Baghdad signs 13 agreements to develop oil and gas fields
Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil announced on Wednesday that it signed 13 preliminary agreements to develop 13 oil and gas exploration blocks and fields.
The agreements are part of the supplementary fifth and sixth licensing rounds initiated by the Iraqi government to increase the country’s production of oil, and particularly gas, which Iraq needs to operate its power plants.
The Iraqi Minister of Oil, Hayan Abdul-Ghani, reaffirmed the ministry’s eagerness to increase oil and gas production by maximizing the utilization of available resources, according to a statement cited by the Iraqi News Agency (INA).
The agreements are expected to increase the country’s production of crude oil by 750,000 barrels per day and gas by 850,000 cubic feet per day, according to Abdul-Ghani.
The Iraqi Oil Minister indicated that these additional quantities will be used as fuel to operate power plants and, subsequently, support the energy sector in Iraq by generating electricity.
Iraq currently generates a little over 27,000 megawatts of electricity, but it requires 48,000 megawatts to cover its own demands, according to figures recently disclosed by Ahmed Musa, the Ministry of Electricity’s spokesperson.
80 percent of Iraq’s power plants run on gas, some of which is imported from Iran on a five-year deal, providing 50 million cubic meters of gas every day, according to Musa.
Iraq heavily relies on gas imports from Iran but has recently invested in many projects to start taking advantage of flared gas and using renewable energy to generate electricity.
Gas imports from Iran are extremely important for Iraq to generate electricity. However, US sanctions imposed on Iran make it difficult for Baghdad to pay for the Iranian gas.
Iraq witnesses daily power outages that may last up to 10 hours, but things worsen during the scorching summer when the temperature exceeds 50 degrees Celsius (122 degrees Fahrenheit).
The Iraqi Minister of Electricity, Ziyad Ali Fadel, announced in mid-March that an agreement had been signed with Siemens Energy to turn flared gas into fuel within six months.
Fadel confirmed that the agreement is part of the efforts of the Iraqi government to stop gas flaring and use it to generate electricity.
https://www.iraqinews.com/iraq/baghdad-signs-13-agreements-to-develop-oil-and-gas-fields/
ANALYSIS
Baghdad has recently signed 13 preliminary agreements aimed at developing oil and gas exploration blocks and fields. This move is part of Iraq's broader strategy to boost its oil and gas production capabilities. The agreements are expected to enhance crude oil output by 750,000 barrels per day and increase gas production by 850,000 cubic feet per day.
Iraq’s energy sector has been struggling with significant power shortages. Currently, the country generates about 27,000 megawatts of electricity but needs 48,000 megawatts to meet its demand. About 80% of Iraq’s power plants rely on gas, much of which is imported from Iran. However, due to US sanctions on Iran, payments for this gas have become complicated.
In response to these challenges, Iraq is investing in projects to utilize flared gas and explore renewable energy sources. Notably, an agreement with Siemens Energy aims to convert flared gas into usable fuel within six months. This initiative is part of Iraq's broader effort to mitigate gas flaring and improve electricity generation capabilities.