Letter from Iraq: Oil sector needs drastic reform

While its regional neighbours reap the rewards of oil and gas success, Iraq’s hydrocarbons sector is lagging behind

Iraq’s oil sector has been suffering from mismanagement since 2003, with major capital-intensive projects failing to deliver results. Over a decade ago, the future envisioned for Iraq’s energy sector was very different. In 2012, Iraq cooperated with the World Bank in preparing the Integrated National Energy Strategy, which was intended to cover 2013–30, and with the IEA in putting together a special report on the country’s energy prospects. One of the most important results of these two activities was that Iraqi authorities became convinced of the need to seriously reconsider previously contracted production targets and to amend existing contracts. The official call for a review of licensing