Chinese co. win 5 contracts to explore Iraqi oil, gas fields: Reuters
3 Min Read
European, Chinese, Arab, and Iraqi groups are part of more than 20 companies qualified for the licensing round for 29 oil and gas fields in Iraq.
-
Smoke and steam rise from a coal processing plant in Hejin in central China's Shanxi Province on Nov. 28, 2019 (AP)
Chinese companies now have contracts to explore five Iraqi oil and gas fields in the licensing round whose main goal is to increase gas production for domestic use, Reuters reported today.
Two of the 29 projects on offer in the three-day licensing round located in central, southern, and western Iraq were also won by an Iraqi company.
European, Chinese, Arab, and Iraqi groups are part of more than 20 companies qualified for the licensing round, however, it was evident that no major US oil companies took part.
The Chinese and Iraqi winners
The Chungman Oil and Natural Gas Group won the development of East Baghdad Field, Northern Extensions in the capital, and the Middle Euphrates Field between the southern provinces of Najaf and Karbala, the Iraqi Ministry of Oil said.
In addition, the Chinese United Energy group won the investment in al-Faw field in Basra, south of Iraq and the Zhenhua Company won the development of the al-Qarnain field on the border between Iraq and Saudi Arabia.
The Chinese company Geo-Jade also won the development of the Zurbatiyah field in Wasit Governorate.
The Iraqi Khaled Abdul Rahim Group secured two investments, the Dima field in the Maysan Governate in the east of the country and the Sasan and Alan fields in the Nineveh Governate in southwestern Iraq, the ministry announced.
20 other projects will be up for bidding on May 12 and 13.
Oil production and self-sufficiency on gas
Advisor to the Iraqi Prime Minister for Energy Economics Farah Al-Amiri said that the government's goal is that these new projects would increase oil production to six million barrels per day by 2030 from about 5 million at the moment.
The Iraqi government is also aiming to become self-sufficient in natural gas through these projects and stop imports with plans to stop gas flaring completely by 2030, Reuters reported.
Speaking with Reuters, al-Amiri said that as Iraq's goal is currently self-sufficiency, it is too early to address gas exports.
160+ bn barrels set by Iraq as oil reserves target: Iraqi Oil Minister
Iraqi Oil Minister Hayyan Abdul Ghani said today during the launch of new licensing rounds for 29 oil and gas fields that "The ministry has put forward 29 promising projects today."
"We hope to announce an increase of Iraq's proven oil reserves to more than 160 billion barrels", he added.
The winning companies will be supported and aided by the government, Abdul Ghani said.
Fields and exploration blocs in 12 provinces and an offshore bloc, the first to be delved into in Iraqi water territories in the Gulf, are part of these new rounds.
Iraq is also aiming for these blocs to cause an increase in natural gas production as the Prime Minister's media office said in a statement that "Iraq anticipates deriving more than 3,459 million standard cubic feet of gas per day (98 million cubic meters) and over one million barrels of oil per day from these licensing rounds."
