<p class="MsoNormal" dir="RTL" style="text-align: center; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="center"><strong style="mso-bidi-font-weight: normal;"><span dir="LTR" lang="EN" style="font-size: 18.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq and fuel hope for sufficiency and ambition to export</span></strong></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span style="color: #3598db;"><strong style="mso-bidi-font-weight: normal;"><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">Hashem Al , Husseini</span></strong></span></p>
<p dir="ltr"><span style="color: #3598db;"> </span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><strong style="mso-bidi-font-weight: normal;"><u><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Introduction</span></u></strong></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq is one of the first countries in which hydrocarbon resources (oil and gas) were discovered in commercial quantities, as in 1927 the first flow of oil from the BabaKarak well</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> in </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>the Kirkuk field, which is one of the giant fields in northern Iraq and is still continuing production until now, nearly a century.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">And then rolled discoveries of other fields in the north and south of Iraq to put it at the forefront of the oil countries, where its oil reserves amounted to more than 145 billion barrels, occupying</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">fourth place in the world </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>and </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">gas 131 trillion cubic feet to come in the myrrhk g</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> 1 </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>1 globally, despite that, Iraq has suffered from crises and wars that squandered this wealth andlost the ability to benefit fromit. In achieving self-sufficiency and meeting its local need for</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> fuel due to the lack of completion of infrastructure associated with the oil </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>industry or in some wars the destruction of those facilities, as happened in the first and second Gulf wars</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, and </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">this matter made Iraq far behind the sight</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> of countries</span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">, it is surprising that Iraq, the second largest exporter in OPEC, imports oil derivatives and gas fuel with billions of dollars annually due to the lack of infrastructure and manufacturing facilities <span style="mso-spacerun: yes;">&nbsp;</span><span style="mso-spacerun: yes;">&nbsp;</span>Or with the obsolescence of that facility thathas passed more than twice its operational life </span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq also lacks associated gas investment projects, as Iraq is the second largest country</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> to burn </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>this wealth after Russia and the only country in the world to burn gas in its oil fields and import gas to meet its domestic need of using it as fuel for electric power plants</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><strong style="mso-bidi-font-weight: normal;"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The development of the Iraqi oil industry</span></strong></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The oil industry is divided into two main parts: the extractive industry and the manufacturing industry, and the extractive industry is concerned with all operations and activities aimed at extracting</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> oil from oil reservoirs, and the manufacturing industry is </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>the one in which </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>oil is </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">processed</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> and </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">converted from a raw</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> material </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>to materials and oil derivatives that are used in other industries, and in turn, the manufacturing industry is divided into several sections, including refining, refining, petrochemical industries and others. <span style="mso-spacerun: yes;">&nbsp;</span></span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The Iraqi extractive industry witnessed boom cycles followed by periods of decline and decline, and these periods have their causes, they are mainly related either to wars, as we mentioned earlier, or to the state of the global market, where it went through three cycles of progress and decline from 1973-2017</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">as </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">first collapse occurred in 1980 after oil production reached a record 3.75 million barrels, and then collapsed to nearly 500 thousand barrels due to the Iran-Iraq war and after the recovery of production and the restoration of quantities, where it reached nearly The 3.5 million barrels in 1991 collapsed to a semi-stop </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>due to the invasion of Kuwait and the Gulf War, and then the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">gradual recovery began very slowly due to the economic embargo on Iraq to recover slightly after the oil-for-food program until 2003, when production reached nearly two million barrels, then collapsed due to the war of liberation to begin the recovery phase and very ambitious plans to provide financial liquidity to restore Iraq plans to reach 12 million barrels by 2012, but this goal is a crazy goal for several considerations that we do not want to go through</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">This historical path of the extractive oil industry was accompanied by the same path for the manufacturing industry, perhaps more than the calamities, as the infrastructure suffered </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>from a significant shortage and </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">continuous targeting of refining and refining facilities every time, which made Iraq suffer from fuel crises despite its large production, as it is today importing oil derivatives </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>in </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">exchange for a delay and slowdown in completing liquidation projects and not completing them on time, as in the Karbala refinery, which is scheduled to enter into production in 2018. But until today it has not started actual production </span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><strong style="mso-bidi-font-weight: normal;"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Oil Manufacturing Industry</span></strong></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">This industry includes the operations of converting oil from raw material to oil derivatives or other materials extracted from oil, which is a wide and multiple industry, but we will limit our talk here to a small part of it, which is oil refining operations or refineries.