se&on bi in- roun : =)en t)e &ompany =as t)e sole bi er for t)e &ontra&t?121< ,onan-ol si-ne a eal =it) t)e "raqi -overnment on t)e 26 Banuary 2>1> to ta#e a 35 per&ent sta#e in a venture to e'ploit t)e Fayara fiel ? +n er t)e terms of t)e eal: ,onan-ol re&eive a remuneration fee of G5 per barrel an )as sai t)at it =oul invest +, G2 billion at t)e fiel ? A&&or in- to !euters: t)e oil &ompany &oul start re&overin&osts on&e pro u&tion levels )it 3>:>>> barrels per ay 6bp 7? 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 ten er: refle&tin- t)e se&urity ris#s in t)e re-ion an t)e relatively lo= quality of t)e oil at t)e site?1221 Ori-inally: 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'&lu e t)e &ost of fa&ilities to li-)ten t)e )eavy oil: a&&or in- to a senior ,onan-ol offi&ial? T)e &onsortium is &ommitte un er t)e a-reement to rea&)in- a pro u&tion plateau of 12>:>>> bp : an )ol in- it at t)at level for nine years?1222

Rumaila Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 13?3 billion barrels1223 1?35 million bp 62>1271224 1<531223 Basra: ,out)? B( 63;V7: !0(! 633V71225 ,out) Oil !ompany 625V7

Rumaila: to-et)er =it) t)e nort)ern 5super-iant5 1ir#u# fiel : )ave )istori&ally ma e up most of "raq5s oil pro u&tion?1226: an as of 2>12 pro u&tion at Rumaila ma e up for
121; 5"RAF - T)e /ain $iel s "n T)e 0ort)5: 4ree Library: retrieve 12 *e&ember 2>11? 121< 5"raq fails to a=ar &ontra&t for Fayara oilfiel 5: Allrroya: 12 *e&ember 2>><? 122> 5$A!TBOZ-Oil eals bet=een "raq an -lobal majors5: !euters: 26 $ebruary 2>1>? 1221 5*uo %ye ,onan-ol5s "raqi Assets5: Ira' )nergy: 2> Buly 2>1>? 1222 5,onan-ol =ins oil eals in "raq5s ris#iest re-ion5: !euters: 12 *e&ember 2>><? 1223 5Ci-)s An 2o=s $or "raqMs Rumaila Oil $iel 5: Commodities Universe: 23 O&tober 2>11? 1224 5+(*AT% 2-B( proposes &uts to "raq5s Rumaila tar-et-sour&es5: !euters: 13 *e&ember 2>12? 1225 5B( an !0(! to *evelop "raq5s ,uper-.iant Rumaila $iel 5: BP: 3 0ovember 2>><? 1226 5"raqMs $irst (etroleum 2i&ensin- Roun Rumaila !ontra&t Area Bi in- Results5: Petroleum

21>

more t)an a t)ir of "raq5s total &ru e output? 1223 (rior to 2>>< Rumaila =as seen as t=o &ontra&t areas: Rumaila 0ort) an Rumaila ,out): but in t)e 2>>< bi in- roun s t)ey =ere bun le to-et)er into one asset?122; T)e fiel is lo&ate in t)e Basra re-ion of sout)ern "raq: about 2> miles from t)e 1u=aiti bor er? *is&overe in 1<53 urin- an e'pe ition by Britis) (etroleum: it =as nationalise by ,a am Cussein an subsequently be&ame "raq5s &)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 &ountry5s oil pro u&tion?122< Rumaila5s 13?3 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 tar-et for rillin-? 122< T)e oil at t)e site is s=eet 6lo= 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 ori-inally 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&line 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&lu e a si-nature bonus of +, G5>> million: =)i&) =as inten e to be a 5soft loan5 repayable over five years? 1231 T)e !0(! per&enta-e of o=ners)ip in t)e &onsortium appears to )ave si-nifi&antly in&rease bet=een t)e mi -2>>< bi an =)en t)e eal =as si-ne in 0ovember? A Bune 2>>< press release announ&e t)at B( )el a 66?63 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 6,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 in i&ate t)at t)e split =as 3; per&ent to B(: 33 per&ent to !0(! an 25 per &ent to t)e "raqi state? T)e B(-le &onsortium offere to ta#e pro u&tion to 2?;5 million barrels per ay 6bp 7: 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 pro u&tion tar-et to bet=een 1?; million an 2?2 million bp : on t)e ba&# of problems provo#e by a-eininfrastru&ture: re tape an a la&# of &lear oil le-islation? 1232

Licensing and Contracts %irectorate: 3> Bune 2>><? 1223 5B( see#s &ontra&t revamp on "raq oilfiel 5: 4inancial /imes: 16 *e&ember 2>12? 122; 5B(: !0(! to rill =ells to boost Rumaila output5: Bloomberg: 25 April 2>1>? 122< 5Ci-)s An 2o=s $or "raqMs Rumaila Oil $iel 5: Commodities Universe: 23 O&tober 2>11? 123> 5B( in Rumaila5: BP: 16 $ebruary 2>1>? 1231 5(etroleum !ontra&ts an 2i&ensin- *ire&torate: /inistry of Oil 5: press release Bune 3>: 2>><? 1232 5+(*AT% 2-B( proposes &uts to "raq5s Rumaila tar-et-sour&es5: !euters: 13 *e&ember 2>12?

211

Production and e#ports

A&&or in- to a B( press release: t)e Rumaila $iel Operatin- Or-anisation 6ROO7 =ill mana-e 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 mana-ers from B( an !0(!?1233 Over t)e &ourse of 2>1> B( an !0(! rille only 41 out of t)e 3> =ells ori-inally planne ?1234 Co=ever t)e -eneral mana-er of t)e ROO state at a &onferen&e in 2>11 t)at t)e &onsortium =as plannin- to in&rease pro u&tion by aroun 1> per&ent: or 13>:>>> barrels per ay 6bp 7: at Rumalia in 2>12? T)is =as )ope to boost output to aroun 1?43 million bp ?1235 Co=ever by t)e en of 2>12 t)e fiel =as pro u&in- only aroun 1?35 million bp ?1232 T)rou-) 2>11 pro u&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 pro u&tion =)i&) =as promptly resume after repairs? A furt)er e'plosion )it Rumaila in O&tober: sai to be a bombin- tar-etin- pipeline net=or#s? T)ree ays later anot)er e'plosion o&&urre =)en a pile of mines e'plo e prematurely =)ile beinispose of: #illin- t=o army offi&ers an four eminers? 1236

%iba 0as Field

%stimate .as in (la&e .as in (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 1?1 t&f1233 nTa 1<6;123; Basra -overnorate: ,out)? 1u=ait %ner-y !ompany 645V7123< T(AO 63>V7: /aysan Oil !ompany 625V7123<

T)e ,iba -as fiel is situate t)e sout)ern Basra -overnorate: some 3> #ilometres 6#m7 sout)-east of Basra &ity? T)e fiel is appro'imately 21 #m lon- an 6-13 #m =i e? 124>

1233 5B( an !0(! to *evelop "raq5s ,uper-.iant Rumaila $iel 5: BP: 3 0ovember 2>><? 1234 5(etrofa& BD sna-s Rumaila job5: 0il 0nline: 2< Bune 2>11 1235 5"raq Aims to +p Rumaila Oilfiel Output by 1> (&t5: Ira' )nergy: 1; 0ovember 2>11? 1236 5Ci-)s An 2o=s $or "raqMs Rumaila Oil $iel 5: Commodities Universe: 23 O&tober 2>11? 1233 51u=ait %ner-y: T(AO: 1aE/unai.aE .et "raq .as A=ar s5: Bloomberg: 2> O&tober 2>1>? 123; 5"ran-"O/ - ,iba .as $iel 5: )nergy "orld: retrieve 12 *e&ember 2>11? 123< 5"raq-,iba5: +u&ait )nergy Com1any: retrieve 12 *e&ember 2>11? 124> 5,iba5: Ira' )nergy: retrieve 12 *e&ember 2>11?

212

Contract ne5otiations
At "raq5s t)ir post-=ar li&ensin- roun in 2>1>: t)e ,iba &ontra&t area attra&te a total of t=o bi s from t)ree &ompanies? T)e =innin- bi &ame from a &onsortium of 1u=ait %ner-y !ompany an Tur#is) T(AO: =)o propose a remuneration fee of G3?5> per barrel of oil equivalent 6boe7 an a pro u&tion plateau of 1>> million stan ar &ubi& feet 6//s&f7 per ay? T)ey outbi an offer from 1aEa#)stan5s 1aE/unay.as: =)o propose a remuneration fee of G16 per boe? 1241 T(AO tol press in Bune 2>11 t)at t)e t=o partners e'pe&te to invest +, G1 billion in t)e fiel ? 1242 +n er t)e terms of t)e &ontra&t: =)i&) =ill last for 2> years: 1u=ait %ner-y =ill be t)e operator at ,iba =it) a 45 per&ent s)are in t)e venture? T(AO )ol s a 3> per&ent interest an t)e remainin- 25 per&ent is )el by t)e state-o=ne /aysan Oil !ompany 6/O!7?1243 1u=ait %ner-y !)airman /anssour Abou#)amseen referre to t)e eal as La si-nifi&ant milestone for 1u=ait %ner-yK 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 Au-ust 2>12 "raq5s Oil /inistry si-ne a &ontra&t =it) 1u=ait %ner-y 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=aitinevelopment?1243

-est <urna Field Phase &!

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners ;?3 billion barrels1246 4>>:>>> bp 6O&t 2>1271243 1<33 Basra -overnorate: ,out)-east? %''on/obil 66>V7124; ,)ell 615V7: Oil %'ploration !ompany 625V7124<

1241 5"raqMs T)ir (etroleum 2i&ensin- Roun ,iba !ontra&t Area J Bi in- Results5: (inistry of 0il Petroleum Contracts and Licensing %irectorate: 2> O&tober 2>1>? 1242 5+(*AT% 1-"raq to si-n /ansuriya): ,iba -as eals Bune 55: !euters: 1 Bune 2>11? 1243 5"raq-,iba5: +u&ait )nergy Com1any: retrieve 12 *e&ember 2>11? 1244 5$uture .as %'ports $rom "raq $iel s (ossibleA A viser5: Arab /imes: retrieve 12 *e&ember 2>11? 1245 5m5: Ira' Business *e&s: retrieve 12 *e&ember 2>11? 1246 5%''on ups oil tar-et for "raq5s 4est Furna ()ase 15: !euters: 2; 0ovember 2>1>? 1243 5%''on see#s to quit fla-s)ip "raq oil proje&t5: !euters: 1; O&tober 2>12? 124; 5"raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s5: James Baker III Institute for Public Policy, !ice University: Buly 2>11?

