Unlocking southern Iraq’s oil

Baghdad’s revisiting on contractual terms may need to be radical to stop IOC flight and offer alternatives to China

Southern Iraq is home to some of the world’s largest oilfields. Combined with a low cost of extraction, it is easy to see why the country places behind only Saudi Arabia as Opec’s second-largest oil producer. But taking advantage of significant remaining growth potential is a much trickier proposition and may require short-term concessions for longer-term gain. Reserves According to Opec data, Iraq has total oil reserves of 145bn bl, with the majority located in the south of the country. There is also believed to be significant upside potential pending further exploration. Roughly 85bn bl are conveniently spread across south-eastern supergiant fields including Majnoon, Rumaila, West Qurna-1,