Iraqi Oil Exports Have 'Nosedived'

Posted by Saadoun al-Jaberi, Azzaman at 7:35 AM on November 21, 2008.

Iraq's oil exports are decreasing by nearly 100,000 barrels a day every month, said former Oil Minister Ibrahim Bahar al-Uloom.

Uloom said the drastic decline started last May and has slashed exports to 1.65 million barrels a day from about 2 million.

"Iraqi (oil) exports have nosedived 25 per cent since the beginning of 2008," Uloom said in an interview.

"This represents a big challenge to the government," he said.

He said he could not see how the government would be able to meet budgetary expenses for 2009.

"2009 budget has been based on the assumption of exporting two million barrels a day and an estimated price of not less than $80 for a barrel," he said.

Oil prices have lost nearly two thirds of their value on international markets in the past few months and are now hovering at $55 a barrel.

Iraq needs to dig new wells, restructure its National Oil Company, supply it with advanced machinery and equipment and revamp its pipeline network and terminals in order increase output, he said.

Tagged as: iraq, iraqi oil, ibrahim bahar al-uloom