Baghdad: The Ministry of Oil announced today the signing of a memorandum of principles between North Oil Company and the American firm HKN for the development of the Hamrin oil field in Kirkuk province. The agreement was signed in the presence of Iraqi officials and U.S. diplomats.

According to National Iraqi News Agency, Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdulghani, emphasized the ministry’s commitment to collaborating with reputable American and international companies to enhance oil field development and optimize associated gas investment to support the national economy.

Abdulghani explained that the goal of the agreement is to increase production rates at the Hamrin field to 60,000 barrels per day, alongside utilizing 45 to 50 million standard cubic feet of associated gas to fuel power generation stations. He noted the current production of the field stands at 20,000 to 25,000 barrels per day, despite ongoing security and economic challenges.

The minister expressed Iraq’s desire to expand joint efforts with American companies, indicating ongoing discussions with various firms to invest in the oil, gas, and energy sectors.

Stephen Fagin, Charg© d’Affaires at the U.S. Embassy in Baghdad, conveyed his satisfaction with attending the signing ceremony, highlighting his country’s focus on enhancing economic cooperation with Iraq and increasing American investments in the energy sector.

Amer Khalil, Director General of the North Oil Company, mentioned that the agreement lays the groundwork for a future comprehensive development contract, which will include the rehabilitation of oil wells and capacity building for local staff. He noted the project’s potential to secure gas supplies for power stations and provide employment opportunities for Iraqi workers.

Matthew Zeiss, Vice President of HKN, expressed pride in partnering with the Ministry of Oil, affirming their dedication to fully developing the Hamrin field while employing at least 80% Iraqi workforce and contributing to the local community development in the area of the project.