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Iraqi oil output plans overambitious - executives

 

* Iraq's stated output goals "improbable", executives say

* Security, instability, poor infrastructure hamper plans

 

By Humeyra Pamuk

LONDON, Oct 13 (Reuters) - Problems with security, political instability and poor infrastructure mean plans by Iraq to expand its crude oil production dramatically over the next few years are overambitious, oil executives told an industry conference.

Iraq is sitting on some of the biggest proven oil reservoirs in the world, which Iraqi officials said last week were as high as 143 billion barrels, giving it the world's fourth-largest reserves after Saudi Arabia, Venezuela and . [ID:nLDE69100U]

But it will take many years for the country to turn those vast resources into extra oil production.

Iraqi output is now around 2.4 million barrels per day (bpd) and few oil executives see big additions to that production over the next few years -- far short of a stated goal of 4 million bpd within three years and 12 million in seven years. [OPEC/O]

"Big capacity projections are improbable," said Peter Wells, of Neftex Petroleum Consultants. "Projections for investment in drilling are well in excess of capability in the medium term and (a) rapid-build up is not needed."

Wells said Iraq was a unique oil prospect, but a rapid increase in output would be very difficult to accomplish.

"There's nothing like Iraq left in the world," Wells said. "It is the single most important new supply increment."

Iraqi Deputy Oil Minister Abdul Kareem Luaibi told Reuters last month Iraq could raise oil output to 4 million bpd by 2013 and it has signed contracts with foreign companies to increase capacity to 12 million bpd within seven years, which would make it a close rival to . [ID:nLDE68E1MR]

 

SHORTAGES

The extra oil will flow from the nine oilfields Iraq auctioned last year, including Rumaila, Zubair, West Qurna, and Majnoon. They are being developed by oil majors such as Britain's BP (), 's ENI (), Exxon Mobil (), Russia's Lukoil () and Royal Dutch Shell ().

But Iraq lacks the cash and political leadership required to finance and manage such an output increase, oil executives say.

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