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By Simon Watkins, for OilPrice.com. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Why The U.S. Is Racing To Lock Down Iraq's Most Explosive Geopolitical Gas Prize

Sharing its eastern border with Iran, its northern border with Turkey, its western border with Syria and Jordan, and its southern border with Saudi Arabia, Iraq is arguably the single most geopolitically important country to the U.S., China, and Russia in the entire Middle East.

In turn, the lawless western desert province of Anbar is perhaps the most geopolitically vital area in Iraq, and the most strategically important asset in Anbar is the huge Akkas gas field.

With the new Iraqi Prime Minister, Ali al-Zaidi, having taken office on 16 May and showing every sign of being open to new Western energy initiatives across the country, U.S. firms have positioned themselves centre-stage to take control of the Akkas field's development.

So, what are their key objectives here and how do they aim to achieve them?

Click here to read the full article.

By John Lee.

Iraq's Ministry of Oil has announced a long-term plan to raise production at the Akkas gas field to 400 million standard cubic feet per day (MMscfd), with an interim target of 143 MMscfd by mid-2027. A meeting with a delegation from US company ConocoPhillips is expected in Baghdad to discuss implementation of an agreement signed between the Iraqi government and the company through the Ministry of Oil in the United States.

Mohammed Yassin Hassan, Director General of Midland Oil Company (MdOC), told the state-run Iraqi News Agency (INA) that the field currently produces 43 MMscfd under a national effort following severe damage caused by ISIS in 2014. An existing contract with SLB (formerly Schlumberger) covers the drilling of six wells and the construction of a processing facility with a capacity of 100 MMscfd, which is ongoing. Hassan said the first 100 MMscfd increment could be completed by mid-2027, bringing total output to 143 MMscfd.

The 400 MMscfd target is described as a long-term ambition, with a strategy to be developed in coordination with the new investor. Hassan said the plan is to achieve this before the end of 2030.

(Source: Iraqi News Agency)

By John Lee.

The Iraqi Minister of Oil has been authorised to sign a memoranda of understanding (MoU) with a consortium comprising US-based companies ConocoPhillips, TI Capital and Novaterra Energy.

Cabinet approved the agreement, which involves assessing the exploration and development potential at the Akkas gas field (pictured) in western Iraq, and surrounding areas.

Earlier this month, ConocoPhillips has agreed to acquire a 42% interest in BP Energy Company of Kirkuk Limited (BP ECKL) from BP, supporting the redevelopment of four producing oil fields in the Kirkuk area of northern Iraq.

(Source: Prime Minister's Office)

By John Lee.

Drilling operations have begun at the Akkas gas field in Anbar province as part of efforts to expand domestic gas production and support power generation.

The project has entered an initial fast-track production phase with capacity of 100 million standard cubic feet of gas per day, with subsequent phases planned to raise output to a target of 400 million standard cubic feet per day.

The field is expected to play a strategic role in supplying nationally produced gas to the energy sector, including fuel for the Anbar combined-cycle power plant and the Akkas power station, while also supporting the national economy and employment.

The development of the field is being carried out by Midland Oil Company in cooperation with Schlumberger of the United States, under the Ministry of Oil's plans to strengthen investment in the gas sector and reduce reliance on imports.

(Source: Ministry of Oil)

By John Lee.

Ukrzemresurs LLC, a Ukrainian gas producer and operator of the Akkas gas field in Iraq since 24 April 2024, has announced that it has filed a claim with the International Court of Arbitration of the International Chamber of Commerce (ICC) to protect its rights as operator and investor under the Gas Development and Production Service Contract for the Akkas contract area with, among others, the Midland Oil Company.

The company stated that it has consistently fulfilled its contractual obligations and made significant investments in the project since the agreement was established. However, Ukrzemresurs said it had "no choice but to commence arbitral proceedings" following alleged breaches by its counterparties, including what it described as the wrongful termination of the contractual arrangements.

According to the statement, the situation escalated with the seizure of Ukrzemresurs' field camp and property "by armed force without prior notification and legal grounds," which the company considers a serious violation of its rights and investments in Iraq.

