Iraq is currently the 4th largest oil producer in the world, with current production capacity of approximately 5 mb/d, and proven crude oil reserves of 148.8 billion barrels. Iraq is one of the five Founder Members of OPEC, which was created at the Baghdad Conference in 1960.
Historically, it was at the Baba Dome in Kirkuk field that the country’s first productive oil well was drilled in 1927. By the mid 1960’s Iraq’s oil production stood at around 1.3mb/d and by 1979 reached a peak of 3.5 mb/d. In 1979 Iraq had begun implementing a five-year plan to increase production to 5 mb/d, by developing its southern super-giant oil fields (Majnoon, West Qurna, Halfaya, and Nahr Umr). The plan also included the expansion of midstream infrastructure and export facilities. Unfortunately, due to the consequences of the Iran-Iraq war, the first and second Gulf Wars, crippling international sanctions, and the post 2003 environment, these targets would not be realised until 2019.
In 2009 Iraq opened its doors to international companies in what was to the first of five licensing rounds. The first round successfully attracted some of the largest oil and gas majors and included some of the country’s largest southern fields. Namely, Rumaila, Zubair, and West Qurna. Subsequent rounds included other super-giant oil fields, gas fields, border fields and exploration blocks, as illustrated in the tables below.
IOC’s in southern Iraq added approximately 1.8 mb/d between 2010 and 2017 bringing total Iraq production to over 4.5 mb/d. Between 2014 to 2016, Iraq was one of the largest contributors to incremental production growth in the global oil market, adding approximately 2 mb/d between 2009 and 2016.
Future Plans
The Ministry of Oil has an optimistic target production level of 6.5 mb/d by 2022. This is largely dependent on achieving higher water injection rates, and midstream and export capacity upgrades and expansions. This is particularly relevant as the country’s production profile is set to get heavier as more oil comes from the Mishrif horizon.
Iraq has recently reached preliminary terms on the South Integrated Project (SIP) with ExxonMobil and PetroChina that will be crucial for the country to reach its latest production target of 8 million b/d in the next five to seven years. The SIP, leverages the development of Nahr Bin Umr and Ratawi oil fields, to pay for the multi-field water injection project to boost much needed reservoir pressure, gas plants at the two fields, and repairs and upgrades to storage, pipelines and export infrastructure.
Service Contracts Licensing Rounds
Round One Results (2009)
| Project | Production in 2009 (’000 b/d) |
Plateau Production Target (’000 b/d) |
Remuneration fee bid (US$/bl) |
Remuneration fee agreed (US$/barrel) |
Signature bonus (US$ mn) |
Contractor |
| Akkas (gas) |
200 | No award | ||||
| Bai Hassan | 175 | 26.7 | 300 | No award | ||
| Kirkuk | 360 | 7.89 | 400 | No award | ||
| Mansuriyah (gas) |
No award | |||||
| Missan Group |
87 | 450 | 21.4 | 2.30 | 300 | |
| Rumaila | 1,100 | 2,850 | 3.99–4.80 | 2.00 | 500 | BP (38%), CNPC (37%), SOMO (25%) |
| West Qurna-1 |
250 | 2,325 | 2.60–19.30 | 1.90 | 100 | ExxonMobil (60%), Shell (15%), North Oil (25%) |
| Zubair | 190 | 1,200 | 4.09–9.90 | 2.00 | 100 | Eni (32.81%), Occidental (23.44%), KOGAS (18.75%), Missan Oil (25%) |
Round Two Results (2009)
| Project | First Commercial Production (’000 b/d) |
Plateau Production Target (’000 b/d) |
Renumeration fee bid (US$/bl) |
Signature bonus (US$ mn) |
Contractor |
| Badra | 15 | 170 | 5.5 | 100 | Gazprom (30%), KOGAS (22.5%), Petronas (15%), TPAO (7.5%), Midlands Oil (25%) |
| Diyala | No award | ||||
| East Baghdad |
No award | ||||
| Euphrates | No award | ||||
| Gharraf | 35 | 230 | 1.49 | 100 | Petronas (45%), JAPEX (30%), North Oil (25%) |
| Halfaya | 70 | 535 | 1.4 | 150 | PetroChina (37.5%), Petronas (18.75%), Total (18.75%), South Oil (25%) |
| Majnoon | 175 | 1,800 | 1.39 | 150 | Shell (45%), Petronas (30%), Missan Oil (25%) |
| Najmah | 20 | 110 | 6.0 | 100 | Sonangol (75%), Nineveh Oil (25%) |
| Qayarrah | 30 | 120 | 5.0 | 100 | Sonangol (75%), Nineveh Oil (25%) |
| West Qurna-2 |
120 | 1,800 | 1.15 | 100 | Lukoil (56.25%), Statoil (18.25%), Oil Exploration Company (25%) |
Round Three Results – Gas (2010)
| Project | Plateau Production Target (mmcfd) |
Plateau Production Target (mmcfd) |
Renumeration fee bid (US$/boe) |
Contractor |
| Akkas | 400 | 100 | 5.50 | KOGAS (37.5%), KMG (37.5%), Midland Oil (25%) |
| Mansuriyah | 300 | 75 | 7.00 | TPAO (37.5%), Kuwait Energy (22.5%), KOGAS (15%), Midland Oil (25%) |
| Siba | 100 | 25 | 7.50 | Kuwait Energy (45%), TPAO (30%), Missan Oil (25%) |
Round Four Results (2012)
| Block | Acreage | Remuneration fee (US$/boe) |
Signature bonus (US$ mn) |
Contractor |
| 1 | 7,300 | 15 | No award | |
| 2 | 8,000 | 25 | No award | |
| 3 | 7,000 | 20 | No award | |
| 4 | 7,000 | 20 | No award | |
| 5 | 7,000 | 20 | No award | |
| 6 | 9,000 | 20 | No award | |
| 7 | 6,000 | 20 | No award | |
| 8 | 6,000 | 5.38 | 15 | Pakistan Petroleum (100%) |
| 9 | 900 | 6.24 | 25 | Kuwait Energy (40%), TPAO (30%), Dragon Oil (30%) |
| 10 | 5,500 | 5.99 | 25 | Lukoil (60%), Inpex Corp (40%) |
| 11 | 8,000 | 15 | No award | |
| 12 | 8,000 | 5.00 | 15 | Bashneft (70%), Premier Oil (30%) |
Round Five Results (2018)
| Awarded | No Bid |
| Naft Khana (GeoJade) | Shihabi |
| Huwaiza (GeoJade) | Zurbatiya |
| Sindbad (UEG) | Jebel Sanam |
| Khider Al-Mai (Crescent Group) | Fao |
| Gilabat-Qumar (Crescent Group) | Arabian Gulf |
| Injana Khashm Al Ahmar (Crescent Group) |