This document discusses Iraq's oil reserves, production, and administration. It provides statistics on Iraq's oil reserves and fields. It also compares different drafts of Iraq's oil law and discusses the Kurdistan Regional Government's oil law. The document analyzes objectives to increase Iraq's oil production and exports. It notes challenges around Iraq passing a national oil law and contrasts contracts in the Kurdistan region versus those administered by Baghdad.

1. Iraq Oil
Lawwwwww
2011

2. 25 mv
61
mv
29 mv+?mv
Oil Fields and Distribution
Reservs
• Recoverable Reserve (2P): 150 billion bbl (
World’s % 9)
• Recoverable Natural gas (2P): 3.1 Tcf ( World’s
% 2)
• 1/3 of the country explored
• 1/3 of the country partially explored,
• 1/3 of the country unexplored (Western Desert)
Production
• 71 fields discovered;
o 22 fields developed and producing
o 31 undeveloped fields are located in the
North
o 18 undeveloped fields are located in the
South
• In December 1979 the production was 3.7 million
bbl/d
• During 2004 production was 2 million bbl/d
• Within 2012 the producion was 3.115 million
bbl/d
•To increase production in Rumeli and Kerkük to 1
million bbl/d 1.9 billion $ and 0.95 billion $
investment is needed in order
•To increase the production of the other regions and
new fields to 1 million bbl/d 3-6 billion $ of
investment is needed
•Iraq planned 12 million bbl/d and 16 billion m3/year
natural gas export ; and this needs more than 40ZEY, 2011

3. Administration of Oil and Natural Gas
Resources_Comparision Table
4 July 2007 17 August 2011 25 August 2011
House of
Representative + + +
Council of Ministers + + +
Federal Council of
Oil and Gas (FCOG) + + +
Ministry of Oil + + +
Representative from
each region - + -
Representative from
each Producing
Governorates
- + -
Iraqi National Oil
Company + - +
Regional Body + - +
ZEY, 2011

4. Iraq Draft Oil Law_Compasision Table
4 July 2007 17 August 2011 25 August 2011
MoO + + +
KRG defined + - +
Exploration + + -
Iraqi Company + + +
Bureau + + +
Producing
Governorate
+ + +
Oil and Gas is
For all the people in Iraq in all
regions and governorates
To achieve the highest benefit to Iraqi
people
For all the people in Iraq in
all regions and governorates
Management
Federal
Government
Coordination and partnership between
Federal Government, Regions and
Producing Governorates
Federal
Government
FCOG + + +
INOC and OMC + + +
Existing E and
P contracts
Review all existing E and P
contracts in force and make
necessary changes and
submit to FCOG
Review all existing contracts by a
committee comprising MoO, MKRG and
Chairman of OENR, committee of HoR.
Review all existing E and P
contracts in force and make
necessary changes and
submit to FCOG
Importance
from KRG
point
KRG becomes a legal
regional administration.
KRG can only take place in the
contract committee but can not be
legal regional administration.
KRG becomes a legal
regional administration.
ZEY, 2011

5. FCOG _Federal Council of Oil and Gas
4 July 2007 17 August 2011 25 August 2011
Prime Minister Chairman of Council Deputy Prime Minister
Minister of Oil Vice Chairman Minister of Oil
Minister of Finance Minister of Oil Minister of Finance
Minister of Planning Minister of Finance Minister of Planning
Director of Central Bank
Minister of Planning and Development
Cooperation
Governor of Central Bank
Ministery representative
from Region
3 independent experts
Ministery level representative from
the Region
Representative from
each Producing
Governorates not
included in a Region
Representative from each region and
governorates
Representative from each Producing
Governorates not included in a
Region
Head of INOC and OMC - Head of INOC and OMC
3 Experts - 3 Experts
Power and
administration belongs
to Federal Government
where as they are
legitimizing the KRG
existence and authority.
Power and administration belongs to
Federal Government and KRG is not
recognized. INOC and OMC are not
taking place and all the power is left to
FCOG. MoO is a member.
Power and administration belongs to
Federal Government where as they
are legitimizing the KRG existence
and authority.
ZEY, 2011

6. Negotiation Procedure
No violiation against to
Law and model Contracts
submission
CoM
Competent Body
(MoO, INOC, RB)
Negotiteswith
IOCandsigns
FCOG BIA
CoR Approval
Violation against the
Law and model
contract
Decision given
by 2/3 of the
resubmission
ZEY, 2011