Full statement from Ukrzemresurs:

Ukrzemresurs LLC, an Ukrainian gas producer and operator of the Akkas gas field in Iraq since 24 April 2024, announces that it has filed a claim with the International Court of Arbitration of the International Chamber of Commerce (ICC) to protect its rights as operator and investor under the Gas Development and Production Service Contract for the Akkas contract area with, among others, the Midland Oil Company.

Ukrzemresurs has worked consistently and diligently since the aforementioned agreement was put in place, including making a number of significant investments into the project.

Unfortunately, however, it now has had no choice but to commence arbitral proceeding following breaches of the agreements by its counterparties, including, notably a wrongful alleged termination of the contractual arrangements, and an absence of desire on the part of the counterparties to resolve the dispute culminating recently in the seizure of Ukrzemresurs' field camp and property by armed force without prior notification and legal grounds. Such actions amount to a serious violation of Ukrzemresurs' rights in relation to its significant investments in Iraq.

Ukrzemresurs regrets this development, which hinders the implementation of a strategically important project for Iraq. although as always it remains available for constructive and good faith discussions with the aim of resolving the dispute amicably.

(Source: Ukrzemresurs)

By John Lee.

The Iraqi Cabinet has authorised the Ministry of Electricity to sign an addendum with China's SEPCOIII [Electric Power Construction Corporation] for the construction of a dry gas pipeline supplying the Anbar Combined-Cycle Power Plant.

The project involves a 250-kilometre pipeline, with the new addendum covering the construction of the section from the Akkas gas field to the T1 station.

According to a statement from the Prime Minister's Office, the decision forms part of Iraq's efforts to expand energy infrastructure and secure fuel supplies for power generation.

(Source: PMO)

By John Lee.

The Ministry of Oil has signed a contract with US-based Schlumberger (SLB) to increase natural gas production at the Akkas gas field in Anbar province.

Speaking at the signing ceremony, Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul Ghani, described the project as a major milestone in Iraq's gas development strategy. He confirmed that Midland Oil Company has been tasked with overseeing the implementation of the project, which targets increasing production at the field to 100 million standard cubic feet per day (mmscfd).

The new contract follows the cancellation of a previous agreement with the Ukrainian company Ukrzemresurs. Minister Abdul Ghani said the project will include:

Drilling new wells by Schlumberger;

• A forthcoming contract for the construction of surface facilities;
• A parallel contract with the State Company for Oil Projects (SCOP) to build a pipeline network linking wells to central processing units.
• The gas produced will be directed to the Anbar Combined Cycle Power Plant, currently under construction by the Ministry of Electricity.

The Minister stressed the urgency of delivering the project on schedule, noting that the initial 60 mmscfd addition will bring the total processed volume to 100 mmscfd out of an expected full capacity of 400 mmscfd.

Gokhan Yarim, President of Integrated Projects at Schlumberger, expressed satisfaction at signing the agreement and affirmed the company's commitment to the project timeline.

Deputy Oil Minister for Extraction, Bassem Mohammed Khudair, said the deal reflects Iraq's commitment to ending gas flaring, expanding domestic gas production, and providing a secure investment environment in Anbar. He highlighted the project as a key step in the ministry's strategy to develop gas fields like Akkas and Mansouriya through national efforts, supported by international expertise.

Mohammed Yaseen, Director General of Midland Oil Company, emphasised the strategic and economic dimensions of the project, noting the use of a new economic model and a more direct role for service companies.

(Source: Ministry of Oil)

By John Lee.

As part of Iraq's government-backed gas development programme, the Ministry of Oil has reported significant progress in reducing gas flaring and increasing gas utilisation.

It says the Ministry has raised associated gas capture from 53% to 70%, and dry gas production from 1,300 to 1,800 million standard cubic feet per day (mmscfd).

Key projects already completed or underway include:

• Halfaya Gas Project (Missan): 300 mmscfd
• Basra Gas Company (BGC) (BNGL1 and BNGL2): 200 mmscfd each
• Artawi [Ratawi] Gas Project (TotalEnergies contract): 600 mmscfd
• Faihaa Field Gas Project: 130 mmscfd
• Nahr Bin Umar Field (Basra): 300 mmscfd
• Gharraf and Nassiriya Fields: 200 mmscfd
• Akkas Gas Field (Anbar): 40 mmscfd
• Accelerated Artawi Project: 50 mmscfd

The government aims to end routine flaring by 2028 and increase gas output to 3,000 mmscfd by 2030, aligning with Iraq's environmental commitments under the 2016 Paris Agreement.

