Dunia Managing Director Kyle Stelma was interviewed by Bloomberg TV on the outlook for economic growth and foreign investment in Iraq. As Dunia reported in its most recent monthly report on commercial activity in Iraq (available here), Iraq’s oil output is expected to reach 3 million barrels per day by the end of 2011, up some 25 percent from 2.4 million bpd a year ago. While current levels of output lag earlier bullish estimates from the Government of Iraq (GoI) and foreign analysts, it is quite possible that with continued development of the southern fields, potential rapid expansion in the case of reconciliation with the Kurdish Regional Government, and additional fields on the table for development in a new auction to be held this year, Iraqi output may yet exceed the current consensus projections of 4.5 million for 2015.
As Bloomberg reports, using data from Dunia’s 2010 Foreign Commercial Activity in Iraq report, the growing oil industry and the surge in oil export revenues (potentially $84 billion for 2011 against initial GoI estimates of $53 billion) has kickstarted Iraq’s economy. With a population of over 30 million, and infrastructure degraded by three decades of war and sanctions, Iraq has the potential to become one of the major destinations for foreign investors and companies in the coming years.
Click here to watch the report.
Posted on Wednesday, December 7th, 2011 at 3:22 pm