Iraq Oil Minister: US Companies Pillar of Iraq Oil and Gas Sector
Iraq’s oil minister says American companies are a key pillar for developing the oil and gas sector, as talks with three US firms aim for final contracts.
ERBIL (Kurdistan24) - American companies are a fundamental pillar in developing Iraq’s oil and gas industry, Oil Minister Basim Mohammed Khudair said on early Saturday, disclosing that the ministry is negotiating with three major US oil companies to reach the final contracting stage.
Speaking to Iraqiya News, as monitored by the Iraqi News Agency (INA), Khudair said the negotiations with the three American firms are part of a wider push to expand the country’s energy capacity.
“The ministry has an ambitious strategy for the coming years, in line with government plans to increase oil and gas production capacity, with a focus on ending the flared gas file and providing additional quantities of gas to achieve self-sufficiency and secure energy needs,” he said.
Khudair described the project to develop four Kirkuk fields with British energy company BP as one of the important ones. “The contract has been signed and activated, and operations have moved from the North Oil Company and North Gas Company to the joint operating authority across the four fields,” he said.
He then set out the project’s targets. “The project aims to raise oil production to about 450,000 barrels per day, in addition to providing 500 million standard cubic feet of gas, within the government’s plan to increase production and develop the oil and gas sector,” he said.
The minister said the project has other goals alongside higher output. “The project includes other objectives in parallel with increasing production, most notably training engineering, technical, administrative, auditing, and financial cadres, and preparing them to achieve optimal management of oil and gas across Iraqi fields,” he said.
He added that the project will also create community projects to serve residents of the areas around the fields, bring in Iraqi local companies, and put labor to work. According to Khudair, these steps will help bring about an economic shift in Kirkuk province, as part of state projects to develop the oil industry and strengthen Iraq’s standing among oil-producing countries.
On the province’s share of jobs and service projects, Khudair said all projects linked to developing the fields will be built inside Kirkuk province to serve the people of the surrounding areas. He stressed that employment priority will go to Kirkuk’s young people, including engineers, technicians, and other specialists.
Khudair had previously stated that working with BP on the four Kirkuk fields sends a message about Iraq’s investment climate. “Working with British Petroleum on developing the four Kirkuk fields sends a message that the investment environment in Iraq is safe, stable, and attractive to global companies,” he said.