Iraqi Oil Ministry to sign new contracts for associated gas investment

Shafaq News / The Iraqi Ministry of Oil is planning to enter into further investment contracts for associated gas projects in five governorates and other cities across the country.

This was announced by Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdul Ghani, on the occasion of the first anniversary of the formation of the current federal government under the leadership of Prime Minister Mohammed Shia Al Sudani.

Abdul Ghani stated, "The government has shown exceptional interest in the oil and energy sector, and its decisions have been marked by boldness and foresight that achieves steps in the development and growth of the oil industry. This includes the decision to activate the contracts of the fifth licensing round and the conclusion of contracts with the winning companies in February of this year, which are expected to add about 1000 million standard cubic feet of gas and more than 250,000 barrels of crude oil."

"In addition, the Ministry is announcing the fifth "supplemental" and sixth oil and gas licensing rounds, aimed at enhancing the optimal investment opportunities for the national wealth of oil and gas resources in 30 sites. It is expected that these will add significant amounts of oil and gas to the national oil reserve and production."

He also emphasized the importance of the government's decision to conclude a package of contracts with TotalEnergies, "These contracts contribute to promoting the oil and energy industry, strengthening infrastructure, and renewable energy. They include a contract for the sea water treatment project to provide potable water to support the internal needs of oil fields with a capacity of five million barrels per day. This will directly contribute to sustaining and increasing national crude oil production. Additionally, the investment contract for associated gas (4-5) in oil fields with a capacity of 600 million cubic feet, which represents a qualitative addition to the gas and environmental sector, as it will enhance national production."

He further explained that "the government's economic program includes a strategy that focuses on the importance of investing in associated gas to increase national production. The Ministry is working on new gas investment projects to achieve a full investment of the available quantities of the national wealth."

Regarding achievements in the refining sector, the Minister highlighted the operation of the Karbala refinery with a refining capacity of 140,000 barrels per day, which is an important step to cover a large part of the local need and to produce high-quality petroleum products, reducing the quantities of imported fuel. He praised the efforts of the South Refineries Company in implementing several projects to increase production and refining capacity and improve the quality of fuels, as well as the reconstruction of the Baiji refinery with national effort, an important step to promote national production of petroleum products.

The Deputy Prime Minister stressed the government's efforts and the Ministry's role in enhancing infrastructure projects and increasing export capabilities from the southern port. He also highlighted the Ministry's focus on renewable energy projects, environmental conservation, and contributing effectively to OPEC+ to stabilize global markets. He commended the government and the Ministry for achieving financial revenues for the state treasury and the distinguished contribution of the Ministry of Oil in enhancing and stabilizing electricity in all of Iraq.