Transparency needed in Iraqi oil sector

UNITED NATIONS, Feb. 17 (UPI) -- Full transparency and tackling corruption in the Iraqi oil industry could pave the way to a production level of 12 million barrels per day, U.N. officials said.

Ad Melkert, the head of the U.N. Assistance Mission for Iraq, briefed the U.N. Security Council on the activities of his mission. He said full transparency and combating corruption in the oil industry would create an attractive climate for foreign investors.

Iraq had its first post-war oil auction in June but many international investors shied away. December auctions, however, gave Baghdad the confidence to say it could one day rival Saudi Arabia in terms of oil production.

Hamid al-Bayati, the Iraqi representative for the United Nations, hailed the December auctions as a "turning point" in the national oil sector.

He said the success of the December contracts would boost Iraqi oil production to 6 million barrels per day within six years. By 2020, he said, oil production could reach 12 million barrels per day.

Industry analysts offer similar predictions but the forecast is closer to 10 million bpd by 2020.

Iraq still faces several political and security hurdles before it emerges as a regional oil giant. Nevertheless, Bayati said the share of oil wealth for Iraqi citizens could rise from $1,534 per person currently to $9,488 by 2020.