Business News

Iraq could have twice as much oil as thought: study

Apr 19, 2007, 8:35 GMT

London - A study has indicated that Iraq could have twice as much oil as previously thought, the Financial Times reported on Thursday.

The study, conducted by US consultancy IHS and the first comprehensive probe of its type since the 2003 US-led invasion of the country, concludes that a further 100 billion barrels of oil could be located under Iraq's western deserts.

Should the indications be correct, Iraq could overtake Iran as the world's second-largest oil-producing nation after Saudi Arabia.

The news underscores the attractiveness of Iraq for international oil companies as long as the conflict in the country can be resolved, the London-based newspaper wrote.

The study was conducted using analysis of geological surveys from prior to the 2003 invasion of Iraq as well as from subsequent years.

Additionally, the study noted, production costs in Iraq are low compared to offshore developments.

'Obviously the security situation is very bad, but when you look at the sub-surface opportunity, there isn't anywhere else like this. Geologically, it's right up there, a gold star opportunity,' IHS expert Robert Mobed told the Financial Times.