Economy Updates – Baghdad
On Tuesday, Oil Minister Hayyan Abdel-Ghani announced that the Ministry of Oil is actively working to revitalize the Kirkuk oil fields and boost their production through a new agreement with Brech Petroleum. This contract is anticipated to yield three primary benefits: enhancing infrastructure, increasing gas production, and creating new job opportunities.
Abdel-Ghani elaborated that the Kirkuk fields have been experiencing a significant decline in production for a long time, as they are almost a century old. In collaboration with British Petroleum, the Ministry conducted a comprehensive study aimed at revitalizing these oil reservoirs and elevating production levels to over 450,000 barrels per day.
According to the minister, the agreement includes the provision of essential equipment and specialized materials necessary for maintaining high production sustainability. British Petroleum will supply these resources to ensure efficient operational continuity.
The agreement also focuses on augmenting gas production to exceed 400 million cubic feet per day, with an emphasis on sustainable investment in gas. Improvements to the North Gas Company’s facilities will enhance processing and production operations.
Moreover, the contract encompasses the establishment of a 400-megawatt electrical station, part of which will be allocated for operating oil and gas facilities, while the surplus will be integrated into the national grid to strengthen energy supplies.
The project is poised to generate numerous job opportunities for local communities near the oil fields and lay the groundwork for developing petrochemical industries and increasing the number of refineries, thereby augmenting the economic value of Iraq’s oil sector.
Recently, the Ministry of Oil announced the signing of a contract aimed at developing the four Kirkuk fields in collaboration with British Petroleum. Deputy Prime Minister for Energy Affairs and Oil Minister Hayyan Abdul-Ghani Al-Sawad stated that the contract represents the development of the Kirkuk fields, particularly those associated with the North Oil and North Gas Companies, including Kirkuk, Upana, Baba, Bay Hassan, Baksa, and Jambour.
The minister highlighted the government’s commitment to maximizing state resources from oil and gas, which is expected to positively impact the financial resources of the federal budget. He described the contract signing as a significant achievement, especially following a period of stagnation, stating that the rehabilitation efforts will boost national production and contribute to enhancing electric energy production through gas investment.
