Iraqi Oil Minister Hayyan Abdul Ghani has announced the initiation of several key gas investment projects, urging international firms to present competitive bids in the upcoming licensing rounds. He also indicated that the resumption of oil exports from the Kurdistan region via the Turkish Jihan pipeline is expected “within a week.”
During the opening of the Iraqi British Businessmen Forum in Baghdad, Abdul Ghani highlighted the Ministry’s current focus on significant gas investment projects. This includes a contract with the French company Total, aimed at producing 600 million cubic feet of gas in Basra Governorate, alongside an agreement with Baker Hughes to generate 200 million cubic feet of gas in Nasiriyah.
The Minister also noted the commencement of gas production operations at Hudakaz Al-Ghazi in Anbar Governorate, targeting a capacity of 400 million cubic feet. Additional projects are underway in the Al-Halfaya field in Maysan and in Mansourieh Governorate in Diyala, as part of the fifth licensing round for gas investment across several provinces.
These initiatives are part of Iraq’s broader strategy to meet domestic energy needs, particularly for powering electrical stations.
Abdul Ghani further invited international companies to submit proposals for new licensing rounds aimed at exploring and investing in various fields slated for future development in multiple Iraqi provinces.
In addition to these gas projects, the Ministry of Oil is advancing significant efforts to address refining necessities and to establish new pipelines for oil and gas exports.
On a related note, Abdul Ghani confirmed that discussions between Baghdad and Erbil are in the final stages, with the aim of commencing the “receiving and exporting of oil from the Kurdistan Region within a week.” This follows a prolonged period of disputes that had halted exports for nearly two years.
Previously, the Kurdistan Region was exporting approximately 450,000 barrels of oil daily through the Turkish port of Jihan without the consent of the federal government. However, these exports were suspended in March 2023 after an international arbitration ruling mandated that any oil from the region must be exported through the federal government oil company, SOMO.
Abdul Ghani stated, “We have reached an agreement with the region to receive at least 300,000 barrels per day from the region’s fields to be exported via the Turkish Jihan port.” He also mentioned that a delegation from Baghdad will travel to Erbil next Tuesday to negotiate a mechanism for managing oil utilization, following which the resumption of exports is anticipated within a week.
In early February, the Iraqi parliament ratified an amendment to the public budget, which aimed to resolve the dispute between the Kurdistan Region and the federal government regarding oil revenue sharing.
This amendment includes provisions for “compensation” to the Kurdistan Regional Government for the costs associated with oil production and its transfer to the federal government, as outlined in the official documentation.
Since the closure of the pipeline by Turkey in 2023, the Kurdistan Region has been unable to resume exports through the Turkish port of Jihan. This closure followed an arbitration court decision that ordered Turkey to pay approximately $1.5 billion in compensation to Baghdad for the unauthorized transport of oil from the region.
