– Strategic Proposition
Iraq has potentially the world’s second largest oil reserves and is currently the world’s third largest oil exporter.
The country is targeted to spend over US$30 billion annually in oil and gas infrastructure to increase production from the current three million barrels a day (b/d) to nine million b/d by 2020.
The BIOGH Public Private Partnership with the Government will assist in enabling the latter’s ambition to provide the appropriate facilities within a Free Trade Zone for international companies to facilitate and optimise this significant increase in production capability.
The Free Zone’s facilities are in close proximity to the four super giant oilfields:
- Rumaila – 85km away. Operated by BP
- West Qurna – 110km away. Phase I operated by
Exxon Mobil/Shell and Phase II by Lukoil
- Zubair – 35km away. Operated by ENI
- Majnoon – 125km away. Operated by Shell
These four oilfields currently contribute two thirds of Iraq’s oil production (it is currently producing 3 million barrels per day) and is forecast to increase production as follows:Source: IEA Oct 2012
To achieve this level of production, it is estimated that between USD$400bn and USD$600bn of investment within the oil & gas sector will be required. A significant part of this spend will be needed between 2015 and 2020 (which equates to an annual spend of more than USD$30bn in that period):
CUMULATIVE INVESTMENT 2011-2035 (RIGHT AXIS)
-- High Case
– Central scenario
The sheer scale of logistical support and supply chain management would mean a very high demand for space in a secure environment that will allow efficient movement of goods and services. As a result, BIOGH’s project will be highly sought after, as at present there is no alternative supply of this scale becoming available to the market in the next few years.