Baghdad: Oil Minister Bassem Mohammed Khudair confirmed on Saturday that the ministry is proceeding with the implementation of the government program plans so that Iraq can take the lead in energy production, while indicating that the government has a vision to end the issue of flared gas.
According to Iraqi News Agency, the Minister of Oil stated in a press conference that "despite the challenges and problems related to the Strait of Hormuz, the Ministry has managed to secure petroleum products for citizens," noting that the Ministry is working around the clock in accordance with the Prime Minister's directives."
He added that "the Ministry is striving to develop the oil industry, increase production and exports, and build infrastructure, as well as increase investments and attract international companies to invest in oil and gas optimally," pointing out that "Iraq needs to build advanced infrastructure after the country has endured fifty lean years of wars and terrorism."
He affirmed that "the government is proceeding with its program and is determined to ensure Iraq assumes a leading role, which will positively impact the economic and living conditions," noting that "the ministry's exploration teams are conducting surveys in several governorates to replenish depleted reserves."
He explained that "the ministry is working on two parallel tracks regarding the gas sector: first, eliminating the issue of flared gas, and second, developing gas fields," adding that "Iraq spends significant sums on gas, and therefore we are working to develop it, having awarded 14 contracts to international companies for this purpose."
He noted that "the ministry is also working to develop export infrastructure," emphasizing that "the recent visit to the United States represents a new chapter in cooperation with international companies, and the presence of American companies in Iraq reflects the attractiveness of the country's investment environment."
He added that "international companies are capable of training Iraqi personnel and contributing to infrastructure development, as well as attracting a large workforce," explaining that "the ministry signed memoranda of understanding and contracts comprising seven articles, including two contracts for developing contracts and investing in associated oil and gas, in addition to signing an addendum to the agreement concerning Qurna-2, the Nasiriyah project, and the four blocks."
He noted the signing of three memoranda of understanding with American companies, explaining that these memoranda would unlock significant investment opportunities, and that there was also a step related to the export project via Aqaba.
He stated that Iraq exported approximately 3.4 million barrels per day through the Strait of Hormuz before the war, but that export volumes through this route decreased after the war, emphasizing the need to find future solutions to diversify export routes.
He clarified that the Basra-Fishkhabur pipeline project would be constructed under a Build-Operate-Transfer (BOT) model, with a company undertaking its construction and operation as an investment, He indicated that current oil exports could not reach previous levels, but that exports could be restored to their previous levels after the war ended.
He affirmed that "all oil fields are ready to resume exports to their previous levels," explaining that "the government is working to ensure a safe environment for companies."
Regarding the oil agreement with Turkey, the minister stated that "the agreement was renewed and included specific conditions, while Turkey proposed limiting it to oil transport and Iraq's participation in certain projects," noting that "the planned quantity of 700,000 barrels cannot be supplied through Kirkuk."
Regarding the oil and gas sector in the Kurdistan Region, the Minister of Oil affirmed that "there is a tripartite agreement between the federal government, the region, and the oil companies, and it can be amended through negotiation," emphasizing that the ministry "does not differentiate between citizens in Kurdistan and any citizen in any other province."
He added that "the region's situation requires extensive dialogue," stressing "the importance of continuing negotiations to reach solutions that serve the national interest."
He further stated that "one of the Ministry of Oil's objectives is to locate storage facilities in some countries, and there is ongoing dialogue and work on this matter," adding that "Iraq currently produces 2.7 million barrels per day and exports between 1.5 and 1.7 million barrels per day."