Soon... Indications of an Oil Discovery in Iraq
Positive indicators are increasing that strengthen the chances of announcing a new oil discovery in southern Iraq, amid active government moves to activate the latest licensing rounds and expand the scope of investment in exploration blocks, which will contribute to raising the country's production capacity in the short and medium term.
According to a statement reviewed by the Washington-based Energy Platform, the Joint Management Committee for the seventh exploration block held its first meeting on Wednesday, April 23, 2025, headed by the Director of the Wasit Oil Authority, Engineer Ahmed Mahdi Sabri, and attended by officials from the Chinese company CNOOC, to which the block was awarded as part of the fifth and sixth supplementary licensing rounds.
This meeting is seen as a first step towards a project that could lead to a confirmed oil discovery in one of the richest potential hydrocarbon reserves.
During the meeting, it was agreed to approve the work program and operating budget for 2025, in addition to affirming the joint commitment to implementing global best practices in exploration and development.
Oil discovery site
According to technical assessments conducted by the operating company, Block 7 shows strong initial indications of promising oil reserves.
The geographic scope of the block includes the governorates of Diwaniyah, Hillah, Muthanna, Wasit, and Najaf, giving the project a strategic dimension, particularly as CNOOC intends to adopt advanced technologies that will contribute to enhancing the chances of a highly economically viable oil discovery.
It's worth noting that this move comes as part of the Iraqi Ministry of Oil's efforts to revitalize recently signed licensing contracts, in line with the goals of the government's program and the state's vision to promote comprehensive development.
Oil exploration in Iraq
Iraq's oil exploration portfolio is witnessing a significant shift. On October 27, 2024, the Ministry of Oil signed the final contracts for the latest licensing rounds, in the presence of Oil Minister Hayan Abdul-Ghani. Abdul-Ghani announced that these agreements will contribute to the addition of 750,000 barrels per day of crude oil, in addition to the production of 850 million standard cubic feet of gas per day.
The minister affirmed that the ministry has ambitious plans to develop new exploration blocks, which constitute a pivotal part of Iraq's oil exploration strategy for the next phase.
The contracts cover vast areas, including the Al-Faw, Jabal Sanam, Sumer, Adan, and Abu Khaima fields, in addition to the Al-Khulaisiyah and Middle Euphrates fields, enhancing the geographical diversity of investment opportunities.
Through these tours, the ministry seeks to attract quality investments that will secure the fuel needed for power plants and manufacturing industries, and open up broad prospects for employing Iraqi personnel, making oil exploration in Iraq an extremely important development tool.
Production challenges and international commitments
In contrast, the Iraqi government is still required to reconcile its investment expansion with its international obligations under the OPEC+ alliance.
In April, Baghdad announced its commitment to reduce oil production by 120,000 barrels per day, with the reduction set to increase to 140,000 barrels in May and June to compensate for production overruns over the past year.
During the Sulaymaniyah Forum on April 16, 2025, the Oil Minister stated that Iraq is seeking to persuade OPEC to increase its production quota, at a time when the market is witnessing increasing pressure to control supplies.
Abdul Ghani indicated that his country intends to extend exclusive invitations to American companies, such as Exxon Mobil and Chevron, to strengthen their presence in oil exploration projects in Iraq. link