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq owns three public refineries companies, the South </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Refineries Company, which owns </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">3 oil refineries: Shuaiba</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Messian</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Dhi Qar</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, and a refinery under construction, the Faw </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">refinery</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, with a </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>total</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">refining capacity</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> of </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>approximately 570 thousand barrels per day, and the Central Refineries Company</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">which consists of 4 refineries</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">: </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Dora, <span style="mso-spacerun: yes;">&nbsp;</span>Najaf, Samawa andDiwaniyah</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">.</span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"> Three under construction are the Karbala-Anbar and Kut refineries</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> with a combined refining capacity of 610 thousand </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>barrels</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>and the North Refineries Company</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, which </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>owns 6 refineries</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>namely Baiji Kirkuk, the Chinese modern Kasks, and Qayyarah</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> with </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>a total <span style="mso-spacerun: yes;">&nbsp;</span>refining capacity of 400 thousand barrels per day. <span style="mso-spacerun: yes;">&nbsp;</span>The most important losses Iraq suffered in the refining industry is the loss of the Baiji refinery located in Salah al-Din province during the events of 2014, where this refinery was the largest in terms of production capacity, covering approximately 20% of Iraq's need for fuel. </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>The production capacity of the above refineries </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">is at a maximum capacity of 1.7 million</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> barrels / day but the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>actual refining does not exceed 700 thousand</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> barrels / day due to the outing of service of the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Baiji refinery with high production (about 310 thousand barrels per</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">day) in 2014 and the presence of some refineries under construction.<span style="mso-spacerun: yes;">&nbsp;&nbsp; </span>Some are not operating at maximum capacity for obsolescence and other technical reasons.</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">According to the plan, the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Karbala refinery with a refining capacity of 140 </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>thousand barrels </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>per day will enter the actual work at the end </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>of this year, and the return of the Baiji refinery to its </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">production capacity of 310 thousand barrels / day</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, which is scheduled to be gradually returned after the repair of the basic units in this refinery, and that the rest of the refineries are under construction,<span style="mso-spacerun: yes;">&nbsp; </span>such as the Faw refinery, which was signed with the Chinese side last year, and which is scheduled to complete the project in 2025, which is one </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">of the largest refineries</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">.</span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"> Refining capacity of 300 thousand barrels / day. Also, refineries that need maintenance or replacement of dilapidated and out-of-service units due to obsolescence or military damage are also the ones that will provide the refining process with the needs of the market of products, which contribute to the gradual elimination of imports. Revenues from domestic oil derivatives are estimated at $5.3 billion, but these revenues are not invested locally, but are spent again importing oil derivatives that are not available locally.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><strong style="mso-bidi-font-weight: normal;"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Gas Industry</span></strong></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq has large gas reserves that put it</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> in eleventh place in the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">series of countries with an estimated reserve of about 131 trillion standard cubic feet distributed over three types, namely </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>free gas </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">fields</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, associated gas and dome gas, where the first type represents the gas freely present in individual </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">gas</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> fields and independent of oil fields and reservoirs </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>, while the second type is the gas associated with oil and is found dissolved in oil in reservoirs under high pressures and is released as soon as the pressure disappears at production The third type is gas in the form of a gas dome above the oil reservoirs.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> vast </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">majority</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> of the proven </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">reserves </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>of gas </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">and</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> the associated type, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>where this type represents 71% of Iraq's gas reserves</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> and is </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>mainly found in oil reservoirs in southern Iraq, followed by free gas by about 20%, while the dome gas is the least and represents about 9% of the proven reserves.