International Energy Agency’s (IEA) Chief Economist Fatih Birol stated that Iraq is all set to become the strategic energy partner of India, having huge prospects as a major oil producer of the world. He also added that Iraq’s role in global market is blooming and soon the country will become one of the major players of the world in the energy producing sector.
Presently, Iraq exports its 50% oil to different Asian nations. By 2020, a major change will thrive as this percentage is going to increase up to 80%. India and China, being two major oil importers in Asia, will have the largest share in Iraqi oil import to Asia. According to the report and observation of IEA, Iraq is now producing three million barrels of crude oil. Soon, from 2035, the count will go higher and 5 million barrels are anticipated by the experts. Few months ago Iraq has tasted some success in this by becoming India’s second largest oil supplier, replacing Iran.
Iraq is keen to increase its oil production from 3 million barrel to 8.3 million barrels within 2035. According to Birol, by 2020, China will import 2 million barrels per day and India will import 1.5 million barrels per day from Iraq. After 20 years, Iraq will reach the GDP level of Saudi Arabia of today.
On the matter of Iraq’s geo-political issue with Iran, He said that he is quite confident about the fact that Iraq will be able to sustain easily due to its vast lands and low cost oil productivity. Soon, we will see Iraq as the second largest oil producer of the world. Birol also stated that if Iraq can sustain to development then soon the flush of oil from Iraq will bring down prices.
Birol is anticipating that natural gas of Iraq is also going to be a major factor for the world. Iraq has high chances of high development through exporting natural gas to different countries of the world. Indian companies have good potential to invest into not only Iraqi oil and gas, but also business sectors like petrochemicals, IT, engineering and infrastructure.
Overseas investment arm of ONGC is right busy in a contract renegotiation with Iraq.
Hindu Business Line