213

T)e 5super -iant5 4est Furna oil fiel in sout)ern "raq is lo&ate in Basra -overnorate? T)e fiel &omprises of t=o separate li&ense areas: ()ase 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 4est Furna fiel is lo&ate aroun 5> #ilometres 6#m7 nort)-=est of t)e &ity of Basra? Overlappin- t)e nort)ern e -e of t)e Rumaila fiel : 4est Furna &an be re -ar e -eolo-i&ally as a stru&tural e'tension of 0ort) Rumaila: but =as esi-nate a separate fiel for non-te&)ni&al reasons? "t is &onsi ere a separate asset for evelopment?1251

Contract ne5otiations
4est Furna ()ase 1 =as a=ar e 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 bi s re&eive urin- t)e first roun of &ompetitive bi in-? 1252 At t)e ori-inal offerin- in Buly 2>>< t)e bi s 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 remuner ation fee of G4: =)i&) =as t)en revise to G3?3> as part of an 5a itional bi 5: =)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 ? +n er t)e eal: t)e sta#es =ere split as fol lo=sA %''on/obil 66> per&ent7: ,)ell 615 per&ent7 an t)e "raqi state 625 per&ent7? 1253 +n er t)e &ontra&t: t)e &ompanies =ere to be pai a fee of G1?<> a barrel for t)e oil t)ey pro u&e at t)e site? Analyst ,amuel !isEu# &ommente t)at t)e eal =as Ia biloss for 2u#oilK =)i&) i =or# on 4est Furna =)en ,a am Cussein rule "raq an =)i&) )a Ireally been eyein- t)is fiel ?K1252 T)e &onsortium si-ne t)e final &ontra&t =it) t)e /inistry of Oil on t)e 25 Banuary 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 si-ne =it) t)e 1ur istan Re-ional .overnment 61R.7 in t)e nort)? A&&or in- to *ere# Bro=er of t)e Petroleum )conomist: Russian 2u#oil an !)inese !0(!: bot) of =)i&) )ave sta#es in ot)er fiel s 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< 5"raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s5: James Baker III Institute for Public Policy, !ice University: Buly 2>11? 125> 54est Furna 6()ase 275: Ira' )nergy: retrieve 13 *e&ember 2>1>? 1251 5"raqMs $irst (etroleum 2i&ensin- Roun : 4est Furna !ontra&t Area J Bi in- Results: Petroleum Contracts and Licensing %irectorate: 2 Buly 2>><? 1252 5%''on: ,)ell 4in "raqMs 4est Furna Oilfiel !ontra&t 6+p ate375: Bloomberg: 5 0ovember 2>><? 1253 50e= stability an prospe&ts for 1ur is) oil an -as5: )uro1ean Centre for )nergy and !esource Security: < *e&ember 2>11? 1254 54ill "raq be t)e ne't oil superpo=erH5: 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 pro u&tion plateau at 4est Furna 1 to 2?;25 million bp 6from t)e ori-inal plateau tar-et of 2?325 bp on si-nin-7 after a in- ne= reserves to t)e area &overe by t)eir ori-inal evelopment &ontra&t? Ce note t)at un er a re)abilitation plan for t)e fiel : t)e &onsortium =as plannin- to boost output from t)e fiel to aroun 35>:>>> 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 in ustry analysts quote by t)e Petroleum )conomist ar-ue t)at ue to isappointin- pro u&tion levels an t)e lo= remuneration fee of G1?<> per barrel: 4est Furna 1 turne into a lossma#er for %''on/obil? T)e &ompany5s priority =as to ramp up pro u&tion qui&#ly an &)eaply: =)i&) i not )appen? $urt)ermore: payments from t)e "raqi -overnment for oil pro u&e =ere =ere elaye ?1254

-est <urna Field Phase 1!

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 13 billion barrels1253 nTa 1<33 Basra -overnorate: ,out)-east? 2u#oil 656?25V7125; ,tatoil 61;?35V7: ,out) Oil !ompany 625V7125;

4est Furna-2 is t)e se&on portion of t)e 5super -iant5 4est Furna fiel ma e available for li&ensin-?125< T)e fiel =as is&overe by ,oviet -eolo-ists in 1<33 an as of 2>12 =as t)e se&on bi--est un evelope fiel in t)e =orl =it) aroun 13 billion barrels of re&overable oil reserves?1253

Contract ne5otiations
()ase 2 of t)e 4est Furna fiel =as put up for bi in- at "raq5s se&on li&ensin- roun of 2>><? T)e fiel =as amon- t)e first t=o fiel s offere on t)e se&on bi in- ay:
1255 5%''on ups oil tar-et for "raq5s 4est Furna ()ase 15: !euters: 2; 0ovember 2>1>? 1256 5%''on see#s to quit fla-s)ip "raq oil proje&t5: !euters: 1; O&tober 2>12? 1253 52u#oil to invest G4 bln in 4est Furna-2 in 2>135: Interfa5: < O&tober 2>12? 125; 5"raqi Oil (otential an "mpli&ations for .lobal Oil /ar#ets an O(%! (oliti&s5: James Baker Institute for Public Policy, !ice University: Buly 2>11? 125< 54est Furna 6()ase 275: Ira' )nergy: retrieve 13 *e&ember 2>1>?

215

=)i&) a&&or in- to a lea#e +, iplomati& &able attra&te 5stunnin-ly lo= pri&es5? T)e remuneration fee a&&epte for t)e =innin- bi by a 2u#oil-le &onsortium =as G1?15 per barrel an t)e a-ree tar-et pro u&tion plateau =as 1?; million barrels per ay 6bp 7? 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?32 respe&tively? 126> T)e remuneration fee =oul be payable on&e t)e &ontra&t area a&)ieve a pro u&tion level of 12>:>>> bp ? T)e plateau pro u&tion tar-et =as to be maintaine for 13 years an a si-nature bonus of +, G15> million =as also be payable? 1261 +n er t)e terms of t)e &ontra&t: Russian 2u#oil =oul lea t)e &onsortium =it) a 56?25 per&ent sta#e: ,tatoil =oul )ol a an 1;?35 per&ent sta#e an t)e "raqi state-o=ne ,out) Oil !om pany 6,O!7 =oul )ol t)e remainin- 25 per&ent?%rrorA Referen&e sour&e not foun

Production and e#port

As of O&tober 2>12 pro u&tion )a not yet be-un at 4est Furna-2? Co=ever An rei 1uEyaev: presi ent of 2u#oil Overseas: sai t)e &ompany planne to start pro u&tion in late 2>13 or early 2>14 at a level of 15>:>>> bp ? T)ey )ope to see pro u&tion rea&) 4>>-5>>:>>> bp by t)e en of 2>14? 2u#oil !%O Da-it Ale#perov also separately tol lo&al press t)at t)e &ompany e'pe&ts output of 1?3 million bp by 2>13? 1262

Dubair Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (rin&ipal (artners ,e&on ary (artners 4 billion barrels1263 23>:>>> bp 62>1271264 1<4< ,out) of Basra? %ni 632?;1V7 O&&i ental 623?44V7: 1o-as 61;?35V7: /aysan Oil !ompany 625V7

@ubair lies in t)e sout)-east of "raq: aroun 2> #ilometres 6#m7 sout)-=est of t)e &ity of Basra: an is one of "raq5s lar-est fiel s? 1265 T)e fiel is t)ou-) to )ol aroun 4 billion barrels of proven reserves?1266

126> 5Oil ,tampe eA "raq:s 2n Bi Roun Results5: "ikiLeaks: 14 *e&ember 2>><? 1261 5"raq5s ,e&on (etroleum 2i&ensin- Roun A 4est Furna 6()ase 27 !ontra&t Area J Bi inResults5: Petroleum and Licensing %irectorate: 12 *e&ember 2>><? 1262 5Russia5s 2u#oil to invest G4 bil in "raqi 4est Furna 2 proje&t in 2>135: Platts: 1> O&tober 2>12? 1263 5/uba ala plans to -ain part of O'y s)are in @ubair5: U1stream 0nline: 3> O&tober 2>><? 1264 5"raqA t)e @ubair oilfiel 5: (iddle )ast Confidential: 1 0ovember 2>12? 1265 5@ubair5: Ira' )nergy: retrieve 12 *e&ember 2>11? 1266 5"raq5s @ubair-%ni eal effe&tive T)urs ay-offi&ial5: !euters: 1; $ebruary 2>1>?

216

Contract ne5otiations
$ollo= "raq5s li&ensin- roun s of 2>><: an %ni-le &onsortium stru&# a eal =it) t)e "r aqi -overnment for t)e evelopment of t)e @ubair fiel ? +n er t)e &ontra&t: %ni )ol s a 32?;1 per&ent sta#e: O&&i ental (etroleum 23?44 per&ent: 1o-as 1;?35 per&ent an state-o=ne /aysan Oil !ompany 6/O!7 a furt)er 25 per&ent? 1263 A&&or in- to t)e &ontra&t: t)e &onsortium s)oul boost t)e fiel 5s pro u&tion by 1> per&ent from its startin- level of aroun 2>>:>>> barrels per ay 6bp 7: an =ill t)en earn G2 for ea&) e'tra barrel pro u&e ?126; T)e &onsortium initially as#e for G4?;> a barrel pro u&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 a-ree to pay t)e "raqi Oil /inistry +, G3>> million as a refun able five-year loan: instea of payin- a si-nature bonus?123>

Production and e#port

4)en %ni too# over t)e @ubair fiel it =as pro u&in- 1<5:>>> bp ? Co=ever a&&or into %ni5s fiel 5s e'pansion pro-ramme: pro u&tion is e'pe&te to rea&) a plateau level of 1?125 million barrels per ay 6bp 7 by 2>13? 1231 A&&or in- to %ni !%O (aolo ,&aroni in 2>12: t)e &onsortium to ate )a investe 4-5 billion euros into t)e proje&t 6rou-)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
Oil Reserves Oil (ro u&tion 2o&ation (artners 643 million barrels1232 1>5:>>> bp 62>1271233 1ur istan re-ion .enel %ner-y 655V7: A a' (etroleum 645V7

1263 5%ni: O&&i ental (etroleum an 1O.A, si-n t)e te&)ni&al servi&e &ontra&t =it) "raq5s ,out) Oil !ompany an /issan Oil !ompany to re evelop @ubair fiel 5: )ni: 22 Banuary 2>1> 126; 5%ni !onsortium to Re evelop @ubair $iel in "raq5: !ig#one: 22 Banuary 2>1>? 126< 5%ni !onsortium $inaliEes *eal to *evelop "raq Oil $iel 5: /he "all Street Journal: 25 Banuary 2>1>? 123> 5%ni ,?p?A?: O&&i ental (etroleum !orporation an 1orea .as !orporation ,i-n $inal *eal $or @ubair Oil $iel -*B5: !euters: 22 Banuary 2>1>? 1231 5%ni a=ar e t)e li&ense for t)e @ubair -iant fiel in "raq5: )ni: 13 O&tober 2>><? 1232 5Taq Taq (,!5: enel )nergy: retrieve 14 *e&ember 2>12? 1233 51ur istan Taq Taq oil e'ports rise a)ea of ,ept ea line5: !euters: 6 ,eptember 2>12?

