Iraq inks six oil & gas development agreements
Business
UAE’s company Crescent Petroleum and two Chinese businesses will participate in natural gas supply
BAGHDAD (Reuters) - Iraq inked agreements for the development of six oil and gas fields with the United Arab Emirates (UAE) company Crescent Petroleum and two Chinese businesses in an effort to supply the much-needed natural gas for power plants and reduce the budget-burdening imports.
Crescent Petroleum secured three 20-year contracts to develop oil and gas reserves in the Iraqi provinces of Basra and Diyala. The Diyala Gilabat-Qumar and Khashim fields, which have contracts with Crescent Petroleum, are anticipated to start producing 250 million standard cubic feet of natural gas per day within 18 months.
Crescent Petroleum will also investigate and develop for oil and gas in Basra province’s third block Khider Al-Mai.
China's Geo-Jade also inked two contracts for the exploration and development of the oil fields in Iraq at Huwaiza in the south and Naft Khana, both of which are close to the Iranian border. A deal was made by the Chinese oil and gas business United Energy Group Ltd. to develop the Sindbad oilfield close to Basra.
Iraq's Oil Minister Hayan Abdel-Ghani stated that the country expected the new agreements to contribute to the production of more than 800 million standard cubic feet per day (mcf/d) of natural gas. He was addressing at the signing ceremony on Tuesday which was attended by Prime Minister Mohammed al-Sudani as well.
The import of Iranian gas is a major source of energy for the OPEC nation.
Ghani stated that Iraq intended to start a fresh round of bidding in an effort to increase gas output. The new round would contain exploration blocks in the north, center and west of the nation, he added.
