Iraq: Death Of Suleimani Jeopardizes Iraq’s Oil Production Growth

Jan 19, 2020 | Scott Carpenter, Forbes
View Original

The death of Iranian commander Qasim Soleimani on January 3rd in an American drone strike has roiled Iran and Iraq. It has also jeopardized the future of Iraq’s oil production growth. Heightened security risks in the wake of Soleimani’s death could persuade the international oil companies active in Iraq—like Exxon Mobil or BP—that investing in infrastructure projects that are key to Iraq’s oil production ambitions isn’t worth it. Iraq’s fiscal terms were already viewed as notoriously tough inside the oil industry, and routine maintenance at the country’s aging oil fields is only getting harder. Now, greater odds that Iran will lash out through its powerful militia proxies in Iraq to stoke unrest could be the last straw.