Iraq to double gas output at war-damaged field
Iraq has awarded a 25-year contract to a local company to more than double gas production at an oilfield badly damaged by Islamic State (IS) militants nearly a decade ago.
Gas from the Ajeel field in north-central Saladin province will feed power facilities in the Opec member country, which has been heavily reliant on Iranian gas.
Prime Minister Ali Al-Zaidi oversaw the signing of the contract with Kar Electrical Power Production Trading in Baghdad before departing on his first state visit to France and Germany.
Iraq has partially rehabilitated the Ajeel field since IS forces were ejected from Saladin, but it has continued to operate well below capacity.
The contract will raise gas output from 135 million cubic feet per day (cf/d) to 300 million cf/d and increase oil production from 30,000 barrels per day (bpd) to 40,000 bpd, Al-Zaidi’s office said.
Iraq, which controls the world’s fifth-largest recoverable oil deposits, has recently signed deals with several US companies to increase its oil and gas production.
Last week it said oil production had reached pre-war levels.
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The Arab country has set a target to end the long-standing practice of gas flaring by 2029 and become self-sufficient in natural gas. It aims to phase out imports from nearby Iran after a sharp fall in supplies over the past two years.
Iraq plans to generate 12,000 megawatts from renewable sources by 2030, aiming to ease pressure on the national grid, according to the electricity ministry.
On peak summer days, demand may reach more than 55,000 megawatts while supply remains substantially lower, highlighting the urgent need for new solutions.