production capacity of oil and gas in Kurdistan

Region-Iraq

Name : Shano Kamal Raheem

Department : Chemical Engineering

Assignment No. 2/ 20th February 2022 Page 1

production capacity of oil and gas in Kurdistan Region-Iraq :

ERBIL-Hewler, Kurdistan region ‘Iraq’,—

DOR Organization for Kurdistan Oil and
Gas Information has recently published
a report about Kurdistan Region’s oil
and gas sector and announced that
Kurdistan Region is the world’s 8th in
terms of its oil and gas reserves, and
that it will be last place in the world to
run out of oil.

Although, Kurdistan region of Iraq has

significant potential for metallic and non-metallic minerals, the region all
attention focused on the hydrocarbon sector leaving the former resources mostly
undeveloped hence, the entire economy of Kurdistan region-Iraq became almost
based on its oil and gas reserves.

According to OPEC, Kurdistan region of Iraq accounts for 43.7 billion barrels of
proven oil reserves 25.5 billion more barrels of unproven reserves and between 3
and 6 trillion cubic meters of gas accounting for (30% of Iraq’s proven oil reserves
and 89% of all gas reserves of Iraq) and These figures would put Kurdistan region
among the top 10 oil rich regions in the world (in the 8th place in the world for oil
and gas reserves).

According to Ministry of Natural

Resources (MNR), the
production of oil in Kurdistan
region is expected to grow to
reach 2 million barrels per day
(bpd) by 2035 (Figure 1)

Assignment No. 2/ 20th February 2022 Page 2

Kurdistan oil production forecast
for the top five companies is
illustrated in Figure 2.

On another hand, gas

production stood at around
3-4 (Billion cubic meters)
annually up to 2015, the
forecast revealed that gas
production will grow
afterward every year it will
be five times by 2035 as
shown in Figure 3.

Crude Oil Production Cost & Price :

Assignment No. 2/ 20th February 2022 Page 3

 Generally, the total cost of producing crude oil includes all of the costs from
project site plan development to lifting oil from the well. The total cost of
producing crude oil is broken into two categories: Capital Expenditure and
Operational Expenditure. Capital expenditure is the total costs associated to the
operations of exploration and drilling, processing and construction of facilities and
pipelines and equipment, while operational expenditure includes the total costs
related to the operations of the pumping of oil from the fields and the
maintenance and the salaries of the workforce, experts and transportation of oil.
The cost of oil production is affected by several factors including:

A. The geographical nature Geographical nature is the most important element

that have influence on the cost of oil production huge wild fields have low
production cost, while the cost of production in the offshore of the shallow water
is more and cost of fields in deep water are very high.

B. The extraction cost The extraction cost increases wherever the extraction is
extended to the stocks or reserves which are less quality or purity.

Reference :

Assignment No. 2/ 20th February 2022 Page 4

 • Iraqi Kurdistan has world's 8th oil and gas reserves (ekurd.net)
• Oil & Gas Industry of Kurdistan Region of Iraq: Challenges and
Opportunities (crimsonpublishers.com)
• Deloitte Report on Kurdistan Region Oil and Gas | Iraq Business
News (iraq-businessnews.com)

Assignment No. 2/ 20th February 2022 Page 5