04 September 2007 17:09 [Source: ICIS news]
By Nigel Davis
LONDON (ICIS news)--For oil and gas and petrochemical players ?xml:namespace>
As the security situation teeters on the brink the prospects of constructing and operating new oil wells, gas extraction and petrochemicals plants appears daunting to say the least.
But the strife-riven country has the potential to be one of the top four global oil producers and a major petrochemicals player.
Even last month it reportedly pumped more than 2m barrels of crude a day which, according to Reuters, made it the
A daily crude oil output of 2.5m barrels a day seems achievable and possibly 4m bbl/day attainable. The lower level could support close to two world-scale ethane crackers or the production of 1.5m tonnes of ethylene. The big question, however, has to be at what cost?
Reports this year have suggested that Iraqi planners are looking to re-vitalise the country’s ailing petrochemicals complex in
A long-considered law to ban the flaring of associated gas would give particular impetus to petrochemicals.
Speaking to reporters this week he suggested that regional petrochemical industry development means that delay only makes possible Iraqi projects less attractive.
Talks about possible
Al-Hariri said late last month that talks about a potential $2bn
Not surprisingly the companies are not keen to discuss these talks widely.
For the oil and gas majors, however,
New oil production will be promoted under production sharing agreements giving companies more direct access to
The step from oil to chemicals is desirable to help lift an economy based on oil and agriculture. But the sector’s development depends on the construction of the infrastructure and facilities to gather and process associated gas.
The industry minister suggested that a 1m tonne/year ethylene and derivatives complex in the centre or north of the country could cost $2bn which seems cheap by today’s standards of sky-rocketing Middle East project costs. He also said security costs could account for as much as 40% of the total.
A northern complex appears most feasible as a second project given the oil and refining infrastructure around
A project in the centre of the country looks less likely given that development of the gas gathering and processing infrastructure to support petrochemicals would cost billions of dollars.
For the oil and gas majors seeking new reserves and frontiers, however,
Talk of world-scale petrochemical projects in
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