Baghdad – WAA
Oil Minister Hayan Abdul Ghani announced today, Monday, that the efficiency of generating units has increased to more than 65% for combined cycles, while indicating that gas flaring will be completely stopped by the end of 2028, so that Iraq will be one of the countries that contribute greatly to reducing thermal emissions.
A statement by the ministry – received by the (INA) – said: “Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul-Ghani held a meeting with the American side in the presence of the US Assistant Secretary of State, the Director of the Institute, the President of the American Chamber of Commerce, and a number of companies, during his visit to the Baker Institute in the US state of Houston.”
The minister stressed, according to the statement, the “depth of cooperation with the American side,” referring to “twenty years of cooperation and partnership in various fields such as oil, energy, agriculture, trade, and business, and at the governmental and investment levels for both sides,” stressing “the importance of exchanging visions and ideas and reviewing joint opportunities that are in the interest of both countries.”
He pointed out that “the Iraqi delegation includes an elite group of specialists and decision-makers in technical, oil and investment affairs; for a new round of maturation of the previously drawn frameworks and to open new areas of cooperation and partnership between the two parties.”
He explained that “the Ministry of Oil is very interested in cooperating with American and Western European companies that wish to visit Iraq and will receive great attention from the Iraqi side. In return, the Iraqi side will work to send high-level delegations to visit the United States, after invitations are extended by solid companies; to discuss and examine the proposed projects to reach levels of strategic partnership that serve the common interests of all parties.”
The minister explained that “Iraq’s advanced position in the energy industry at the global and regional levels, which comes from its oil reserves of more than 145 billion barrels of explored oil, with a production capacity of more than five million barrels of oil, with a confirmed gas reserve of more than 130 trillion standard cubic feet and an expected reserve of more than 160 trillion cubic feet, makes it a major and influential player at the regional and global levels.”
He pointed out that “the ministry implemented gas investment projects that gave clear progress in gas investment from various fields. The percentage of invested gas did not exceed 51% of associated gas in 2022, as this percentage increased to more than 65% in the current year. This came from the implementation of many projects related to gas investment through cooperation with international companies and national efforts. Gas flaring will be completely stopped by the end of 2028 so that Iraq will be one of the countries that contribute greatly to reducing thermal emissions and benefiting from this energy and employing it towards generating electricity and various industries.”
He stressed that “in the refining sector, we are proud that we have recently added refining capacities exceeding 360 thousand barrels per day in the Karbala and North refineries and the fourth unit in the Basra refinery, in addition to supporting units distributed in other locations to suffice the country with a wide range of products that were included in the import basket. The ministry is now in the process of exporting some of them, especially gas oil,” indicating that “there are many gas exploration blocks with high and medium promise to contain large quantities of natural gas and are available for investment spread across Anbar and Nineveh provinces. Specialized American companies can contribute to investing in these blocks according to the mechanism adopted by the Iraqi Ministry of Oil, as some of these blocks contain very large quantities of natural gas with very high promise.”
The Minister continued, “We are also working in parallel on an updated economic model for partnership with the private sector in investing in gas in the Bin Omar field, which documents a new direction for the government and the ministry to involve the private sector more responsibly and effectively amidst a higher national vision to activate the fruitful and attractive partnership with the private sector, especially since the government has issued detailed instructions for partnership and investment patterns through Instructions No. 1 of 2024, which indicates the Iraqi legislator’s determination to diversify sources of project financing and give the private sector a broader and greater role,” noting that “the government is today adopting integrated projects to benefit from the added value of crude oil and gas production, as these projects include crude oil production, associated gas investment, electricity generation, establishing a refinery that is compatible with oil production, and establishing petrochemical and fertilizer factories to be integrated projects in all aspects that establish complementary industries that contribute to employing workers and provide job opportunities and multiple industries that allow the private sector to contribute to developing the national industry.”
The minister explained, “In the meeting, there are bold decisions to begin establishing the development road that links the south to the north and to sign memoranda of understanding with the Turkish, Emirati and Qatari sides in this regard, which will establish the development of free zones and various industries,” indicating that, “
In the field of electricity, the government has taken effective measures to develop the generation system by adding combined cycles to power generation stations with capacities exceeding 5,000 megawatts and reducing thermal emissions by increasing the efficiency of generation units from 35% for the simple cycle to more than 65% for the combined cycles, in addition to effective measures to develop the distribution system throughout Iraq.
At the end of the statement, the Minister of Oil pointed out that the Ministry of Electricity has taken practical measures to activate the system of importing and exchanging electricity with neighboring countries. Memoranda of Understanding have been signed in this field with the Hashemite Kingdom of Jordan, Turkey, the Kingdom of Saudi Arabia and other Gulf countries through the State of Kuwait. Measures are continuing to develop the electrical system to reach self-sufficiency, in addition to promising projects to generate electricity using solar energy.