<span style="mso-spacerun: yes;">&nbsp; </span></span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The gas industry is closely linked with the oil extractive industry because </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>the Iraqi gas reserves of associated gas, </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">a gas associated with oil and comes out with</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">method of accidental production of oil extraction operations, there is no way to store or benefit from it except by isolating it, investing it or burning it, which is not currently done, as this wealth is wasted due to the lack of projects and interest in oil extraction operations at the expense of associated gas investment.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq has ten free gas fields</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">, five of</span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"> which are located in eastern and northeastern Iraq: the fields of Kor Mor, Chamgmal, Khashm al-Ahmar, Jiriya Yeka and Mansuriya</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> and contain between them about </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>11 trillion cubic feet (about 300 billion cubic meters) as fixed reserves. </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>The </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Siba</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> field (</span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">30 km south of Basra</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">) </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">and the Acre field (in the Western Desert near the Syrian border)</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> contain </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>just over Two trillion cubic feet (about 100 billion cubic meters) of fixed reserves each,</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> while the third type, which is </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>dome gas, which covers oil reservoirs, </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>is the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">least important type because it is the natural driving tool for oil production</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"> and </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>can only be produced in the final stages of oil fields where oil is depleted and this gas is dispensed with as an oil lifter</span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal" dir="RTL" style="text-align: left; line-height: 150%; direction: rtl; unicode-bidi: embed;" align="right"><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The gas industry is one of the important industries that are no less important than the oil industries, as it is the main element and cornerstone </span><span dir="LTR" lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>in the </span><span dir="LTR" lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">process of switching from fossil fuels to clean fuels or clean energy, as gas is the link in the transition process, as it is the hydrocarbon with little gas emission and little pollution compared to the rest of the fossil fuels. </span></p>
<p class="MsoNormal" style="line-height: 150%;"><strong style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Local need for fuel</span></strong></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq's fuel needs are divided into the following needs: oil derivatives for domestic consumption and gas for electric power plants</span><span lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoListParagraph" style="text-indent: -.25in; line-height: 150%; mso-list: l0 level1 lfo1;"><!-- [if !supportLists]--><strong><span lang="EN-GB" style="font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-bidi-language: AR-IQ;"><span style="mso-list: Ignore;">1-<span style="font: 7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></strong><!--[endif]--><strong style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The need for derivatives</span></strong></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The actual refining capacity of Iraq's refineries is estimated at about </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>700 </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>thousand barrels per day, while the daily domestic need is about 1.3 million barrels, meaning there is a gap estimated at 600 thousand barrels, which is equivalent to 40% covered by imports</span><span lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>Iraq's import is mostly of gasoline fuel of low quality and high octane, which is commercially called regular and improved gasoline, which is a light product that is used as fuel for cars , as Iraq imported in 2021, according to the data of the Oil Marketing Company </span></p>
<p class="MsoListParagraphCxSpFirst" style="text-indent: -.25in; line-height: 150%; mso-list: l1 level1 lfo2; tab-stops: list .5in;"><!-- [if !supportLists]--><span lang="EN-GB" style="font-size: 10.0pt; mso-bidi-font-size: 14.0pt; line-height: 150%; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-language: AR-IQ;"><span style="mso-list: Ignore;">&middot;<span style="font: 7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><!--[endif]--><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The quantities of imported gas oil amounted to one million and 74 thousand tons, or approximately 7 million barrels, with a value of 657 million and 442 thousand dollars.</span></p>
<p class="MsoListParagraphCxSpMiddle" style="text-indent: -.25in; line-height: 150%; mso-list: l1 level1 lfo2; tab-stops: list .5in;"><!-- [if !supportLists]--><span lang="EN-GB" style="font-size: 10.0pt; mso-bidi-font-size: 14.0pt; line-height: 150%; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-language: AR-IQ;"><span style="mso-list: Ignore;">&middot;<span style="font: 7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><!--[endif]--><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The quantities ofgasoline</span><span lang="EN" style="mso-ansi-language: EN;"> amounted to 3 million and </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>457 thousand tons, or approximately 21 million barrels</span><span lang="EN" style="mso-ansi-language: EN;">, </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">with a value of two billion and 543 million and 620 thousand dollars.</span></p>
