Iraq Holds World's Largest Oil Reserves

May 20, 2008 10:56 a.m. EST

Baghdad, Iraq (AHN) - Iraqi oil production is now 350 billion barrels, a figure surpassing pre-war levels and Saudi Arabia's 264 billion barrels, Iraqi Deputy Prime Minister Burhum Saleh recently announced.

During Saddam Hussein's time, Iraq had an unofficial estimate of up to 525 billion barrels. The amount was kept secret due to fears oil companies would pressure for a U.S.-led invasion of the country, reports said.

At the recent World Economic Forum in Sharm el-Sheikh, Saleh said that Iraq has yet to ratify a national oil law that would liberalize and open foreign investment in the country's fledgling oil industry. He expressed frustration that Iraq is not able to profit from oil selling for more than $125 a barrel.

Saleh added that Iraq is currently producing 2.5 million oil barrels daily, with revenues of $70 billion this year.

Global oil giants BP, Exxon Mobil, Chevron, Royal Dutch Shell and Total have applied for permits to explore Iraq's reserves.