213

A(" ,pe&ifi&ity

4;

T)e Taq Taq fiel : lyin- in t)e @a-ros basin =it)in t)e semi-autonomous 1ur istan re -ion of "raq: )as -ross 2( reserves of 643 million barrels? Co=ever .enel %ner-y believes t)at t)e fiel &oul potentially )ol one billion barrels of oil? T)e li&ense area is lo&ate 6> #ilometres 6#m7 nort)-east of t)e 1ir#u# oil fiel an a ja&ent to t)e &ity of 1ir#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? 1232 T)rou-) 2>12 =ells at t)e site )a to be spora i&ally s)ut- o=n as e'ports stoppe as a result of e'port isputes bet=een t)e 1ur istan Re-ional .overnment 61R.7 an Ba-) a ?1233

Contract ne5otiations
"n 2>>5 a pro u&tion s)arin- &ontra&t 6(,!7 =as si-ne for t)e evelopment of t)e Taq Taq fiel bet=een t)e 1R.: .enel %ner-y an A a' (etroleum 6a subsi iary of ,inope&7? .enel )ol s a 55 per&ent sta#e in t)e &ontra&t an A a' 45 per&ent? 1234

Production and e#port

T)e &ompanies operatin- at Taq Taq be-an pro u&in- oil in 2>>< at an initial level of 4>:>>> barrels per ay 6bp 7?1235 A&&or in- to !euters: as of ,eptember 2>12 t)e fiel =as pumpin- 1>5:>>> barrels per ay 6bp 7: =it) 55:>>> bp elivere by tan#er tru&# to 1)urmala for e'port via t)e -overnment-&ontrolle 1ir#u#-!ey)an pipeline? Of t)e remain er: aroun 35:>>> bp =as tru&#e to t)e nearby BaEian refinery an t)e rest store ? Cea of operations at t)e site: Boe ,tein: sai e'ports &oul be booste to 3>:>>> bp if nee e ? 1233 Co=ever .enel5s offi&ial =ebsite states t)e pro u&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&&or in- to .enel: t)e main obsta&le to in&reasin- t)e level of pro u&tion in 2>12 =as t)e infrastru&ture bottlene&# an &urrent tru&# transportation options: )o=ever notin- t)at t)e 1R. =as plannin- a ne= pipeline to transport pro u&e oil to t)e Tur#is) bor er?1236 Taq Taq pro u&es =)at )as been ubbe 5&)ampa-ne quality5 &ru e: ue to its very li-)t A(" -ravity of 4;S?1233

1234 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12? 1235 5"raq5s Taq Taq oil fiel to -ro= as it &omes online5: !euters: 31 /ay 2>><? 1236 5Taq Taq (,!5: enel )nergy: retrieve 14 *e&ember 2>12? 1233 51ur istan Taq Taq oil e'ports rise a)ea of ,ept ea line5: !euters: 6 ,eptember 2>12?

21;

9a$=e Oil Field

Oil Reserves Oil (ro u&tion *is&overe 2o&ation (artners 334 million barrels 2(123; 1>>:>>> bp 62>127123< 2>>6 1ur istan re-ion *0O 655V7: .enel %ner-y 625V7

T)e Ta=#e fiel is lo&ate in t)e semi-autonomous 1ur istan re-ion: &lose to "raq5s bor er =it) Tur#ey? T)e fiel =as is&overe in 2>>6 by 0or=e-ian *0O an )as -ross 2( reserves of 334 million barrels? T)e &ontra&t area e'ten s over 633 square #m? 123;

Contract ne5otiations
*0O ori-inally entere into a pro u&tion s)arin- &ontra&t 6(,!7 for t)e *o)u# area in 2>>4: of =)i&) t)e Ta=#e fiel =as a part? T)is ori-inal (,! =as amen e in 2>>; an &ause t)e ori-inal li&ense area to be split into t=o parts: =)i&) is )o= t)e Ta=#e li &ensin- area &ame into bein-?123; Co=ever in 2>1> a (,! =as si-ne bet=een t)e 1ur istan Re-ional .overnment 61R.7: .enel %ner-y an *0O? .enel )ol s 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 pro u&in- =ells: an 13 pro u&in- =ells by t)e en of 2>12? .enel )as a tar-et pro u&tion &apa&ity of 2>>:>>> barrels per ay 6bp 7 for Ta=#e by 2>14?123; "n 0ovember 2>12 *0O offi&ials announ&e t)at its pro u&tion at Ta=#e )a e'&ee e 1>>:>>> bp for t)e first time?123<

#isputed fields
8ir=u= Oil Field
Oil Reserves ;?3 billion barrels12;1 123; 5Ta=#e (,!5: enel )nergy: retrieve 14 *e&ember 2>12? 123< 5*0O pro u&tion e'&ee s 1>> t)ousan barrels in Ta=#e fiel in 1ur istan5: Shafa' *e&s: 15 0ovember 2>12? 12;> 54ill "raq be t)e ne't oil superpo=erH5: Petroleum )conomist: 12 *e&ember 2>12?

21<

Oil (ro u&tion *is&overe $irst (ro u&e 2o&ation

2;>:>>> bp 62>12712;2 1<23 1<34 1ir#u#: 0ort)?

1ir#u# is an oil fiel at Baba .ur-ur 65,t? BlaEe5 in 1ur is)7: one of "raq5s ol est pro u&in- fiel s: is lo&ate in t)e -overnorate of 1ir#u# in nort)ern "raq? "t =as is&overe in 1<23 an brou-)t into use by t)e "raq (etroleum !ompany 6"(!7 in 1<34? "t =as &on si ere t)e lar-est oil fiel in t)e =orl for aroun 2> years until ,au i Arabia5s .)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&lu e =it) international &ompanies: as of *e&ember 2>12 pro u&tion at t)e fiel =as bein- &arrie out by t)e 0ort) Oil !ompany 60O!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: 1ir#u# =as amon- t)e ei-)t fiel s on offer in "raq5s first post-=ar li&ensin- roun in 2>><? 12;5 T)e -overnment set a pro u&tion plateau of 6>>:>>> barrels per ay 6bp 7? A &onsortium le by ,)ell offere a pro u&tion plateau of ;25:>>> bp : )o=ever t)eir offer =as e&line be&ause t)e Oil /inistry &onsi ere t)e su--este remuneration fee of G3?;< 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 &onsi erin- a proje&t aime at revivin- e&linin- pro u&tion at 1ir#u#? T)is =oul ma#e B( t)e first forei-n &ompany to evelop t)e 1ir#u# eposit? Co=ever B( ma e no &omment on t)e reports? Oil fiel servi&e &ompanies ,&)lumber-er an Ba#er Cu-)es =ere also reporte to be intereste in t)e re- evelopment proje&t?12;2

12;1 5"raq Oil (ro u&tion 1ir#u# Oil $iel 5: 0il and as Articles: 21 /ar&) 2>>6? 12;2 5"raq =ants B( to revive nort)ern 1ir#u# oilfiel 5: !euters: 13 April 2>12? 12;3 5T)e 1ur is) battle for 1ir#u#5: "nternational Resour&e Bournal 2>>< 12;4 5"raq - %'tra&tive "n ustries5: !evenue "atch: retrieve 14 *e&ember 2>12? 12;5 5,)ell Rene-otiates =it) "raq for 1ir#u# $iel Ri-)t5s: !ig#one 16 O&tober 2>><? 12;6 5"raq rea ies to meet ,)ell over 1ir#u#5: 6a&ya: 1; O&tober 2>><

22>

Production and e#port

By 2>12 pro u&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 6"O!7 to boost pro u&tion at t)e fiel : in or er to raise &apa&ity to 6>>:>>> bp by 2>13?12;2 On&e oil is e'tra&te from t)e -roun at 1ir#u#: it is sent via t)e 1ir#u#-!ey)an Oil (ipeline to t)e Tur#is) port &ity of !ey)an: from =)ere it is s)ippe aroun t)e =orl ?12;3

Dispute over o$nership

T)e 1ir#u# fiel lies near t)e &ity of 1ir#u#: a &ity lon- ispute bet=een t)e &entral -overnment in Ba-) a an t)e 1ur is) Re-ional .overnment 61R.7 base in %rbil? Cistori&ally t)is area of "raq =as populate by ,)i5ite 1ur s: =)o ori-inally o&&upie a lar-e part of t)e Ottoman %mpire? ,in&e t)e fall of ,a am Cussein: many 1ur s feel t)at 1ir#u# s)oul be returne to t)em?12;3 "n Bune 2>>; t)ere =as a brief arme stan off bet=een t)e for&es of t)e 1R. an "raq5s &entral -overnment over one of t)e areas of 1ir#u# fiel : t)e 1)urmala *ome? Oil /inister Cussein ,)a)ristani sai t)e Ba-) a -overnment se&ure t)e area after 1ur is) pes)mer-a briefly stoppe t)e Oil /inistry from pro u&in- out of t)e fiel : at t)e time yiel in- about 3>:>>> bp ? 12;; 1R. offi&ials &laim t)eir ri-)t to mana-e t)e 1)urmala *ome on t)e -roun s t)at it falls =it)in %rbil -overnorate: =)i&) is an un ispute part of t)e 1R.? "raq5s &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 mana-e fiel s =)i&) are alrea y in pro u&tion to t)e fe eral level of -overnment?12;;

<uality of crude at 8ir=u=

1ir#u# normally pro u&es &ru e =it) an A(" -ravity of 35S: =it) 1?<3 per&ent sulp)ur &ontent? Co=ever bot) t)e A(" .ravity an sulp)ur &ontent reporte ly eteriorate s)arply in t)e mont)s just pre&e in- t)e =ar in 2>>3? 1ir#u#5s -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 mana-ement pra&ti&es urin- t)e ,a am Cussein years 6in&lu in- reinje&tion of e'&ess fuel oil: refinery resi ue an -asstrippe oil7 may )ave seriously: even permanently: ama-e 1ir#u#? Amon- ot)er problems: fuel oil reinje&tion )as in&rease oil vis&osity at 1ir#u#: ma#in- it more iffi&ult an e'pensive to -et oil out of t)e -roun ?12;<

12;3 51ir#u# Oil $iel - A Cistory of !onfli&t5: Commodities Universe: 2; O&tober 2>11? 12;; 5$uture of 1ir#u# $iel +n#no=n5: %ner-y *aily: 13 Bune 2>>; 12;< 5"raq Oil (ro u&tion 1ir#u# Oil $iel 5: 0il and as Articles: 21 /ar&) 2>>6?

