Iraq Aims for Gas Self-Sufficiency, Plans Licensing Rounds to Boost Production

Shafaq News/ Iraq's Oil Minister, Hayan Abdul-Ghani, announced on Thursday that the ministry is working towards achieving self-sufficiency in gas production within the next five years. The plan includes offering two licensing rounds to explore oil and gas fields in the country.

Speaking to WAM Agency on the sidelines of the eighth international OPEC conference in Vienna, Abdul-Ghani revealed that the first licensing round will focus on over ten oil and gas fields in western Iraq. In comparison, the second round will cover 13 fields and exploratory sites along the western borders. These initiatives are expected to enable Iraq to produce over 1.5 billion cubic feet of gas.

Highlighting Iraq's significant energy reserves, Abdul-Ghani stated that the country possesses vast reserves of 144.5 billion cubic meters of oil and over 133 trillion standard cubic feet of gas.

The minister also mentioned key partnerships with international companies to develop major oil fields.

The Rumaila field, in collaboration with BP, currently produces 1.38 million barrels of oil per day, along with substantial quantities of associated gas. Additionally, contracts with Eni, Exxon Mobil, and Lukoil have been established to develop the Zubair oil field and West Qurna 1, which collectively contribute hundreds of thousands of barrels of oil per day.

Abdul-Ghani emphasized that Iraq's current oil production capacity stands at 5.4 million barrels per day, intending to raise it to 6 million per day through licensing contracts with companies soon.

Addressing the significant contribution of oil and gas to Iraq's GDP, the minister acknowledged that 90% of the country's imports rely on oil revenues.

In line with global efforts to reduce carbon emissions, Abdul-Ghani highlighted Iraq's focus on investing in natural gas as a clean energy source. He mentioned the Basra Gas company, a joint alliance including Southern Gas, Shell, and Mitsubishi, which has successfully implemented projects, such as the Basra NGL project, with a capacity of 400 million cubic feet of gas.

Abdul-Ghani also revealed investments in five oil fields: Majnoon, West Qurna 2, Luhais, Al-Toba, and Al-Sabbah. These are expected to provide an additional 600 million cubic feet of gas to meet the growing electricity demand.