The Ministry of Oil in Iraq announced on Tuesday that a new round of gas extraction licenses has begun, with an emphasis on the western areas.
In a news release, Iraq’s Deputy Prime Minister and Oil Minister, Hayan Abdul Ghani, stated that the country now uses just 60% of the gas that is produced. By contrast, around 40 percent of this gas is being burned.
Moreover, he revealed that all of the gas that was consumed had been contracted for investment with businesses, such as TotalEnergies, which generates 600 million cubic feet of gas—that is, three-quarters of the gas that is being burned.
Abdul Ghani claims that the Basra Gas Company has promised to make gas investments in West Qurna, Zubair, and Rumaila, three significant oil resources.
Iraq has contracted for the burnt gas “through exceptional efforts,” he clarified.
“Within 3 to 5 years, it will be capitalized on for electricity generation and other projects.”
April is the scheduled month for contract referrals, which will enable the extraction, processing, internal use, and substantial export of gas abroad.
According to “Oil and Gas” magazine, Iraq came in fifth place among Arab nations with the biggest reserves of natural gas in 2023; Qatar topped the list. Iraq has enormous oil and gas reserves, but there are several barriers in the way of its ambition to become a significant participant in the energy sector. Investors face an unstable environment due to political instability and security risks, and outdated infrastructure finds it difficult to support production and processing.
