Two million barrels of oil to establish the Energy and Development Fund
Two million barrels of oil to establish the Energy and Development Fund
2026/07/22
The government seeks to redraw the map of the national economy and secure long-term financial stability through a promising oil investment project that includes allocating two million barrels per day of crude oil to establish the (Energy and Development Fund), in a step aimed at linking untapped natural resources to sustainable development and strategic projects.
In detailing this direction, the Prime Minister’s Advisor for Financial Affairs, Dr. Mazhar Muhammad Saleh, revealed in a special statement to “Al-Sabah” that Iraq is moving towards producing an additional two million barrels of crude oil, noting that this quantity represents Iraq’s share that has remained idle and uninvested since (1980) due to the geopolitical complexities and problems that the region has gone through, despite Iraq possessing a huge reserve stock that qualifies it to expand its export capacity.
Saleh explained that the agreements and investments recently concluded in the United States with major international oil companies aim to reach this additional production ceiling within the next three years, stressing that the financial returns from these quantities will be deposited directly into the “Energy and Development Fund” to finance and construct strategic projects and major infrastructure throughout the country.
For his part, economist Mahmoud Dagher praised this step, considering the project a true roadmap for achieving financial stability and supporting the country’s long-term economic development.
Dagher confirmed to Al-Sabah that the anticipated partnership with the huge American companies opens up unique prospects for Iraq to benefit from their technological and financial capabilities, noting that this cooperation will constitute an encouraging incentive for those companies to invest directly inside Iraq in the fields of refining and purifying oil derivatives, whether inside the country or in external outlets in the future.
However, Dagher did not overlook the executive challenges facing the process, explaining that the successful activation of this fund requires fulfilling two basic conditions, the first of which is international negotiation, which requires securing the production of these quantities of oil outside the ceiling set for Iraq’s share in the “OPEC” organization.
He added that the second challenge relates to oversight and governance, and to establishing clear and specific frameworks for how and where to invest those returns to ensure they are directed in the best possible way.
The economist stressed that the success of this pioneering project also depends on securing export outlets and logistical capabilities, whether by fortifying land pipelines or overcoming geopolitical risks such as the possibility of closing the Strait of Hormuz, which would ensure the continuity of export flows and make the fund a model for successful sovereign investment.
alsabaah.iq
