Baghdad: The Ministry of Oil has announced progress in negotiations with Turkey concerning a long-term gas contract, alongside advancements in associated gas investment operations.

According to National Iraqi News Agency, Undersecretary of the Ministry of Oil for Gas Affairs, Izzat Sabir Ismail, highlighted that the current oil contract with Turkey is set to expire in June 2026. Both parties have expressed no objections to either signing a new contract or extending the existing one for the upcoming years.

The Ministry of Oil has tasked relevant authorities with negotiating the terms of a new contract or the extension of the current 50-year agreement, which will conclude in June of the following year. Ismail emphasized the importance of these negotiations as they continue to unfold with the Turkish side.

In terms of associated gas investment, Ismail noted that significant progress has been made. “In previous years, associated gas investment operations were at a rate of 50% with another 50% flaring. Currently, 70% of associated gas is being invested, with only 30% being flared,” he stated.

Iraq’s commitment to reducing associated gas flaring aligns with an international agreement signed in Paris in 2015, aiming for zero flaring by 2030. The Ministry is striving to achieve full investment in associated gas by 2029. Ismail explained that each percentage increase in gas investment translates into one billion dollars in revenue for Iraq, highlighting the economic significance of reducing flaring activities which have persisted for nearly 90 years in fields such as Kirkuk, Baba Gurgur, and Bai Hassan.