221

222

Resource Trans#arency O##ortunities

9ransparency of Contracts
T)e ra=in- up of &ontra&ts is ne&essary in t)e e'tra&tive in ustries in or er to -ive pre&ise etail an le-al spe&ifi&ity to t)e obli-ations of a state an &ompany or &onsortium of &ompanies involve in a proje&t? /any &ontra&ts establis) important ta': environment an investment provisions =it) major impli&ations for a pro u&in- &ountry?12<> T)e 2>>< 5!ontra&ts !onfi ential5 report from Revenue 4at&) "nstitute 6R4"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 jurispru en&e on t)e ri-)t to information: =)i&) in&reasin-ly supports t)e is&losure of a-reements: as =ell as omesti& free om of information 6$O"7 la=s a&ross t)e =orl : are tren s =)i&) offer important tools of ar-ument an pro&e ure in brea#in- t)e barrier to is&losure =)ile balan&in- ot)er le-itimate interests?12<>

,enefits
A&&or in- to "n-ilab A)ma ov of t)e (ubli& $inan&e /onitorin- !enter in AEerbaijan: it is =i ely #no=n t)at a transparent 5&ompany-state5 relations)ip is a #ey fa&tor for resour&e-ri&) &ountries see#in- effi&ient mana-ement of t)eir natural resour&es to benefit &urrent an future -enerations? Ce ar-ues t)at &ontra&t transparen&y is ne&essary be&ause an outsi e observer =)o =is)es to &ompare similar &ontra&ts a&ross or =it)in &ountries nee s a =ay to etermine t)e e'tent to =)i&) it ta#es so&iety5s in terests into a&&ount? To ju -e 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 ar-ue 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 on t)e issue: Revenue 4at&) ar-ue t)at I&ontra&t transparen&y is &riti&al to a ressin- better resour&e mana-ement an brin-in- &ontra&t stability to an inustry t)at sees its &ontra&ts rene-otiate more t)an any ot)er?I12<>

12<> 5!ontra&ts !onfi entialA %n in- ,e&ret *eals in t)e %'tra&tives "n ustries5: !evenue "atch: 2>><? 12<1 54)y is oil &ontra&t transparen&y ne&essaryH5 :Public 4inance (onitoring Centre: retrieve 15 /ar&) 2>12?

223

Opposition and counter.ar5uments

One of t)e most &ommonly aire ar-uments a-ainst transparen&y of &ontra&ts is t)at t)is openness impairs a &ompany5s &ommer&ial interests an =ea#ens its &ompetitive position? !onX entiality &lauses are a &ommon an le-itimate feature in &ontra&ts bet=een private parties an are use to prevent information from &omin- into t)e )an s of publi& -roups?12<2 T)is assertion is &ontra i&te by proponents of transparen&y su&) as "n-ilab A)ma ov: =)o ar-ues t)at in ustry spe&ialists in any &ase are a=are of all or almost all &ontra&ts? .iven t)e )i-) level of information te&)nolo-y an &lose &ooperation on joint proje&ts in to ay5s oil in ustry: it is unrealisti& to maintain 5tra e se&rets5 as t)ey e'iste in t)e 1<;>s an 1<<>s? A&&or in- to A)ma ov: 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 ne-at ively from t)e e'posure: but on t)e &ontrary are able to benefit from a ba ly nee e en)an&ement of t)eir publi& ima-e?12<3 ,usan /aples: in )er report for R4": su--ests t)at one reason =)y &ompanies are not ea-er to embra&e &ontra&t transparen&y is t)at t)e information asymmetry bet=een ifferent parties resultin- from se&re&y arran-ements allo=s &ertain &ompanies an a vanta-e: enablin- t)em to ne-otiate more favourable &ommer&ial eals? /aples a mits t)at t)e ar-uments in support of &ontra&t se&re&y are not ne-li-ible ar-uments: but t)ey overloo# t)e spe&ial obli-ations 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 "n ustries Transparen&y "nitiative 6%"T"7 i not ma#e eman s on parti&ipatin- &ountries re-ar in- &ontra&t transparen&y? T)ere )ave been &alls from transparen&y a&tivists for t)e initiative to =i en its remit to in&lu e &ontra&t transparen&y? Co=ever %"T" representatives ar-ue t)at it is important t)at t)e %"T" retains pre&isely t)is ti-)t fo&us in or er to foster =i er &)an-e an provo#e e bate on broa er -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 -ui e -overnments5 an so&ieties5 use of natural resour&es so t)ese e&onomi& opportunities result in ma'imum an sustaine returns for a &ountry5s &itiEens? "t outlines tools an poli&y options esi-ne to avoi t)e mismana-ement of i12<2 5!ontra&ts !onfi entialA %n in- ,e&ret *eals in t)e %'tra&tives "n ustries5 !evenue "atch Institute: 2>><? 12<3 54)y is oil &ontra&t transparen&y ne&essaryH5 Public 4inance (onitoring Centre: retrieve 15 /ar&) 2>12? 12<4 54)at nee s to &)an-e for t)e %"T" remains relevantH5 )I/I: 2 O&tober 2>><?

224

minis)in- natural ri&)es: an ensure t)eir on-oin- benefits? 12<5

Foundation
T)e &)arter =as &on&eive by e&onomist (aul !ollier: as )e =or#e on )is boo# 5(lun ere (lanet5? Re&o-nisin- t)e pre&e ent set by t)e %'tra&tive "n ustries Transparen&y "nitiative 6%"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 mana-ement? A raft of t)e &)arter =as announ&e in $ebruary 2>><? 12<6 As =ell as !ollier: t)e &)arter =as sponsore by a number of a&a emi&s an t)e Revenue 4at&) "nstitute 6R4"7? 12<5 !ollier5s i ea is t)at natural resour&es are #ey to t)e evelopment of many &ountries: parti&ularly in Afri&a? But t)e reason so many &ountries )ave suffere from t)e 5resour&e &urse5 is a series of brea#s in a &ru&ial &)ain of e&isions require to ensure effe&tive e'ploitation of resour&esA t)e la&# of suffi&ient investment in t)e is&overy pro&ess: failure to impose a equate ta'ation: s)orta-e of omesti& investment of revenue: an t)e nee to Rinvest in investmentsM by buil in- &ivil servi&e &apa&ity to mana-e investment portfolios?12<3

Precepts
T)e &)arter is ma e 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 pro u&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 &)arter5s =ebsite?12<;

Overarching issues
O (re&ept 1A T)e evelopment of natural resour&es s)oul be esi-ne to se&ure ma'imum benefit for t)e &itiEens of t)e )ost &ountry? O (re&ept 2A %'tra&tive resour&es are publi& assets an e&isions aroun t)eir e'ploitation s)oul be transparent an subje&t to informe publi& oversi-)t?

Upstream issues
O (re&ept 3A !ompetition is a &riti&al me&)anism to se&ure value an inte-rity? O (re&ept 4A $is&al terms must be robust to &)an-in- &ir&umstan&es an ensure t)e &ountry -ets t)e full value from its resour&es?
12<5 50atural Resour&e !)arter5: !evenue "atch Institute: retrieve 15 Banuary 2>13? 12<6 50e= !)arter to )elp oil-ri&) poor &ountries - laun&)e to ay5: *atural !esource Charter: retrieve 24 O&tober 2>11? 12<3 !ollier: (aul 5 T)e (lun ere (lanetA 4)y 4e /ust--an Co= 4e !an--/ana-e 0ature for .lobal (rosperity5: 05ford University Press: 2>1>? 12<; 50atural Resour&e !)arter J (re&epts5: *atural !esource Charter: retrieve 24 O&tober 2>11?

225

O (re&ept 5A 0ational resour&e &ompanies s)oul be &ompetitive an &ommer&ial operations? T)ey s)oul avoi &on u&tin- re-ulatory fun&tions or ot)er a&tivities? O (re&ept 6A Resour&e proje&ts may )ave serious environmental an so&ial effe&ts =)i&) must be a&&ounte for an miti-ate at all sta-es of t)e proje&t &y&le? O (re&ept 3A 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
O (re&ept ;A %ffe&tive utilisation of resour&e revenues requires t)at omesti& e'pen iture be built up an -ra ually smoot)e to ta#e a&&ount of revenue volatility? O (re&ept <A .overnment s)oul use resour&e =ealt) as an opportunity to se&ure effe&tive publi& e'pen iture an to in&rease t)e effi&ien&y of publi& spen in-? O (re&ept 1>A .overnment poli&y s)oul fa&ilitate private se&tor investments in response to ne= opportunities an stru&tural &)an-es asso&iate =it) resour&e =ealt)?

Global responsibility
O (re&ept 11A T)e )ome -overnments of e'tra&tive &ompanies an international &apital &enters s)oul require an enfor&e best pra&ti&e? O (re&ept 12A 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 to-et)er by a -roup of lea in- international s&)olars? "n /ar&) 2>1>: t)e &)arter announ&e t)at it )a an a visory boar =)i&) in&lu es former presi ent of /e'i&o %rnest @e illo an Afri&an businessman /o "bra)im?12<<

+#tractive Industries 9ransparency Initiative +I9I!

+I9I compliance
!ountries see#in- to a&)ieve %"T" !an i ate status must meet five si-n-up require12<< 5T)e T=elve (re&epts5: *atural !esource Charter: retrieve 15 Banuary 2>13?

226

ments: an for a &ountry to a&)ieve %"T" &omplian&e: it )as t=o an a )alf years to be vali ate as a !ompliant &ountry? On&e a &ountry is !ompliant: t)e &ountry must uner-o Dali ation at least every five years: or upon t)e request from t)e %"T" "nternational Boar ?13>> As of Banuary 2>13: 1; &ountries =ere 5%"T" &ompliant5: namelyA AEerbaijan: .)ana: "raq: 1yr-yE Republi&: /auritania: /oEambique: 0i-eria: (eru: Timor-2este: @ambia: !entral Afri&an Republi&: 2iberia: /ali: /on-olia: 0i-er: 0or=ay: TanEania an 9emen? T)ere =ere a furt)er 1; 5!an i ate !ountries5A Af-)anistan: !ameroon: !)a : t)e *emo&rati&e Republi& of !on-o: .uineau: ,ao Tome an (rin&ipe: t)e ,olomon "slan s: Trini a an Toba-o: Albania: Bur#)ina $aso: !ote 5"voire: .abon: .uatemala: "nonesia: 1aEa#)stan: !on-o: ,ierra 2eone an To-o? /a a-as&ar =as temporarily suspen e at t)e time?13>1

5alidation re6uirements
Si4n-U3 T)e %"T" rules state t)at a &ountry applyin- for !an i ate status must meet t)e follo=in- si-n-up requirementsA
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 implementation of t)e %"T"? to appoint a senior in ivi ual to lea on t)e

4? T)e -overnment is require to establis) a multi-sta#e)ol er -roup to oversee t)e implementation of t)e %"T"? 5? T)e multi-sta#e)ol er -roup: in &onsultation =it) #ey %"T" sta#e)ol ers: s)oul a-ree an publis) a fully &oste =or# plan: &ontainin- measurable tar-ets: an a timetable for implementation an in&orporatin- an assessment of &apa&ity &onstraints?13>2

Pre3aration
T)e -overnment is require toA ensure t)e en-a-ement of &ivil so&iety in t)e pro&essN en-a-e &ompaniesN an remove le-al an re-ulatory obsta&les to t)e implementation of t)e %"T"? T)e multi-sta#e)ol er -roup is require to a-ree a efinition of materiality an t)e reportin- templates: =)i&) efine =)at revenue streams are in&lu e in &ompany an -overnment is&losures? T)e or-anisation appointe to pro u&e t)e %"T" re&on&iliation report must be per&eive as &re ible: 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>> 5%"T" "mplementation5: )I/I: retrieve 23 O&tober 2>11? 13>1 5%"T" !ountries5: )I/I: retrieve 15 Banuary 2>13? 13>2 5,i-n +p5: )I/I: retrieve 23 O&tober 2>11?

