Ministry of Oil
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. Iraq has approximately 112 billion barrels of oil in reserve.
The interim Minister of Oil is Thamir Al-Ghadhban. 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.
Damage done to the refineries from the war as well as from looters and a shortage of water is reported to be hindering the reconstruction process.
As of mid-May 2003, production of crude oil stood at 180,000 barrels per day, with a goal of one million barrels per day projected for the end of June 2003. 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. As of mid-May 2003, the ministry had reached more than 50 percent production of crude oil for domestic consumption and was hoping to achieve 100 percent in the forthcoming weeks.
As of mid-May 2003, fuel shipments of gas and LPG, 100-200 trucks per day, were being made from Turkey and Kuwait, with the aim of easing the shortage crisis and temporarily supplement local production. Iraq has negotiated agreements with Jordan to trade other refined products for gas and LPG. Similar negotiations were also underway with Turkey.
An advisory board was also formed with experts in the oil sector, including Iraqi nationals and supplemented by international experts. The board is to provide management with professional advice and guidance, while bringing an important element of openness and accountability to oil sector operations.
Security is of an important factor, with the oil sector working in concert with Coalition forces to build up its internal security capabilities.
