BAGHDAD – Iraq, home to some of the world’s largest oil reserves, is underutilizing its vast resources, according to a former oil minister. Abduljabbar al-Luaibi criticized the country’s current energy policies and the restrictions imposed by OPEC, urging a comprehensive overhaul of the oil sector.
During a panel discussion at the Iraq Development Platform conference in Baghdad on Wednesday, Luaibi highlighted that while Iraq boasts 520 geological oil patches, only 73 are currently in use. “Iraq is situated on lakes of oil, but it doesn’t make a difference,” he said, pointing out the untapped potential of the country’s oil fields.
As OPEC’s second-largest oil producer after Saudi Arabia, Iraq has been adhering to its OPEC+ production cuts. In December, the country’s crude exports fell to 3.259 million barrels per day, marking its lowest annual sales average since 2015, according to *Iraq Oil Report*.
Luaibi expressed his frustration with OPEC-imposed restrictions, suggesting that Iraq should have more control over its own resources. “Considering that the country is our country, we are free to do whatever we want with it,” he argued.
While acknowledging the growing importance of renewable energy, Luaibi emphasized that oil remains central to Iraq’s energy strategy. He called for a complete overhaul of the oil industry, advocating for changes at all levels—government, parliament, and among industry experts. “This industry requires total revision… you need planning,” he said, stressing the need for a coordinated effort to manage Iraq’s oil wealth effectively.
He also criticized the bureaucratic and administrative structures within Iraq’s oil ministry, claiming they have remained stagnant for decades. Iraq’s oil sector is managed by 16 state-owned companies, with the North Oil Company overseeing fields in the oil-rich Kirkuk province. The region is poised for redevelopment through a partnership with British energy giant BP.
Earlier this month, a delegation led by Iraqi Prime Minister Mohammed Shia’ al-Sudani signed a deal with BP in London to revitalize the Kirkuk fields. BP’s head in Iraq, Zaid Elyaseri, indicated on Tuesday that the agreement might be finalized by February. Elyaseri highlighted the project’s potential to stimulate the local economy by collaborating with local companies and creating job opportunities. He also assured that BP is committed to working with the existing workforce at the North Oil Company.
Despite these developments, Luaibi’s comments underscore the ongoing challenges Iraq faces in fully capitalizing on its oil reserves and the broader need for reform in the country’s energy sector.
