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By John Lee.

Production and export operations at the Garraf [Gharraf] oil field in southern Iraq have been suspended following a force majeure declaration by the Iraqi government, according to Japan Petroleum Exploration (JAPEX).

In a statement to the markets on Friday, the company said that there is currently no clear timeline for the resumption of production or shipments, preventing any near-term revenue expectations from the project.

JAPEX participates in the Garraf field through its subsidiary, Japex Garraf Ltd., in partnership with Malaysian operator Petronas. 

The suspension affects both upstream production and associated export activities at the field.

(Source: JAPEX)

By John Lee.

The Ministry of Oil has confirmed that operations at the Nasiriya and Gharaf gas fields project will begin on schedule in the first quarter of 2027.

In a statement, it said the installation of specialised equipment has begun, in collaboration with Baker Hughes.

China Petroleum Engineering & Construction Corporation (CPECC) is also heavily involved in the project.

Undersecretary of Gas Affairs, Mr. Izzat Saber Ismail, said that the Ministry and the South Gas Company (SGC) are committed to meeting all technical and construction requirements within this timeframe, adding that the estimated production capacity is 200 million standard cubic feet of gas per day.

(Source: Ministry of Oil)

By John Lee.

The Dhi Qar Oil Company (DQOC) has launched a comprehensive production plan to develop three key oil fields in Iraq's Dhi Qar province: Nasiriyah, Saba [Subba], and Garraf [Gharraf].

General Manager Sa'id Zgair Shalaka told the state-run Iraqi News Agency (INA) that the company has increased output from the Nasiriyah and Subba fields - both operated by national effort - with seven new wells added at Nasiriyah, raising production from 52,000 to 70,000 barrels per day (bpd).

In the Subba field, eight wells were linked and a new separation station was commissioned, increasing output from 8,500 to 30,000 bpd. Meanwhile, production at the Garraf field, operated under a licensing round, has reached approximately 180,000 bpd.

Regarding associated gas, Shalaka confirmed the completion of the first phase of a gas investment project at Garraf, with a current capacity of 37 million standard cubic feet per day (mmscfd), toward a total planned capacity of 140 mmscfd. The Nasiriyah field's gas is being developed, with 20-22 mmscfd currently utilised and a target of 30 mmscfd by year-end.

Project Director Jabbar Kareem Mazhar explained that the national teams completed the connection of seven wells at Nasiriyah using pre-fabricated 6-inch pipes over 16 km, and a 16-inch pipe over 1 km. The work included installation of wellhead manifolds and full integration with drilling operations.

The second phase, now underway, involves connecting four additional wells using approximately 15 km of piping. Surveying, route clearance, environmental and archaeological approvals, and material procurement have been completed. Field teams are currently carrying out welding, excavation, hydrostatic testing, and radiographic inspection.

(Source: INA)

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.

Iraq's Commission of Integrity has reported the detection of "excesses and waste" exceeding $33 million in two contracts for Dhi Qar Oil Company (DQOC) and several departments affiliated with the Ministry of Electricity in the province.

The department revealed excesses in the cost of a contract for the construction and maintenance of warehouses for the Garraf [Gharraf] oil field. The signed contract with a UAE company amounted to $27 million, while the estimated cost of the project did not exceed $12 million. The team also observed excesses of up to $18 million in a contract for the supply of oil pipes and covers for the Garraf field.

The Commission also pointed out the waste of 37,795,000 dinars [$29k] in the purchase of photocopying machines, printers, and archive devices at inflated prices. Additionally, there was an excess of around 52 million dinars in the purchase of medical waste incinerators and three basins.

The investigations also uncovered the waste of public funds in equipping a power generation station for the public company Al-Aur, amounting to $2 million, which has not been put into service for more than ten years.

(Source: Commission of Integrity)

By John Lee.

Under the guidance of Iraq's Deputy Prime Minister for Energy and Minister of Oil, Mr. Hayan Abdul Ghani, Dhi Qar Oil Company (DQOC) has completed the trial operation of a gas power plant at the Al-Gharraf oil field in Dhi Qar province.

This achievement aligns with the ministry's strategy to harness associated gas from oil production, aiming for integrated self-sufficiency in oil fields' operations. The gas power plant has a capacity exceeding 70 megawatts and will provide electricity for the field and its facilities.

The plant will be supplied with gas from oil operations within the field, reflecting DQOC's ongoing efforts to fully invest in this gas resource in collaboration with the operator.

This development is expected to contribute significantly to the oil field's electricity needs independently, reducing reliance on the national grid. In turn, the saved capacity of 70 megawatts will be channeled into the national grid to serve citizens. These initiatives are part of the Ministry of Oil's comprehensive plan to implement similar projects in other producing fields.

(Source: Ministry of Oil)

By John Lee.

The Iraqi Cabinet has approved a recommendation from the Ministerial Energy Council directing the Ministry of Oil's Dhi Qar Oil Company (DQOC) to invite the Italian company Progetti Europa & Global S.p.A. (PEG) to install and operate a "wet oil processing unit" at the Nasiriyah Gas Isolation Station.

The plant will have a capacity of 50,000 barrels per day (bpd).

PEG will be engaged through a "direct contracting method", exempting the contract from the government contract execution instructions (2/2014), provided that the Ministry of Oil assumes responsibility for the legal procedures related to the matter.

The company is also involved in Iraq's $17-billion Develepment Road Project ("dry canal"), and was awarded a $320-million contract at Gharraf oil field in April.

(Source: Ministry of Oil)

By John Lee.

Iraq's cabinet has approved a plan to refer the second phase of the gas drying project for the Gharraf oil field to a consortium consisting of the State Company for Oil Projects (SCOP), which is part of the Ministry of Oil, and the Italian company Progetti Europa & Global S.p.A. (PEG).

The project will cost $320,884,293 and will take 35 months to implement with a guarantee of 12 months.

PEG is separately involved in the rail project linking Al Faw Grand Port with Turkey.

(Source: Media Office of the Prime Minister)

By John Lee.

The Iraqi Drilling Company (IDC) has begun drilling the FQCS-88 oil well at the Fakka oil field in eastern Maysan [Missan] province.

The 2,000-horsepower IDC 55 rig is operating as part of a project to drill 22 oil wells for the China National Offshore Oil Corporation (CNOOC).

It will drill to a planned depth of 3,150 meters.

The company has also deployed the 2,000-horsepower IDC 58 drilling rig has part of a project to drill 28 oil wells in the Gharraf oil field in Dhi Qar for Malaysian company Petronas.

(Source: Ministry of Oil)

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

Iraq Pushes Key Gas Developments To Reduce Import Dependence On Iran

Iraq is advancing some key associated gas projects at the Gharraf and Nassiriya oil fields.

Click here to read the full report.