WASHINGTON, Oct 20, 2010 (AFP) - The International Monetary Fund Wednesday said it has lowered Iraq's oil production forecast, after a disappointing 2010.
In its first review report of its February 3.7 billion dollar standby loan to Iraq, the IMF said it expected Iraqi oil production to reach 2.2 million barrels per day (bpd) in 2011, against the 2.9 million it forecast in February.
Dated September 20 but published on Wednesday, the IMF report also lowered Iraq's projected 2012 oil production to 2.6 million bpd, from 3.1 million bpd in February.
Iraq's oil output in 2010 was already well below Baghdad's expectations, with only 2.6 million bpd forecast by the end of the year.
"Production and export volumes have been disappointing," the IMF said, adding that average exports of 1.88 million bpd in the first half of the year were "significantly lower than the target of 2.10 million bpd for the year."
"Bad weather delayed tanker loadings at the main export terminals near Basra, while a bomb attack in April temporarily interrupted exports through the northern pipeline to Turkey," the report said.
"Also, internal political difficulties caused delays in the expected increase in exports from the northern fields," the IMF added.
In June, Iraq's oil minister said the country's oil production would grow to 10-12 million bpd in 2017.
Exempted from quotas established by the Organization of the Petroleum Exporting Countries (OPEC), Iraq boasts of the world's third largest oil reserves behind Saudi Arabia and Venezuela.
The IMF in February awarded Iraq a two-year, 3.7 billion dollar loan, of which 1.2 billion has already been disbursed.
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Copyright AFP 2010.
