Economic Insights – Baghdad
In a significant development for Iraq’s oil sector, the country confirmed the acquisition of three substantial oil deals during February.
As reported by a specialized energy platform based in Washington, D.C., the oil transactions encompassed various agreements related to the export, sale, and purchase of crude oil, as well as acquisitions in projects and the establishment of large-scale endeavors.
The most notable of these agreements was established between Iraq’s “North Oil” company and the international oil powerhouse “BP.” This agreement focuses on the development of oil reserves estimated at approximately nine billion barrels, which span four promising fields in Kirkuk.
The Iraqi Ministry of Oil indicated that these contracts for developing the Kirkuk oil and gas fields followed negotiations on technical issues and contractual terms, as structured within the economic model of the project. Key discussions occurred in London, culminating in memoranda of understanding signed on January 15.
The second agreement involves two contracts entered into by the “Basra Oil” company with American firm “Halliburton,” aimed at developing the Ben Omar River field and the Sinbad field.
According to these new agreements, the initial phase will involve evaluation efforts to prepare for targeted production goals and to maximize resource investment efficiency. Baghdad will provide relevant data and information concerning the two fields to Halliburton, which will aid in forming the appropriate technical and economic models for enhanced production and associated gas investment.
The development strategy from this critical agreement includes in-depth studies on both the Bin Omar and Sinbad River fields, with plans to increase production from 45,000 barrels per day to 300,000 barrels per day, significantly contributing to Iraq’s overall crude oil output.
The third agreement focuses on incorporating artificial intelligence technology in the eastern Baghdad field, one of the largest oil reserves in the country. The project, signed by the Iraqi Oil Company with Chinese firm “SBS,” aims to implement AI systems to monitor wells in this extensive field, which stretches over 120 kilometers in length and 5 to 7 kilometers in width.
This arrangement will deploy the “Deep S1” AI system to enhance extraction efficiency and reduce fault response time. Notably, this technology offers continuous monitoring capabilities, allowing issues to be identified within minutes, thus facilitating quicker risk assessment and improving operational performance across the eastern Baghdad field. Additionally, it enables seamless data integration and analysis accessible via smartphones.
