Iraq taps Chinese consortium for Mansouriya gasfield development

Shafaq News/ Iraq's oil ministry has signed a preliminary deal with a Chinese consortium led by Jera to develop the Mansouriya gas field in Diyala province.

This move, according to an official statement, "aligns with the government's strategy to ramp up gas investment and achieve energy self-sufficiency." 

The deal, signed by the state-owned Midland Oil Company, brings Jera together with Petro Iraq, another Chinese firm. It follows a recent agreement to develop the Akkas gas field in al-Anbar.

"This deal strengthens our commitment to gas development," said Bassim Mohammed Khadir, the ministry's undersecretary for extraction affairs. "It complements our efforts to eliminate flared gas waste and maximize resource utilization."

The ministry is also focusing on monetizing existing discoveries through licensing rounds. The recent fifth and sixth rounds awarded exploration rights for 13 gas fields across ten Iraqi governorates.

Jera and Petro Iraq aim to achieve initial production of 100 million standard cubic feet per day (mmscfd) within 18 months at Mansouriya. Peak production of 300 mmscfd is expected within 4-5 years of finalizing the agreement.

Chinese energy companies have won bids to explore 10 Iraqi oil and gas fields during new licensing rounds, ahead of any other country.

Seven Chinese companies, including Sinopec, UEG, CNOOC Iraq, and Anton Oilfield, won 10 projects including eight oil fields and two with potential oil and gas reserves, while Iraq's KAR got three fields, the ministry said in a statement last week.

China has gained a major foothold in oil-rich and war-battered Iraq in recent years. It has also expanded its presence in the energy and construction sectors and become one of the largest importers of Iraqi crude. 

Iraq is also among the many partners in China's vast Belt and Road infrastructure initiative.

Under a 2019 "oil for construction" deal, building projects in Iraq are funded by the sale of 100,000 barrels per day of Iraqi oil to China.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves, among the largest in the world, amounting to 96 years' worth of production at the current rate.