Iraqi plans, Nigerian violence and more refineries

This section summarizes downstream developments of the previous month. Exploration & Production are covered in 'Upstream Review'.
Iraq has announced several schemes to raise its production of oil, natural gas and LPG, and to upgrade its refinery system. Work on all these projects, however, continues to be hindered by the high levels of violence, despite the arrival of more US forces in some of the worst-affected areas. The only region where reconstruction and new developments can take place is in the Kurdish north of the country, but here, political tensions between the regional government of Kurdistan and Baghdad are threatening plans to develop new oilfields. Baghdad objects to a series of development deals signed between the Kurdish regional government and various oil and gas companies, one of which has led to the development of a new oilfield and associated infrastructure at Tawke, which is expected on-stream shortly with an output of about 20,000 bpd. Baghdad has drawn-up new rules stating that all such deals should be signed with the central government. Kurdistan's regional government is fighting to retain control of its oil and gas industries.