<p class="MsoListParagraphCxSpLast" style="text-indent: -.25in; line-height: 150%; mso-list: l1 level1 lfo2; tab-stops: list .5in;"><!-- [if !supportLists]--><span lang="EN-GB" style="font-size: 10.0pt; mso-bidi-font-size: 14.0pt; line-height: 150%; font-family: Symbol; mso-fareast-font-family: Symbol; mso-bidi-font-family: Symbol; mso-bidi-language: AR-IQ;"><span style="mso-list: Ignore;">&middot;<span style="font: 7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span><!--[endif]--><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The quantities of white oil amounted to 163 thousand tons worth 102 million and 340 thousand dollars.</span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The most important reasons for the high local need for fuel are not because of industries or factories, but most of the imported fuel goes to cover the daily need for private </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>transportation </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The reason for the lack of public transportation, which shortens a lot </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>of the </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">use </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>of personal wheels </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">that consume fuel in large quantities, as personal wheels in Baghdad, according to the statistics of the General Traffic Directorate for the year 2021, are estimated at approximately 2.5 million cars </span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Refining capacities are estimated at 680,000 barrels per day, while the actual need ranges from 1.100 million to 1.400 million barrels per day..</span></p>
<p class="MsoListParagraph" style="text-indent: -.25in; line-height: 150%; mso-list: l0 level1 lfo1;"><!-- [if !supportLists]--><strong><span lang="EN-GB" style="font-size: 14.0pt; line-height: 150%; mso-bidi-font-family: Calibri; mso-bidi-theme-font: minor-latin; mso-bidi-language: AR-IQ;"><span style="mso-list: Ignore;">2-<span style="font: 7.0pt 'Times New Roman';">&nbsp;&nbsp;&nbsp;&nbsp; </span></span></span></strong><!--[endif]--><strong style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Local need for gas</span></strong></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The local need for gas is divided into two parts: liquid gas, which Iraq is achieving sufficiency of, and exports large quantities annually amounting to 139 thousand tons in 2021 worth 71 million dollars, and Iraq's exports of liquid gas were estimated at 456 thousand tons at a value of 288 million dollars.</span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">The other section is dry gas, which is used as fuel for electric power plants, of which Iraq suffers from a shortage estimated at about twice its production</span><span lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq has 26 gas-fired generating</span><span lang="EN" style="mso-ansi-language: EN;"> stations and the actual need for </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>these stations combined represents Iraq's total need for gas, which amounts to 3300 mqm</span><span lang="EN" style="mso-ansi-language: EN;"> per day, Iraq </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>produces approximately 3000 mg per day burns approximately 1650 due to the lack of insulation and treatment projects and if Iraq wants to reach full electrical production from the use of gas, this means its need to double the amount invested </span></p>
<p class="MsoNormal" style="line-height: 150%;"><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iraq imports the remaining quantities of about 1,500 maqqm</span><span lang="EN" style="mso-ansi-language: EN;"> from </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">Iran and amounts exceeding $ 5 billion</span><span lang="EN" style="mso-ansi-language: EN;">, </span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;">according todata from the Iraqi Ministry of Oil</span><span lang="EN" style="mso-ansi-language: EN;">.</span><span lang="EN" style="font-size: 14.0pt; line-height: 150%; mso-ansi-language: EN;"> </span></p>
<p class="MsoNormal"><strong style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">Achieving self-sufficiency and switching to export </span></strong></p>
<p class="MsoNormal"><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">Self-sufficiency in dry gas is achieved in the event of the completion of the gas projects that are being worked on, and it is hoped that all of them will be completed by the end of 2025, namely the Nasiriyah gas investment project with a capacity of 200 mqmqm per day, the Halfaya field investment project with a capacity of 300 mqmqm per day, and the Artawi field project in its three stages with a capacity of 600 mqmqm per day, in addition to oil fields investment projects (free gas), the most important of which are the fields of Akas and Mansourieh</span><span lang="EN" style="mso-ansi-language: EN;">.</span></p>
<p class="MsoNormal"><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">In the case of oil derivatives, sufficiency of them depends on the completion of the refineries under construction and the return of the damaged units in the Baiji refinery, all of which may reach production </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>to </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">more than the actual need, which leads to a shift from import to export, which will be a strong tributary to the state budget, which is what the reform paper (white paper) planned in its second part, paragraph 33 on reforming the refinery sector and diversifying Iraq's exports of oil derivatives. </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span></span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span></span></p>
<p class="MsoNormal"><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">From the foregoing, it is clear that achieving self-sufficiency, but rather switching from an importer to an exporter of oil and gas derivatives, is not an impossible task</span><span lang="EN" style="mso-ansi-language: EN;">, and </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">that Iraq needs </span><span lang="EN" style="mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>the </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">political will mainly to reach self-sufficiency in fuel</span><span lang="EN" style="mso-ansi-language: EN;">, both types of oil and gas </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>derivatives</span><span lang="EN" style="mso-ansi-language: EN;">, </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>as the current refineries, which are under construction</span><span lang="EN" style="mso-ansi-language: EN;">, </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>and isolation and pressure projects for associated gas, which were contracted by the Ministry of Oil</span><span lang="EN" style="mso-ansi-language: EN;">, </span><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;"><span style="mso-spacerun: yes;">&nbsp;</span>if it worked at its maximum capacity, would have achieved sufficiency. </span></p>
<p class="MsoNormal"><strong style="mso-bidi-font-weight: normal;"><span lang="EN" style="font-size: 14.0pt; line-height: 107%; mso-ansi-language: EN;">Dispensing with the import of oil and gas derivatives will save about $ 10 billion annually that can be used to sustain refining and gas projects and add new projects and units and expand these projects contributes to Iraq's diversification of its exports, which suffer from unilateralism.<span style="mso-spacerun: yes;">&nbsp; </span></span></strong></p>
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