223

entities report an t)at bot) &ompany an -overnment reports are base on a&&ounts au ite to international stan ar s?13>3

%isclosure
!ompanies must &ompre)ensively is&lose all material payments in a&&or an&e =it) t)e a-ree reportin- templates: an -overnment a-en&ies must &ompre)ensively is&lose all material revenues? T)e multi-sta#e)ol er -roup must also be &ontent t)at t)e or-anisation &ontra&te to re&on&ile t)e &ompany an -overnment fi-ures i so satisfa&torily: an t)e re&on&iler must ensure t)at t)at t)e %"T" Report is &ompre)ensive: i entifies all is&repan&ies: =)ere possible e'plains t)ose is&repan&ies: an =)ere ne&essary ma#es re&ommen ations for reme ial a&tions to be ta#en?13>3

%issemination
T)e -overnment an multi-sta#e)ol er -roup must ensure t)at t)e %"T" Report is &ompre)ensible an publi&ly a&&essible to en&oura-e t)at its fin in-s &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)ol er -roup are en&oura-e to ta#e steps to a&t on lessons learne : a ress is&repan&ies an ensure t)at %"T" implementation is sustainable? "mplementin&ountries are require to submit Dali ation reports in a&&or an&e =it) t)e ea lines 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 or er to retain !ompliant status?12;2

$I)I criteria
1? (ubli&ationA Re-ular publi&ation of all material oil: -as an minin- payments by &ompanies to -overnments 65payments57 an all material revenues re&eive by -overnments from oil: -as an minin- &ompanies 65revenues57 to a =i e au ien&e in a publi&ly a&&essible: &ompre)ensive an &ompre)ensible manner? 2? Au itA 4)ere su&) au its o not alrea y e'ist: payments an revenues are t)e subje&t of a &re ible: in epen ent au it: applyin- international au itin- stan ar s? 3? Re&on&iliationA (ayments an revenues are re&on&ile by a &re ible: in epen ent a ministrator: applyin- international au itin- stan ar s an =it) publi&ation of t)e a ministratorMs opinion re-ar in- t)at re&on&iliation in&lu in- is&repan&ies: s)oul any be i entifie ?

13>3 5%"T" Rules5: )I/I: retrieve 23 O&tober 2>11?

22;

4? ,&opeA T)is approa&) is e'ten e to all &ompanies in&lu in- state-o=ne enterprises? 5? !ivil ,o&ietyA !ivil so&iety is a&tively en-a-e as a parti&ipant in t)e esi-n: monitorinan evaluation of t)is pro&ess an &ontributes to=ar s publi& ebate? 6? 4or# (lanA 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&lu in- measurable tar-ets: a timetable for implementation: an an assessment of potential &apa&ity &onstraints?13>4

+I9I in Iraq
"raq si-ne up to %"T" in $ebruary 2>1> an issue a raft of its first re&on&iliation report 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 %i-en in Ba-) a in O&tober 2>>; 13>6? T)e "raq %"T" 6"%"T"7 2aun&) !onferen&e too# pla&e on <-1> Banuary 2>1>: =)en (rime /inister 0ouri al-/ali#i announ&e "raq5s formal &an i a&y 13>3? T)e first "%"T" ,ta#e)ol er !oun&il meetin- =as )el on 22-23 ,eptember 2>1>? !ivil so&iety =as represente by several or-anisations: an in 2>11 forme a &oalition -roupin- more t)an 4> or-anisations aroun t)e %"T" initiative? On t)e 12 *e&ember 2>12 "raq =as e&lare a 5&ompliant &ountry5 by t)e %"T" Boar on t)e basis of a final vali ation report release in Au-ust 2>12? A&&or in- to t)e offi&ial %"T" =ebsite: protra&te an iffi&ult ne-otiations too# pla&e bet=een t)e "%"T" an t)e 1ur istan Re-ional .overnment 61R.7: but t)e 2>1> report=ill &over 1ur istan5s oil an -as pro u&tion an revenues: =)i&) =ill be refle&te in a separate &)apter? 13>; *espite "raq5s )istory of &ollaboration =it) t)e %"T": Revenue 4at&) "nstitute 6R4"7 )i-)li-)ts a la&# of a=areness amon- &ivil so&iety: parti&ularly in t)e nort)ern 1ur is) re-ion: as an obsta&le?13><

7irst Reconciliation Report8 December ./11

T)e first re&on&iliation report =as issue by "raq5s %"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- Or-anisation 6,O/O7 in sales of "raqi oil to international buyers? "t initially s)o=e a is&repan&y of G1?>< billion bet=een fi-ures reporte by ,O/O an t)ose of t)e buyin- &ompanies but t)ese =ere all subsequently e'plaine in follo=-up &onsultations: sai t)e report: prepare by (ri&e 4ater)ouse !ooper?
13>4 5%"T" Rules5: )I/I: retrieve 23 O&tober 2>11? 13>5 5%n-lis) "%"T" Report5: )I/I: retrieve 11 Banuary 2>12? 13>6 5%"T" ,e&retariat5s "raq pa-e5: )I/I: retrieve 11 Banuary 2>12? 13>3 5"raq Boins .lobal Transparen&y %ffort5: P".P: retrieve 11 Banuary 2>12? 13>; 5"raq %"T"5: )I/I9, retrieve 15 Banuary 2>13? 13>< 5Raisin- %"T" A=areness Amon- !,Os in "raqMs 0ort)ern 1ur is) Area5: !evenue "atch: retrieve 15 Banuary 2>13?

22<

T)e report also re&on&ile t)e p)ysi&al quantities of oil sent from "raq5s t=o main prou&in- &ompanies: rt)e 0ort) Oil !ompany 60O!7 an t)e ,out) Oil !ompany 6,O!7: to ,O/O? T)e report use a isa--re-ate system: listin- 34 &ompanies =)i&) )a bou-)t oil from ,O/O urin- 2>>< an furt)er brea#in- up t)e fi-ures into re-ional mar#ets? T)e top t)ree buyin- &ompanies =ere t)e "n ian Oil an .as &ompany: =it) over four billion ollars =ort): %''on/obil =it) over t)ree billion ollars: Total =it) just un er t)ree billion ollars: an B( =it) over t=o billion ollars?
Co"pany /a"e "0*"A0 O"2 !OR(ORAT"O0 2"/"T%* - "0*"A !C%DRO0 (RO*+!T, !O/(A09 %ZZO0/OB"2 ,A2%, A0* ,+((29 22!? +?,?A TOTA2 "0T%R0AT"O0A2 2"/"T%* J $RA0!% !O0O!O(C"22"(, "0T%R0AT"O0A2 TRA*"0. (T%? 2T*? ,"0O!C%/ "0T%R0AT"O0A2 O"2 62O0*O07 !O? 2T* B( O"2 "0T%R0AT"O0A2 2"/"T%* J 2O0*O0 DA2%RO ,+((29 A0* /AR1%T"0. !O/(A09 %0" !O/(A09 ,C%22 "0T%R0AT"O0A2 %A,T%R0 TRA*"0. !O/(A09 2"/"T%* ,1 %0%R.9 %+RO(% 2"/"T%* R%(,O2 9($ TRA*"0. 9 TRA0,(ORT ,?A? 1O!C ,+((29 A0* S+0+ 4:6<5:536:254 'uyer 4:5>>:344:331 1ariance -1<4:;31:522

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TRA*"0. 2?( !C"0A @C%0C+A O"2 !O? 2T*? (%TRO2"O BRA,"2%R"O ,?A? J (%TROBRA, T+R1",C (%TRO2"+/ R%$"0%R"%, !OR(? 6T+(RA,7 J T+R1%9 /"T,+B",C" !OR(ORAT"O0 !O/(A0"A %,(A0O2A *% (%TRO2%O,: ,?A? 6!%(,A7 /OTORO"2 6C%22A,7 +0"(%! A,"A !O? 2T*? ,O!"%T% A0O09/% /ARO!A"0% *% 25"0*+,TR"% *+ RA$$"0A.% 6,A/"R7 C"0*+,TA0 (%TRO2%+/ !OR(ORAT"O0 2T*? J "0*"A BZ 0"((O0 O"2 8 %0%R.9 !OR(ORAT"O0 !C"0A 0AT"O0A2 +0"T%* O"2 !OR(ORAT"O0 A("O"2 2"/"T%* <26:33<:136 ;12:143:331 ;><:636:>34 <26:33<:136 ;12:143:331 ;><:636:>34 > > >

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231

(%TRO0A, TRA*"0. !OR(ORAT"O0 ,*0 BC* 6(%T!O7 "(2O/ ,(A :R%$$"0%R9 "0 B+,A22A - .%0OA J "TA29 TO9OTA T,+,CO !OR(ORAT"O0 ,ARA, ,?(?A? J "TA29 (%TRO.A2 ,?A? 2",BO0 J (ORT+.A2 BCARAT (%TRO2%+/ !OR(ORAT"O0 2T*?

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T)e report also note t)at (ri&e 4ater)ouse !ooper =as suppose to re&eive &onfirm ation t)at t)e sums reporte by ,O/O =ere a&tually eposite in t)e $e eral Reserve Ban# of 0e= 9or#: un er t)e arran-ement put in pla&e by t)e +0 ,e&urity !oun&il 6+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
%ner-y &onsultan&y OpenOil )as &riti&ise t)e nature of "raq5s pat) to=ar s %"T" &omplian&e: notin- t)at submissions from buyin- &ompanies =ere not al=ays si-ne off by t)e !%O or !$O as stipulate by %"T" rules: an t)at t)e !entral Ban# of "raq 6!B"7 =as unable to obtain statements for t)e *evelopment $un for "raqi oil revenues from t)e $e eral Reserve Ban# of 0e= 9or#: espite multiple requests over a t)ree-mont) perio ? T)erefore t)ere =as no &onfirmation t)at t)e money re&eive by t)e "raqi -overnment ultimately &orrespon e to t)e invoi&es sent out by ,O/O? T)e aut)or also &alle for a =i er s&ope of implementation before "raq =as -rante &ompliant status?1311 )I/I official &ebsite$ ===?eiti?orIra' )I/I official &ebsite$ ===?ieiti?or-?iq

Publish -hat Eou Pay P-EP!

