Oil production has lost steam in Iraq and is likely to touch a mere 5 mmbd by 2020, marking a drop of more than half compared to the previous target of 12 mmbd set in 2009, according to a report by GlobaData.
Budgetary constraints amidst prolonged low prices, political disputes and ongoing conflict with ISIS have hit Iraqi government’s ability to maintain the capital investment to meet the production target, according to the report, ‘Oil Growth Story in Iraq Loses Steam’.
The oil rich country had originally set a target of 12 mmbd in 2009 and later scaled down to 9 mmbd in 2013. In 2015, the target was revised further downward to 6 mmbd by 2020.
Oil field developers across the country are facing budget cuts. Kurdistan region, however, is an exception, where the oil production has risen from 313,000 bd in 2014 to 577,000 bd in 2015.
A number of key fields have completed major works during 2015, including installation of central processing facility at Taq Taq field. CPF field is expected to come online in the second quarter of 2016.
The report said that the fields including the Garmian, Atrush and Kurdamir will contribute to the production, but at a slower pace.