Economy News – Baghdad
The Undersecretary of the Ministry of Oil for Extractive Affairs, Mohamed Khudair, has confirmed that Turkish authorities have officially communicated readiness at the “Jihan Port” to accept oil shipments. The inspection process for the crude oil export pipeline in the Kurdistan region, destined for this Turkish port, has reached completion.
In a recent interview, Khudair stated, “The Ministry of Oil has fulfilled all necessary obligations, and we are now waiting for confirmation from the region to set a date for oil exports at a rate of 185,000 barrels per day, with future export capacity determined by the federal budget mandates.”
He highlighted that the Iraqi parliament approved an amendment to the budget on February 2, which delineates the compensation structure for oil production and transportation costs in the Kurdistan region. This amendment also mandates the Kurdistan Regional Government to channel its oil production through the Iraqi Oil Marketing Company (SOMO), operated by the Federal Ministry of Oil.
On the subject of revitalizing and developing the four oil fields in Kirkuk, Khudair reported, “We have finalized the contract for the development of the Four Kirkuk Fields with the British company BP, which is currently under review by the consulting firm Kelvin Lines, with expectations to sign the final agreement shortly.”
He also noted that the North Oil Company of the Iraqi Ministry of Oil entered into an agreement with BP Petroleum on February 25 in Baghdad, which was attended by Prime Minister Mohammed Shia Al-Sudani, aimed at the rehabilitation and development of the Kirkuk oil fields.
Khudair elaborated that “the contract ensures the rehabilitation of four fields—Bay Hassan, Kirkuk (also known as Baba and Afana), Jumbour, and Khabbaz—with an expected production target of at least 420,000 barrels per day over the next two to three years, alongside an investment of 400 million standard cubic feet of associated gas, and 400 megawatts of power generation.”
BP has a long-standing history in the Kirkuk region, having been part of the Union of Oil Companies that discovered oil there in the 1920s. The British company estimates that the Kirkuk fields contain approximately 9 billion barrels of extractable oil.
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