(ublis) 4)at 9ou (ay 6(49(7 is a -lobal net=or# of &ivil so&iety or-anisations &allinfor oil: -as an minin- revenues to form t)e basis for evelopment an improve t)e lives of or inary &itiEens in resour&e-ri&) &ountries?
131> 5Re&on&iliation of &as) inflo=s from t)e petroleum in ustry in "raq in 2>><5: I)I/I: retrieve 11 Banuary 2>12? 1311 5"raq5s $irst Re&on&iliation ReportA %'e&utive ,ummary5: 01en0il: Banuary 2>12?

232

$rom a fe=: mostly +1-base -roups at t)e time of its laun&): as of early 2>13: (49( )a &reate a -lobal net=or# ma e up of more t)an 65> member or-anisations a&ross t)e =orl : in&lu in- )uman ri-)ts: evelopment: environmental an fait)-base or-anisations? "n more t)an 35 &ountries: net=or# members joine to &reate national &oalitions? /any also &ollaborate on a re-ional level?1312 A&&or in- to Bonas /ober- of t)e %'tra&tive "n ustries Transparen&y "nitiative 6%"T"7: (49( )as &reate a 5li-)t tou&) -lobal net=or#I? 1313 (49( )as often been seen to be t)e fla-bearer of a strate-y =)i&) says transparen&y efforts s)oul be le by le-al an re-ulatory requirement: an ma e obli-atory for &ompanies: in &ontrast to t)e approa&) a opte by t)e %"T": =)i&) is &onsensual?1314

6istory
T)e &all to 5publis) =)at you pay5 first appeare in a 1<<< report by .lobal 4itness on t)e oil an ban#in- in ustries in An-ola? On t)e ba&# of t)is: in Bune 2>>2 .lobal 4itness: alon- =it) fello= foun in- members !A$O*: Open ,o&iety "nstitute 6O,"7: O'fam .B: ,ave t)e !)il ren +1 an Transparen&y "nternational +1: laun&)e t)e =orl =i e (49( &ampai-n? T)e small foun in&oalition of 0.Os =as soon joine by ot)ers su&) as !at)oli& Relief ,ervi&es: Cuman Ri-)ts 4at&): (artners)ip Afri&a !ana a: (a' !)risti 0et)erlan s an ,e&ours !at)oliqueT!AR"TA, $ran&e: alon- =it) an in&reasin- number of -roups from evelopin&ountries?1312

Activities
(49( un erta#es publi& &ampai-ns an poli&y a vo&a&y to a&)ieve is&losure of information about e'tra&tive in ustry revenues an &ontra&ts?1312 T)e or-anisation5s &all for &ompanies to 5publis) =)at you pay5 an for -overnments to 5publis) =)at you earn5 form t)e basis of t)eir a&tivities? Co=ever t)e &oalition also &alls for transparen&y an a&&ountable mana-ement an e'pen iture of publi& fun s: as =ell as t)e publi& is&losure of e'tra&tive in ustry &ontra&ts an for li&ensin- pro&e ures to be &arrie out transparently an in line =it) best international pra&ti&e? 1312 (49(5s a&tivities &onsist primarily of a vo&a&y efforts an &apa&ity buil in- of &ivil so&iety -roups? T)e -ro=in- esire to monitor t)e payments: revenues an e'pen itures =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 re-imesN au itin- an a&&ountin- pro&essesN %"T" pro&esses: rules an poli&ies? (49( &ollaborates =it) lo&al an international a&tors to or-anise trainin- =or#s)ops: &onferen&es an seminars to )elp meet t)ese nee s?1312

1312 5About +s5: Publish "hat .ou Pay retrieve 15 Banuary 2>13? 1313 54it)out (49(: no %"T"5: )I/I Blog: 16 ,eptember 2>12? 1314 5%'tra&tive "n ustries Transparen&y "nitiative 6%"T"75: P".P: retrieve 15 Banuary 2>13?

233

0overnance
"n 2>>6 a ,trate-i& A visory .roup 6,A.7 =as establis)e to oversee strate-i& plannin-? T)e ,A. is &omprise of 12 representatives from a broa spe&trum of (49( members from aroun t)e =orl ? (49( )as an "nternational !oor inator 6"!7 base in 2on on as =ell as one full-time re-ional &oor inator for Afri&a: an &oor inators for all national affiliate &oalitions? T)ese &oor inators are supporte an overseen by mana-ement &ommittees? Representatives from t)e entire &oalition meet every t=o years for an international strate-y meetin-?1315 0fficial "ebsite$ ===?publis)=)atyoupay?or-

Revenue -atch Institute R-I!

R4" =as first laun&)e in 2>>2 as t)e Revenue 4at&) (ro-ramme of t)e Open ,o&iety "nstitute 6O,"7 an spun off into an in epen ent or-anisation in Bune 2>>6? A&&or into t)eir offi&ial site: t)e Revenue 4at&) "nstitute is t)e only or-anisation e i&ate e'&lusively to a ressin- t)e spe&ial problems of oil: -as an minin-- epen ent &ountries] L&ountries =)ere poverty: &onfli&t an &orruption too often &onver-eK? 1316

Activities
R4" &)ara&terises its =or# as mainly =it) &ivil so&iety: )elpin- t)em oversee e'tra&t ive in ustries a&ross t)e entire value &)ain: from =ell)ea to international mar#ets? T)e or-anisation also ma#es many small -rants to partner institutions in evelopin&ountries?1316 R4" =as a #ey foun in- member of t)e %"T" in 2>>2 an )as sat on its "nternational A visory Boar ? T)e institute efines its proje&ts as supportin- t)e %"T" pro&ess in many &ountries aroun t)e =orl ?1313 R4" 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&&or in- to a set of pre- etermine ini&ators?131; 0fficial "ebsite$ ===?revenue=at&)?or)I/I %ata Analysis$ ===? ata?revenue=at&)?or-Teiti
1315 5Co= 4e Are .overne 5: Publish "hat .ou Pay, retrieve 14 *e&ember 2>11? 1316 5About +s5: !evenue "atch Institute: retrieve 26 /ar&) 2>12? 1313 5R4" an t)e %"T"5: !evenue "atch Institute: retrieve 26 /ar&) 2>12? 131; 5%"T" ReportsA Results an Analysis5: !evenue "atch Institute: retrieve 26 /ar&) 2>12?

234

Revenue -atch Institute in Iraq

T)e Revenue 4at&) "nstitute 6R4"7 )as been a&tive in "raq sin&e s)ortly after t)e 2>>3 =ar? "n April 2>>6: R4" )el a seminar in Beirut -at)erin- over 5> spe&ialists an e'perts in t)e oil in ustry131<

Projects
"n 2>11: R4" supporte t)ree proje&ts in "raqN t=o to stren-t)en parliamentary oversi-)t of "raq5s oil an -as se&tor an one to raise a=areness of t)e %'tra&tive "n ustries Transparen&y "nitiative 6%"T"7 amon- &ivil so&iety or-anisations 6!,Os7 in "raq5s 1ur is) nort)?132>1321 R4" sponsore a +, G115:<5; -rant in 2>11 for t)e Arab Re-ion (arliamentarians A-ainst !orruption 6AR(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 mana-ement? T)e -rant involve AR(A! )ol in- 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&lu in- publi& poli&y issues: stan ar in ustry oversi-)t pra&ti&es: revenue mana-ement an transparen&y: &ontra&tin- basi&s: analyEin- oil an -as &ontra&ts an t)e %"T"? 132>

0lobal -itness
.lobal 4itness is a non-profit or-anisation )ea quartere in 2on on =)i&) es&ribes itself as e'posin- It)e &orrupt e'ploitation of natural resour&es an international tra e systems: to rive &ampai-ns t)at en impunity: resour&e-lin#e &onfli&t: an )uman ri-)ts an environmental abusesI? 1322 $oun e in 1<<3: .lobal 4itness )as been a #ey player in many of t)e major international me&)anisms an initiatives t)at )ave been establis)e to a ress t)ese issuesN in&lu in- t)e 1imberley (ro&ess -overnin- pro u&tion of iamon s an pre&ious stones: an t)e %'tra&tive "n ustries Transparen&y "nitiative 6%"T"7?

131< 5,eminar reportA /ana-in- "raq5s (etroleum5: !evenue "atch Institute: April 2>>6 132> 5,tren-t)enin- t)e Oversi-)t Role of "raqi (arliamentarians in t)e Oil an .as ,e&tors5: !evenue "atch Institute: retrieve 6 Banuary 2>12? 1321 5Raisin- %"T" A=areness Amon- !,Os in "raqMs 0ort)ern 1ur is) Area5: !evenue "atch Institute: retrieve 6 Banuary 2>12? 13225 .lobal 4itness: About +s5 lobal "itness: retrieve 24 O&tober 2>1>?

235

Investi5ations and results

.lobal 4itness &laims t)eir investi-ations )ave )a ire&t an major impa&ts: su&) as t)e "nternational /onetary $un 6"/$7 =it) ra=al from !ambo ia in 1<<6 over &orruption in t)e lo--in- in ustry: 1323 t)e imposition of timber san&tions on !)arles Taylor5s 2iberia in 2>>3:1324 an t)e pre&e ent-settin- arrest of timber baron .us 1ou=en)oven in t)e 0et)erlan s in 2>>5? 1325

Oil and 0as

.lobal 4itness starte pro u&in- reports on t)e oil an -as in ustry in 2>>4 =)en its report /ime for /rans1arency etaile abuse of natural resour&es in 1aEa#)stan: !on-o BraEEaville: An-ola: %quatorial .uinea an 0auru? 1326 Reports on Russia5s -as tra e =it) t)e &ountries of %astern %urope an t)e %+ follo=e ? 1323 "n ,eptember 2>>< .lobal 4itness pro u&e a report =)i&) provi e etails of t)e la&# of transparen&y in t)e =ay ,u an istributes oil revenues bet=een t)e -overnment in 1)artoum an t)e autonomous -overnment of ,out) ,u an? 132;

Conflict minerals
.lobal 4itness5 =or# on &onfli&t minerals fo&uses on t)e *emo&rati& Republi& of !on-o 6*R!7 =)ere fi-)tin- is fuelle by t)e tra e in valuable minerals su&) as &assiterite: &oltan: =olframite an -ol ? 132< "t =as also one of t)e first or-anisations to brin- t)e =orl 5s attention to t)e problems of &onfli&t iamon s in &ountries su&) as 2iberia: ,ierra 2eone: An-ola: t)e *R!: an !ote 5"voire? T)e or-anisation is an offi&ial observer of t)e 1imberley (ro&ess an &ontinues to &ampai-n for t)e stren-t)enin- an effe&tive implementation of its rules? Co=ever in *e&ember 2>11 .lobal 4itness ma e t)e e&ision to leave t)e pro&ess: ue to &on&erns t)at t)e me&)anism =as no lon-er provin- effe&tive in a&)ievin- its obje&tive?133> 0fficial &ebsite$ ===?-lobal=itness?or13235 Our Cistory5 lobal "itness: retrieve 24 O&tober 2>1>? 13245 2iberia brea&)es +0 ,an&tions - =)ilst its lo--in- in ustry fun s arms imports an R+$ rebels5 lobal "itness: 6 ,eptember 2>>1? 13255 Arms ealer an timber tra er .uus 1ou=en)oven foun -uilty of brea#in- a +0 arms embar-o5 lobal "itness: 3 Bune 2>>6? 13265 Time for Transparen&y5 lobal "itness: retrieve 26 O&tober 2>11? 13235 "t5s a -as - funny business in t)e Tur#men-+#raine oil tra e5 lobal "itness: retrieve 26 O&tober 2>11? 132;5 $uellin- mistrust - T)e nee for transparen&y in ,u an5s oil in ustry5 lobal "itness: retrieve 26 O&tober 2>11? 132<5 !onfli&t /inerals5 lobal "itness: retrieve 3> 0ovember 2>11? 133>5 4)y =e are leavin- t)e 1imberley (ro&ess - A messa-e from .lobal 4itness $oun in*ire&tor !)armian .oo&)5 lobal "itness: 5 *e&ember 2>11?

