Iraq underutilizes vast oil reserves: Former oil minister

ERBIL, Kurdistan Region - Iraq sits atop vast oil reserves but fails to fully exploit them, a former oil minister said Wednesday, criticizing the country’s energy policies and OPEC-imposed restrictions.

“We have 520 geological oil patches in the country, but so far the utilized patches are 73 only," Abduljabbar al-Luaibi said during a panel at the Iraq Development Platform conference in Baghdad.

“Iraq as you know… is situated on lakes of oil, but it does not make a difference,” he emphasized.

Iraq, OPEC’s second-largest oil producer after Saudi Arabia, has been cutting crude exports to comply with its OPEC+ quota. In December, the country sold 3.259 million barrels per day, reaching its lowest annual average sales since 2015, according to Iraq Oil Report.

Luaibi said the restrictions imposed by OPEC could be addressed, adding, “Considering that the country is our country and we are free to do whatever we want with it.”

He said that while renewable energy has gained importance, “the oil situation has remained central to energy priorities.”

“This industry requires a total revision, a revision from the government, a revision from the parliament, and a revision from experts… to manage this big dossier… you need planning,” the former minister said.

He added that the oil industry's bureaucratic and administrative landscape has remained “in the same situation” for decades.

Iraq’s oil ministry comprises 16 companies. The North Oil Company oversees four fields in the oil-rich Kirkuk province, which is set to be redeveloped by British energy giant BP.

The deal was signed earlier this month during a visit to London by a delegation led by Iraqi Prime Minister Mohammed Shia’ al-Sudani.

On Tuesday, Zaid Elyaseri, head of BP in Iraq, said the company might finalize the deal with Baghdad at the start of February, adding that the project could “stimulate the local economy by working with local companies and providing job opportunities.”

He added that BP is “committed to working with the existing cadres in the North Oil Company.”

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