In liquefied petroleum gas (LPG), production rose from 2 million tonnes in 2024 to 3 million tonnes in 2025. Exports also surged from 250,000 tonnes in 2023 to 1 million tonnes in 2025. LPG systems were installed in over 41,000 homes and more than 38,000 vehicles.

To expand storage capacity, the Ministry completed 8 of 16 spherical LPG tanks, each with a 3,000-cubic-metre capacity, adding 24,000 cubic metres overall.

The Ministry reiterated its commitment to maximise national resource utilisation, enhance electricity supply, and boost petrochemical production. Gas field contracts under the 5th and 6th licensing rounds have been awarded to international companies, alongside dozens of investment agreements to develop both associated and free gas resources.

(Source: Ministry of Oil)

By John Lee.

The Council of Ministers has approved an accelerated plan to develop the Akkas gas field in Anbar as part of the government's strategy to advance the oil and gas sector.

The project will be led by the state-owned Midland Oil Company (MdOC), with Schlumberger (SLB) implementing the first phase.

The field is expected to produce 100 million standard cubic feet of gas per day within one year.

Rights to the field were originally awarded to a consortium of Kogas and KazMunaiGas (KMG) in the third licensing round (October 2011), but KMG pulled out, leaving Kogas as sole investor and operator on new contract terms.

In April 2024, Iraq signed a contract with a little-known Ukrainian company called Ukrzemresurs to develop the field, replacing Kogas.

Industry experts, including, Iraq Business News Expert Blogger, Ahmed Mousa Jiyad, have questioned the wisdom of this decision.

There was no mention of Ukrzemresurs in Wednesday's announcement from the Prime Minister's Office.

(Source: PMO)

By Ahmed Mousa Jiyad. Any opinions expressed are those of the author, and do not necessarily reflect the views of Iraq Business News.

Rebalancing IOCs Positioning in the Upstream Petroleum Sector in Iraq

The Ministry of Oil (MoO) recently concluded an agreement with BP covering four main oilfields in Kirkuk, following an earlier contract with an unidentified Ukrainian company to resume development of the Akkas gas field.

Approximately a year prior, MoO finalised and executed an agreement with TotalEnergies and QatarEnergy encompassing four different projects. These three agreements could, if implemented, reverse the exodus of International Oil Companies (IOCs) and rebalance their positioning in Iraq's upstream petroleum sector. The lack of transparency surrounding these deals makes it difficult to assess how well they serve Iraq's interests. However, available information suggests the agreements, particularly with BP and TotalEnergies, strongly favor these IOCs from a comparative perspective.

IOCs include well-known majors, medium-sized enterprises, and smaller companies, broadly categorised as Western IOCs (WIOCs) and non-Western IOCs (NWIOCs). Their positioning in Iraq's upstream petroleum sector over the past twenty years has evolved through three distinct yet overlapping phases.

1. The initial phase, coinciding with the aftermath of the 2003 Anglo-American invasion and occupation, was characterised by clear WIOC dominance.
2. This dominance gradually and dramatically weakened during the second phase, culminating in an exodus of several major WIOCs, which created opportunities for NWIOCs to enter the market and, for larger companies among them, to consolidate their strategic positions.
3. The third phase has witnessed new agreements with select WIOCs, two of which could significantly rebalance their own positions and, consequently, overall WIOC positioning in Iraq's upstream petroleum sector.

While IOC positioning carries geopolitical and strategic implications from both corporate and national perspectives, this article focuses primarily on the corporate viewpoint. The contractual frameworks, governance modalities, processes, and stakeholder relationships differ across these three phases.

After reviewing and analysing these phases, this article provides a comparative assessment of the latest two agreements-the TotalEnergies and BP-Kirkuk deals.

Click here to read the full article.

Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq's Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad's biography here.