236

9ransparency International
Transparen&y "nternational 6T"7 is t)e =orl 5s lar-est &ivil so&iety or-anisation =or#in- on issues of &orruption an transparen&y? "t =as foun e in 1<<3 by (eter %i-en: a former re-ional ire&tor in Afri&a from t)e 4orl Ban#? %i-en e'plaine t)at in )is 25 years at t)e 4orl Ban#: ba proje&ts often -ot fun e be&ause t)ey )a t)e support of lea in- offi&ials: ba&#e by &orruption? T)e purpose of T" =as to put t)e issue of &orruption on t)e a-en a of t)e 4orl Ban#: lar-e onor &ountries: an t)e evelopment pro&ess?1331

*a;or Pro5rams
T)e proje&t for =)i&) T" is most #no=n is its !orruption (er&eptions "n e': 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 in e': T" also publis)es a ran-e of reports an position papers on vari ous 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 stu y by t)e &)arity ,ave t)e !)il ren into t)e same issue: but t)e met)o olo-y =as a apte ? 1334 0fficial "ebsite$ ===?transparen&y?or-

9ransparency of 0lobal Oil Companies

"n /ar&) 2>11: Transparen&y "nternational 6T"7 issue a report on t)e transparen&y of information provi e by 42 major oil an -as &ompanies aroun t)e =orl ? 1331

Findings
T)e report summarise its analysis into several main fin in-sA O Oil an -as &ompanies are in&reasin-ly a optin- an ma#in- publi&ly available anti-&orruption pro-rammes: but t)ere are many &ompanies t)at still o not publis) t)eir anti-&orruption &o es: poli&ies or measures?

1331 5(eter %i-en5: Africa Progress Panel: retrieve 15 Banuary 2>13? 1332 52>11 !orruption (er&eption "n e': /rans1arency International: retrieve 5 Banuary 2>12? 1333 5(oli&y Resear&): /rans1arency International: retrieve 5 Banuary 2>12? 1334 5(romotin- Revenue Transparen&yA 2>11 Report on Oil an .as !ompanies5: /rans1arency International: retrieve 25 O&tober 2>11?

233

O (ubli& is&losure of partners)ips an subsi iaries: in&lu in- t)eir &ountries of in&orporation: are #ey elements of or-anisational is&losure an t)e avera-e 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? O !ountry-level is&losure on international operations )as improve sin&e t)e 2>>; (RT report: an reportin- on pro u&tion levels )as be&ome a broa ly a&&epte stan ar 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 isa--re-ate &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 R 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 O *etaile anti-&orruption pro-rammes s)oul be publi&ly available O !ompanies s)oul un erta#e voluntary in epen ent assuran&e of anti-&orruption pro-rammes O !ompanies s)oul publis) etails of t)eir subsi iaries an fiel s of operations O Oil an -as &ompanies s)oul in&rease t)eir reportin- on a &ountry-by-&ountry basis O !ompanies s)oul join t)e %'tra&tive "n ustries Transparen&y "nitiative O !ompanies s)oul &reate an maintain up-to- ate &orporate =ebsites 9or )ational :il 1om3anies ():1s) O All 0O!s s)oul intro u&e internationally or -enerally a&&epte a&&ountin- stan ar s: as =ell as publis) in epen ently au ite a&&ounts O T)e relations)ips bet=een )ome -overnments an 0O!s s)oul be &lear an publi&ly is&lose 9or Public &odies O T)e %uropean +nion s)oul amen relevant le-islation to require %+-re-istere &ompanies to report on t)eir operations on a &ountry-by-&ountry basis O All -overnments t)at are )ome to oil an -as pro u&ers s)oul require &ompanies to report on t)eir operations on a &ountry-by-&ountry basis

23;

O ,to&# e'&)an-es s)oul enfor&e re-ulations provi in- for &ountry-level reportin9or the /nvestor 1ommunity O "nternational ratin- a-en&ies an ris# analysts s)oul in&lu e anti-&orruption measures in t)eir ris# evaluation mo els =)ere relevant O T)e "nternational A&&ountin- ,tan ar s Boar s)oul require &ompanies to report #ey information on a &ountry-by-&ountry basis O !orporate responsibility in i&es s)oul in&lu e reportin- on anti-&orruption pro-rammes: or-anisational is&losure an &ountry-level is&losure

Report on 0lobal Oil Companies in Iraq

!ompanies in t)e Transparen&y "nternational5s /ar&) 2>11 report 1335 =ere -ra e on t)ree &riteriaA t)eir implementation an promotion of soun anti-&orruption pro-rammes to prevent in ivi uals 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- subsi iariesN an t)eir publis)in- of pre&ise information about )o= mu&) revenue -oes to state bu -ets an )o= mu&) is retaine by &ompanies? A--re-atin- 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 a--re-ate mean: international oil &ompanies 6"O!s7 operatin- in "raq pla&e as follo=s? Above avera4e 3erformance trans3arency; O ,tatoilA 35V O B(A 64V O /arat)onA 63V O %niA 62V &elo# avera4e 3erformance trans3arency; O .aEpromA 23V O (etronasA 23V O !0OO!A 1<V O !0(!A 12V O ,)ellA 5;V O %''on/obilA 54V O Talisman %ner-yA 52V O TotalA 43V

,even &ompanies operatin- in "raq 61o-as: 1u=ait %ner-y !ompany: T(AO: Cunt: .enel %ner-y: *0O an Cerita-e7: =ere not fully &overe in t)e report?

13355 (romotin- Revenue Transparen&yA 2>11 Report on Oil an .as !ompanies5 /rans1arency International &ebsite Retrieve 25 O&tober 2>11?

23<

!irectories
Iraq Directory of Contacts
Belo= please fin a list of &onta&t etails for in ivi uals: or-anisations an institutions =)o may be &onta&te for furt)er etail on t)e issues &overe in t)e OpenOil "raq Oil .ui e: alon- =it) =ebsite listin-s for a&&ess to furt)er resour&es?

Civil %ociety and *edia Or5anisations

$I)I
4ebsiteA ===?eiti?or"%"T" 4ebsiteA ===?ieiti?or-?iq 2ddie 3ich *eputy Cea an Re-ional *ire&tor 6,out)ern an %astern Afri&a an t)e /i %"T" "nternational ,e&retariat %-mailA eri&)ceiti?orTelep)oneA [44 2>3 613 46<; Alaa 0ohie 2l-!een Cea of "raq %"T" ,e&retariat %-mailA al een53cmsn?&om Telep)oneA [<64 3;> 1<6 46>6 le %ast7

Global Witness
4ebsiteA ===?-lobal=itness?orBren an O5*onnell ,enior !ampai-ner %-mailA bo onnellc-lobal=itness?orTelep)oneA [44 2>3 4<2 5;<; T [443<3> 33< 3;3

24>

Ira6 Oil Report

4ebsiteA ===?iraqoilreport?&om 'en 4ando *ire&tor an "raq Bureau !)ief %-mailA benlan ociraqoilreport?&om Telep)oneA >3<>324446<

9ournalistic 7reedoms Observatory

4ebsiteA ===?jfoiraq?or5iad .halaf al-A6ili *ire&tor %-mailA Eya cjfoiraq?or'ashar Al-0andala,y (roje&t /ana-er %-mailA bas)arcjfoiraq?orTelep)oneA [<64 514;62 3<>1 T [<64 <6635> 3<>1

!ublish What :ou !ay

4ebsiteA ===?publis)=)atyoupay?orSophia #ardin) (ro-ramme Offi&er %-mailA s)ar in-cpublis)=)atyoupay?orTelep)oneA [44 2> 3>31 1316

Reporters Without &orders

4ebsiteA ===?rsf?orSoa7i) !ollet 0ort) Afri&a 8 /i le-%ast *es#

43 rue Divienne $ - 35>>2 (aris Telep)oneA [ 33 1 44 ;3 ;4 3;

241

$a' A [33 1 45 23 11 51 %-mail A moyen-orientcrsf?or- T mi le-eastcrsf?or-

Revenue Watch Institute

4ebsiteA ===?revenue=at&)?orPatricia .ara" /i le %ast an 0ort) Afri&a Re-ional !oor inator

%-mailA p#aramcrevenue=at&)?or-

)ransparency International
4ebsiteA ===?transparen&y?orStephanie T,i)) /i le %ast an 0ort) Afri&a *epartment Alt /oabit <6 *-1>55< Berlin

Telep)oneA [4< 3> 343;2>41; $a'A [4< 3> 343>3<12 %-mailA st=i--ctransparen&y?or-

Iraqi %tate +ntities

&aghdad Oil )raining Institute
===?boti?-ov?iq (O Bo'A 46>3;: Al-/ustansiria: Ba-) a TelA [<64-1-425>363 %-mailA boticboti?-ov?iq

Ira6 $%ploration ompany

===?iraqioe&?&om /inistry of oil Bo'A 56<4 Tel?A [<64 1 ;133>>> T [<64 1 ;133>14 %-mailA oe&ciraqioe&?&om

242

-irkuk Oil )raining Institute

===?#ir#u#oti?net

-urdistan Regional Government

===?#r-?or-T#r-

;aysan Oil ompany

===?mo&?oil?-ov?iq Republi& of "raq /issan (rovin&e Amara) !ity TelA [<644331343> T [<6443313432 %-mailA mo&doilcmo&iraq?&om

'orth Gas ompany

(?Bo' 6167 1ir#u# %-mailA -ascn-&?-ov?iq

'orth Oil ompany

===?no&?-ov?iq 1ir#u# TelA [<64 5> 25>>>> %-mailA infocno&?-ov?iq

'orth Refineries ompany

===?nr&?oil?-ov?iq "raq: Ba-) a : 1ara a: (?O bo'A 3263 TelA [<64 1-543->2<;

!etroleum and ontracts "icensing Directorate

===?p&l -iraq?&om /inistry of Oil (ort ,ai ,treet Ba-) a : "raq %-mailA &onta&tcp&l -iraq?&om