7. KRG Oil Law_9 August 2007
• Definitions
• Iraqi Federal Government
• Region and Regional Government _KRG
• President _KRG President
• Parliament_ KNA
• CoM_ CoM of KRG
• Regional Council_ KRG
• Ministry_MNR
• Sharing of revenues of the producing fields in the KRG with Federal Government of Iraq after 2005
• KRG shall together with the Federal Government jointly manage Petroleum Operations related to producing fields
• Regional Council of KRG
• President
• Deputy President
• Minister of Natural Resources
• Minister of Finance and Economy
• Planning Minister
• KEPCO_KRG E&P Company
• KNOC_KRG National Oil Company
• KOMO_KRG Oil Marketing Organization
• KOTO_KRG Oil Trustt Organization for receiving revenues from Current Producing Fields and Future Fields on behalf of
the KRG
• KRG and Federal Government must jointly manage Current Fields provided that KRG shall have proportional role
on FCOG and a partner in INOC
• Federal Government must not practice any new Petroleum Operations in the disputed territories without approval of
KRG ZEY, 2011

8. Deloitte
Organizational Structure in Iraq and KRG
• Licences are given on the negotiation
base
• Production sharing agreements are
given
• Passed their own oil law in 2007
• Service contracts are given by bidding in
order to get the best benefit on behalf of the
Iraqi people
• The contracts main scope is to increase and
rehabilitiation of the currently producing giant
fields
ZEY, 2011
Deloitte

9. Irak Bidding Rounds_SC – KRG _PSC
Iraq Part
• 3 “bidding round” realized
• Total 14 contracts signed
• Exxon, Shell, CNOOC, BP aresome of the
major operators in these contracts
KRG Part
• Before 2005
• 8 contracys signed (BinaBawi, Dohuk, Erbil,
Kalar Bawinoor, Kewa Chirmala, Shakal, Taq
Taq, Tawke).
• 2005-present
• 39 kontrat
• 22 discoveries
• 4 producing
ZEY, 2011
Deloitte

10. PSA_ KRG Model
Profit Share Breakdown
Goverment Revenue Breakdown
ZEY, 2011

11. SDPC_Iraq
As it is a service type
contract there is no
transfer of rights
Cash flow breakdown
ZEY, 2011

12. Iraq_Objectives of Oil Sector
• To increase oil and gas reserves by the help of new technology
• To develop the 15 unedveloped field and to drill the 395 structure
• 12 million bbl/d production in 2017
• To reach 3 million bb/d production in 2011 (realized by the of 2013)
• KRG wants to reach 4 million bbl/d by the end of February 2014
ZEY, 2011
Deutsche Bank
2010
Deutsche Bank

13. Iraq: non existing Oil Law but existing Oil Contracts !
• Baghdad should come into consensus with all the regional governorates in making a
collaborative oil law
• The draft oil law could not pass from the parliament as it did not take all the consensus of
all the parties present in the country.
• The reason for this is the Iraqi Sunnis want a centralized authority where as the Kurdish
want regions to be more powerful. Iraqi Shiis also desires the Central authority as the
biggest producing regions belong to them. This will lead them to control all the oil sector in
Iraq.
• KRG passed her oil law and signs contracts accordingly which creates more autonomous
region. And ıt is very late for the Federal Government that she can ignore the contracts
that has been signed by KRG.
• KRG gets the most benefit out of the oil law conflict, because although a non existing oil
law seems to be a risk for an investor, KRG signed big contracts with the major oil
companies which will result a more powerful regional government both politically and
materially.
• With in the Parliament the vote of Kurdish is mandatory in order to pass any law which
gives more power to KRG also.
• Federal government is in the prosperity of realizing the big contracts with the major IOC’s
; however these plateau targets are hard to achieve as the infrastructure is not sufficient;
so she can not reduce the amount of fee paid when the plateau target has not been
reached by the contractor. In fact Iraqi goverment is loosing money.
ZEY, 2011

14. Future of Iraq
• Iraq will still continue to play an important role in oil business in near
and far future.
• The increase of production in Iraq is important as non-OPEC
producing countries faces with production declines.
• Iraq has enourmous amount of oil reserves still waiting to be explored
and waiting huge amount of investment in order to be developed.
• There is no other place left on Earth with such a low technical risk
and big reserve in return of big investment.
• Iraq need urgent infrastructure as in 2017, all the fields should to
reach their plateau where 12 million bbl/d of oil production should be
realized according to the contracts.
What has Iraq to do first?
ZEY, 2011