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Iraq Starts Production at Al-Ahdab Field

Source: Bloomberg 7/23/2011, Location: Middle East

Iraq started production of 60,000 barrels a day at the al-Ahdab oil field in al-Wasit province, Mahdy al-Zubaidy, the governor of the province, said. The field’s output will increase to 120,000 barrels a day by the end of the year, al-Zubaidy said in an interview. Hussain al-Shahristani, deputy prime minister for energy affairs, inaugurated production at al-Ahdab, the governor said.

Iraq, home to the world’s fifth-biggest oil reserves, is struggling to boost energy exports, the main source of revenue, to help rebuild an economy shattered by years of conflict, economic sanctions and sabotage. The country has signed 15 gas and oil licenses since the 2003 U.S.-led invasion of Iraq that ousted the regime of President Saddam Hussein. State-run China National Petroleum Corp. won a $3.5 billion development contract for al-Ahdab in November 2008. Iraqi officials estimate Al-Ahdab contains about 1 billion barrels of oil.

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