URGENT: Iraq’s total oil sector’s losses, due to bad administration since 2003 exceeds US$493 billions (b).

BAGHDAD / IraqiNews.com: The total losses of the Iraqi economy in the oil sector have reached about US$493 billions (b), during the period from 2003 and 2011, due to the hampering or postponement of projects, bad administration and planning, an Expert in Energy Affairs said on Tuesday.   “Iraq’s oil sector’s losses during the period from 2003 to 2011 has reached about US$439 billions (b), all due to bad administration, planning and hampering or postponement of projects, along with the loss of 8.5 million possible employment chances that could have raised the annual income-per-capita from US$3,500 TO US$18,000 per annum,” Expert Nizar Haider of the Research Section in the US DTI Company for Energy Affairs said in a study he prepared, copy of which was received by IraqiNews.com news agency.   Haider said that Iraq ’s current State budget “is prepared to receive from US$20 billions to 30 billions (b), through investments by the Iraqi government.”   “The Iraqi economy, in its current position, is prepared to receive US$20 billions to 30 billions (b), through government investments, apart from the production investments, especially the export ones, that have no limits and has no relationship with the size of economy, as much as its relationship with country’s current atmosphere, supporting profits and the reduction of the production costs,” Haider said.   He said that “five years have been wasted before (Prime Minister) Nouri al-Maliki’s government had reached the necessary step to achieve the necessary step to move the wheel of oil production to register an average production between 3.1 million barrels per day (bpd) in 2011 to 3.7 million bpd by 2012.”   Haider has estimated Iraq ’s financial losses, caused by the delay of oil production projects by “US$227 billions (b) between 2006-2011, and US#538 billions (b) between 2012- 2016, in the event of keeping the oil prices on an average of 80 dollars per barrel.”   He pointed out that “Iraq’s economic losses, caused by the delay of natural gas projects is estimated to be US$52.9 billions (b) between 2006 and 2011, and US$147 billions (b) between 2012 and 2016.”   Expert Haider estimated Iraq ’s total losses, caused by the waste of chances and postponement of projects had reached to US$5.3 trillions (t), making them close to Iraq ’s economic losses due to wars it was involved in during Saddam Hussein’s regime, that reached US$7.8 trillions (t).   The expert, at the end of his study, “to follow a 10-year strategy, through which a government’s commissioning budget be defined, in an average revenues of 1.5 million bpd and for US$70 dollars per barrel.   Expert Haider in conclusion suggests “in the event of the price of a barrel of oil exceeds 70 dollars and if Iraq’s oil exports exceeds the 1.5 million bpd, its total revenues, that would be considered exceeding the State’s budget the 1.5 million bpd, the expected revenues would be used in investment projects and the building of an infrastructure and service institutions, apart from the sectors of industry, agriculture and tourism.”   Iraq ’s Oil Ministry had announced on Oct. 4, 2010, that the Iraq underground oil’s reserve exceeded 505 billion (b) barrels, whilst the constant reserve, ready for extraction reached 134 billion (b).   “There are reports that had preceded that announcement, pointing out that Iraq’s reserve is estimated between 240-300 billion (b), thing that makes Iraq jump to the 1 st rank in the oil reserve, thing that makes it exceed Saudi Arabia, which occupies the 1 st rank, being 264.5 billion (b) barrels, Venezuela – the 2 nd with 211.1 billion (b) barrels and Iran – the 3 rd rank with 137 billion (b) barrels, according to OPEC’s figures.   SKH (FT)   1197