243

!etroleum Research and Development entre

===?pr &?-ov?iq

,outh Gas ompany

===?s-&iraq?&om Basra provin&e - 1)or Al-@ubair Al-As)ar mailbo'A 12>1 TelA >4>T642346 T >4>T642346 %-mailA s-&odoffi&e2>><cs-&iraq?&om

,outh Oil ompany

===?so&-basra)?&om Basra) %-mailA infocso&-basra)?&om

,outh Refineries ompany

===?sr&?-ov?iq Basra) TelA [<64-4>-613312 T [<64-4>-614313 %-mailA infocsr&?-ov?iq

,tate Oil ;arketing ompany

===?somooil?-ov?iq A2- Cay A2-/ou5tasim - *istri&t 324 - ,treet 13 A2-/ut)ana street : A ja&ent to A2Resafa fun fai (?O?Bo' 511; %-mailA 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

Al(hair +il Services Ira' 0ffice 52 Te&)nolo-y +niversity ,t: Ba-) a 1>>66 "RAF? Tel?A [<6433>461536; $a'?A [<62653113;; %-mailA a mincal#)airoil?&om "ebsiteA ===?al#)airoil?&om ServicesA lan an marine transportationN rillin- 8 s&outin-N trainin-? Al 8abas Group Baghdad 0ffice Al-/ansour: 14 Ramma )an ,t? Buil in- 0o? 4: /? 6><: @? 22: TelA [<64 1 542><54 /obileA [<64 3<>1<>62<1 $a'A [<64 1 541233< %mailA qabasoscya)oo?&om "ebsiteA ===?alqabas-roup?&om ServicesA infrastru&tureN =aste =aterN irri-ationN ma&)inery an materials? 'a(er #u)hes !egional 0ffice (?O? Bo' 43513 *)afir To=er: 4t) $loor !orner of 0aj a T %le&tra ,treet Abu *)abi TelA [<31?2?41><1>> $a'A [<31?2?41><111 "ebsiteA ===?ba#er)u-)es?&om ServicesA reservoir evelopmentN rillin-N inte-rate operationsN evaluationN &ompletionsN pro u&tionN pressure pumpin-N tubular servi&esN pro&ess an pipeline servi&esN &)emi&alsN e u&ation servi&es? 'asrah 2ast Co"pany Ira' 0ffice (?O? Bo'A 2141: Basra): "raq TelA [<64 4> 64>6<1 $a'A [<64 4> 623<1< /obileA [<64 3;> 13<>1;> 6At)eer7 [<64 3<> 2351;31 6"raqna7 [<31 5> 5;6<333 6"nternational7 %-mailA infocbasra)east?&om "ebsiteA ===?basra)east?&om ServicesA refineriesN pumpin- an re&eivin- stationsN -as pro u&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 - 1arra a - 1a)ramana ,q? 245

TelA [<64-33>-333<543 ServicesA reservoirsN pipelines? Crescent Petroleu" Country 0ffice TelA [ <64 617 31< 4321 $a'A [ <64 617 31; 3243 %-mailA &p&i-iraqc&res&ent?ae "ebsiteA ===?&res&ent?ae ServicesA oil an -as e'plorationN pro u&tionN transport? #iTech Fluid Syste"s Country 0ffice 245T5T543 ,)mony ,treet An#a=a: %rbil: 1ur istan: "raq ()oneA 4>3?543?2<>6 $a'AA 4>3?543?312< %mailA mo&? iulf)&eti)cofni "ebsiteA ===?)ite&)flui ?&om ServicesA rillin- flui systemsN =or#over an &ompletionsN flui a #ua,ei Country 0ffice Couse 0o?24: 2ane 0O?23: ,)oris) Fuater 1>1: ,ulaimaniya): "raq TelA >><64-1-33445<3 $a'A >><64-1-33445<3 "ebsiteA ===?)ua=ei?&om ServicesA "!T ,olutions? IAG International Ar"oured Group !egional 0ffice (?O? Bo' 5>>6> 1)or 1)=air "n ustrial (ar# RA1 $ree Tra e @one Ras Al 1)aima): +nite Arab %mirates TelA [ <31 3 266 >>2; $a'A [ <31 3 266 ;<6< %-mailA infocinterarmore ?&om "ebsiteA ===?interarmore ?&om ServicesA se&urity servi&esN ris# mana-ement &onsultan&yN se&urity trainin-N mine a&tion? 9a,ar Al .halee6 Shippin) Country 0ffice (O Bo' 13332 Basra): "raq Tel [<64 3;> 1>23<;; T [<64 3;1 235<556 %-mailA basracja=aral#)aleej?&om "ebsiteA ===?ja=aral#)aleej?&om ServicesA s)ippin- servi&es? 0ott 0ac!onald itives?

246

!egional 0ffice (?O? Bo' 43><4: Al Cas)mi To=er: Airport Roa Abu *)abi - Al Cas)mi TelA [<31 6>72 445 343> $a'A [<31 6>72 445 34<> "ebsiteA ===?mottma&?&om ServicesA mana-ement: en-ineerin- an +ilServ !egional 0ffice 15t) floor: One Business Bay Buil in-: (?O?Bo' 11364;: *ubai "ebsiteA ===?oilserv?&om ServicesA rillin-: &ompletion an pro u&tion servi&es? +live Group Country 0ffice TelA [<31 6>74 36> >;31 %-mailA iraqcolive-roup?&om "ebsiteA ===?olive-roup?&om ServicesA se&urity: ris# miti-ation an spe&ialist support servi&es? Petronasr Ira' 0ffice 0ear 0e= !ity: 6> /: %rbil TelA [<64 35> 4;3 ;5<3 T [<64 33> 1<3 4444 ,atellite p)oneA [ ;;216 666> <<66 %mail A infocpetronasr?&om "ebsiteA ===?petronasr?&om ServicesA po=er stationsN refineriesN pipelinesN infrastru&ture? Schlu"ber)er !egional 0ffice ,&)lumber-er Te&)ni&al ,ervi&es: "n&? *ubai 4orl Tra e !enter: <t) $loor (O Bo' <261 *ubai: +A% Telep)oneA [<31 4 3>6 3333 $a'A [<31 4 3>6 31<< "ebsiteA ===?slb?&om ServicesA seismi& servi&esN rillin-N &)ara&teriEationN &ompletionsN pro u&tionN =ell intervention? Sha""ery Ira' 0ffice ,aba) Al-,)ammery 8 (artners !o? 5>3>> Al-/aMamoon: Al-/ansoor AlAmeerat ,t?: *istri&t 0o? 6><: ,t? 0o? 1: Couse 0o? 21 Ba-) a : "RAF TelA [<64 1 54123;3 T [<64 1 5413516 $a'A [<64 1 1 541;155 evelopment &onsultan&y?

243

%-/ailA sap&odiraqcs)ammery?&om "ebsiteA ===?s)ammery?&om ServicesA e'ploration an rillin- suppliesN te&)nolo-y an &ommuni&ationsN me i&al suppliesN &)emi&alsN automobile equipment? S.A Baghdad 0ffice B"A( (ost Offi&e Bo' 23>>< Ba-) a "nternational Airport Ba-) a : "raq TelA [<64 3<>1 1>3 556 TelA [<64 3<>1 <>< ;1< %mailA ba-) a cs#a-arabia?&om Basrah 0ffice ,1A !omple' Basra) "nternational Airport Basra): "raq TelA [<64 3<>1 <>< ;31 Do"(A [1 3>3 633 3<33 %mailA basra)cs#a-arabia?&om )rbil 0ffice ,1A !omple' %rbil "nternational Airport %rbil T 1ur istan: "raq TelA [<64 33>3 66; <1< TelA [<64 35> 445 6415 TelA [<31 5> <1<5431 %mailA infocs#a-#uristan?&om "ebsiteA ===?s#a-arabia?&om ServicesA aviation ,ervi&esN -roun lo-isti&sN life supportN fuel supply &)ain mana-ementN &amp &onstru&tionN se&urity servi&es? Technolo)y Partners Country 0ffice Al /ansoor TelA [<64 3<>1 <463;1 TelA [<64 3<>1 <4366> $a'A [<314 3<> ;>3> "ebsiteA ===?tpfE?&om ServicesA "!T infrastru&ture an servi&es inte-ration? TU+SSC+ Ira' 0ffice Al-/ansur: Ba-) a : "raq TelA [<64-1-5411424 $a'A [<64-1-54154<; "ebsiteA ===?tuoss&o?&om ServicesA instrumentation an &ontrol systemsN po=er an -enerationN =ater treatmentN me&)ani&alN en-ineerin-N safety an environmentN lab equipment? :eatherford International Country 0ffice Ti-ris ,t? Be)in Amara 1in er-arten Amara 6/issan7 "raq Tel?A [<13 2;4 <231 $a'?A [<31-4-44< 52> "ebsiteA ===?=eat)erfor ?&om ServicesA rillin-N evaluationN &ompletionN pro u&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>><? 1336 'P +il International 4i"ited 2> !ana a ,quare !anary 4)arf 2on on: %14 50B +nite 1in- om Telep)oneA [44 2> 34<6 4>>> ConocoPhillips International Tradin) PT2 1 Temase# Avenue: /illenia To=er: ,in-apore >3<1<2 2;;on0obil Sales and Supply 44C %''on/obil ,ales 8 ,upply 22! One Al)ambra (laEa ,uite <>> !oral .ables: $lori a $233134: +,A Telep)one 6outsi e +,A7A [1 3>5 45< 635; Indian +il Corporation 4i"ited 36: "n ian Oil !entre: B)ulab)ai *esai Roa : !umballa Cill: /umbai: /a)aras)tra 4>>>26: "n ia Telep)oneA [<1 22 2554 163< .och Supply and Tradin) 4$P $ountain Couse: 6t) $loor: 13> $en&)ur&) ,treet: 2on on %!3/ 5*B: +nite 1in- om Telep)oneA [44 6>7 2>3 64; 63>> Shell International 2astern Tradin) Co"pany 4i"ited (SI2TC+ ,)ell Couse: +% ,quare: ;3 !lemen&eau Ave: 23<<2>: ,in-apore Sinoche" International +il (4ondon Co$ 4td 4estminster To=er 3 Albert %mban#ment 2on on ,%1 3,( e S. 2ner)y 2urope 4i"ited 3r $loor 11-12 Canover ,treet: 2on on 41, 19F +nite 1in- om Telep)oneA [44-6>72>-34<5-><56 Total International 4i"ited Tour !oupole - 2a *afense 6 2 pla&e Bean /illier <2>3; - (AR", 2A *%$%0,% !%*%Z $ran&e
13365 Re&on&iliation of &as) inflo=s from t)e petroleum in ustry in "raq in 2>><5 I)I/I Retrieve 11 Banuary 2>12?

24<

1alero Supply and 0ar(etin) Co"pany One Dalero 4ay

Re5ional offices of IOCs operatin5 in Iraq

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