Saturday, August 20, 2022

Baghdad

Oil fields development competition in Iraq heats up

 Oil fields development competition in Iraq heats up

Badra oil field in Iraq. Oil & Gas Middle East image.

Baghdad (IraqiNews.com) – The Iraqi government is trying to attract new and diverse investments in oil and energy sector as it seeks to increase the production, and develop the oil industry infrastructure, as part of its plan to export eight million barrels per day by the end of 2027, according to Sky News Arabia.

China is considered one of the most important buyers of Iraqi crude. Chinese governmental companies managed to establish a dominant position in terms of investments in the Iraqi oil sector, raising governmental concerns that Iraqi oil sector will be dominated by China, especially in the light of the fierce competition between Washington and Beijing.  

But the Iraqi government put an end to the Chinese investments in its major oil fields as it recently expressed reservations about the desire of Chinese companies to buy shares in its oil market, and instead, held talks to diversify investors in the field of oil and energy.

The Iraqi Minister of Oil, Ihsan Abdul-Jabbar Ismail, recently held talks with British and French officials in an attempt to secure more investments in the oil and energy sector.

Ismail announced that Iraq offered new plans to British Petroleum (BP) and Total to invest in the oil, gas and clean energy sectors.

A statement issued by the Ministry of Oil mentioned that Ismail recently held meetings in London and Paris with British Petroleum (BP), Total, and senior officials in the French ministries of energy and economy where he presented new investment plans in the oil, gas, and clean energy sectors.

“We have big projects, and our plans in the clean energy sector are ongoing. BP is one of Iraq’s most important partners, and it is ready to increase its investments in the clean energy sector, and our country is open to investments in this field,” Ismail said during his meeting with BP senior officials.

The Iraqi minister explained that Iraq signed contracts with the Norwegian company Scatec, the French company Total, the Chinese company Power China, the Emirati company Masdar and the Saudi company ACWA Power to implement clean energy projects, as Iraq intends to generate 20 percent of the country’s consumed energy from clean energy, according to Sky News Arabia.  

Ismail also discussed with Total CEO, Patrick Jean Pouyanné, programs and joint cooperation opportunities to implement projects in oil and energy sector.

Ismail and Pouyanné agreed on timings to implement joint projects such as a project to benefit from the associated gas in some oil fields in southern Iraq, a project related to solar power, a project to develop Ratawi oil field, and a project to transfer sea water to support production increase of oil fields.

Experts see that diverse companies operating in Iraq is an evidence that the country is still attracting international companies for more investments and partnerships.