ORHA Fact Sheet - Ministry of Oil

ORHA Fact Sheet Office of Reconstruction and Humanitarian Assistance Thuraya Phone: 88-216-7744-1080 Email: orhapic@yahoo.com Ministry of Oil Fact Sheet May 12, 2003 Overall Information The Ministry of Oil is responsible for the exploration, production, distribution and marketing of crude oil, as well as the refining and distribution of petroleum products. The interim Minister of Oil, Thamir Al-Ghadhban, said the ministry is making rapid progress to reconstruct the oil infrastructure and restore production to pre-war levels. Iraqi oil management, engineers and workers have been working with U.S. advisors to assess damage and make repairs to critical nodes in the system. Thamir Al-Ghadhban is guardedly optimistic, but realizes that the damage done to the refineries from the war as well as from looters and a shortage of water are hindering the reconstruction process. Iraqi and coalition engineers are working hard to being additional oil fields on line, understanding that oil export revenues are an important source of funding for Iraqi reconstruction. Currently production of crude oil is at 180,000 barrels per day, with a goal of one million barrels per day by the end of June. Pre-war production capacity was about three million barrels per day, 2.1 million of which were exported. Nearly 100 percent of the workers in the oil industry have returned to work in the refineries and production facilities. Also, the ministry has already reached more than 50 percent production of crude oil for domestic consumption and hopes to achieve 100 percent in the coming weeks. Early production is helping to return power and fuel products to the Iraqi people for electricity, cooking and transportation needs, key initial benchmarks in the reconstruction effort and return to normal life. Fuel shipments of gas and LPG, 100-200 trucks per day, have begun to arrive from Turkey and Kuwait. These shipments will ease the shortage crisis within one week. Iraq has negotiated agreements with Jordan to trade other refined products for gas and LPG. Similar negotiations are also underway with Turkey. Lifting U.N. sanctions is absolutely critical to restoring the oil industry and facilitating the self-sufficiency of the Iraqi people. Iraq currently has 112 billion barrels of oil in reserve. The requirement for this control ended the day Saddam Hussein’s regime fell; the Iraqi people now urgently need more flexible access to these funds to buy food and medicine, pay salaries, and rebuild after more than two decades of misrule. An advisory board has been formed with experts in the oil sector, including Iraqi nationals and supplemented by international experts. The board will provide management with professional advice and guidance, while bringing an important element of openness and accountability to oil sector operations.