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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 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)

From IMPACT. Any opinions expressed are those of the author(s), and do not necessarily reflect the views of Iraq Business News.

Iraq: Climate Change and Agriculture in Al-Dawaya and Al-Gharraf (March 2025)

This assessment was conducted in the Al-Dawaya and Al-Gharraf sub-districts of Thi-Qar [Dhi Qar] governorate, a region facing an unprecedented climate-induced crisis. Iraq's arid to semi-arid climate, exacerbated by rising temperatures, shifting rainfall patterns, and upstream water policies, has led to severe water scarcity.

The crisis, driven primarily by climate change, poor irrigation infrastructure, and long-standing issues of water and soil salinity, has affected all farmers and livestock owners in the area. According to official displacement and water shortage data, thousands of families have been forced to migrate, while many remain to cope with diminishing agricultural productivity.

Key stakeholders in this assessment include national and local government bodies-such as the Directorates of Agriculture and Water-international organizations, local NGOs, and the affected communities themselves. This multi-stakeholder process was coordinated under the broader humanitarian and development framework facilitated by IMPACT in partnership with ACTED and funded by ECHO.

The assessment was designed to address critical information gaps concerning the vulnerabilities of local agricultural communities, specifically the economic, social, and environmental dimensions tied to water scarcity, soil degradation, and limited fodder access.

The research employed a mixed-methods approach, integrating quantitative surveys (conducted remotely via phone interviews) with qualitative tools like key informant interviews, focus group discussions, and participatory mapping exercises. The study covered detailed household profiles, income and expenditure patterns, and infrastructural evaluations, complemented by remote sensing analyses.

While the remote data collection imposed some limitations on representativeness, the triangulation of multiple data sources ensured a robust understanding of the challenges and informed the subsequent identification of priority interventions.

Click here to download the full report

Click here to download the Key Findings Presentation

To browse our comprehensive library of reports on Iraq, click here.

By John Lee.

Baker Hughes has signed a memorandum of understanding (MoU) with the Halfaya Gas Company (HGC), with the objective of setting the basis to establish a collaboration for a gas flaring reduction project at the Nahr Bin Umar [Nahr Ben Umar] gas processing plant in southeastern Iraq.

The signing took place in Washington, D.C., in the presence of H.E. Mohammed Shia' Al Sudani, prime minister of the Republic of Iraq, during the prime minister's official visit to the United States to strengthen bilateral ties and facilitate new private sector initiatives, including enhancing the resilience and sustainability of Iraq's energy ecosystem.

According to a statement from the company, the MoU shall lay the groundwork for Baker Hughes and HGC to collaborate by leveraging Baker Hughes' proven technology and experience in developing and implementing deflaring solutions, including the supply of critical turbomachinery and process equipment, a pre-Front End Engineering and Design (FEED) study of modular gas processing skids, and supporting the project's selected FEED contractor in developing the plant design.

HGC is a special purpose company, owned by Raban Al Safina for Energy Projects (RASEP), that was established to deliver a new gas processing plant to serve the onshore Bin Umar field. In late 2023, the Iraq Ministry of Oil (MOO) awarded a build-own-operate-transfer (BOOT) contract to HGC. The field produces 40,000 of barrels per day and over 150 million of standard cubic feet per day of associated sour gas, currently flared or used (untreated) as a fuel gas for a nearby power plant. HGC's Bin Umar gas plant will convert waste gas into treated dry gas, Liquefied Petroleum Gas (LPG) and condensate for domestic use and export.

Through the deployment of Baker Hughes' portfolio of emissions abatement technologies, HGC will aim to reduce emissions and improve the efficiency of its gas processing plant by reutilizing the gas that would otherwise go to waste, supporting HGC and Iraq's overall prioritization of gas projects to meet the country's power needs and to curb flaring.

The collaboration builds on Baker Hughes' existing and successful work with Iraq's state-owned South Gas company for the construction of modular gas processing plants at the Nasiriya and Gharraf oil fields in the Dhi Qar province to capture and treat gas that would otherwise be flared.

(Source: Baker Hughes)

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.

The Iraqi Ministry of Oil reiterated its commitment to executing strategic gas development and investment projects.

During a leadership meeting on gas projects held on Sunday at the ministry's headquarters, Deputy Minister for Gas Affairs, Azat Saber, emphasized the importance of accelerating new projects through national efforts and international collaboration, particularly in areas rich in gas hydrocarbon structures.

Saber highlighted ongoing initiatives, including the Al-Halfaya Complex project in Maysan, set to add 300 million cubic feet per day at the beginning of the next year. This gas will supply electricity power stations. Additionally, an agreement with TotalEnergies will add 600 million cubic feet, and gas processing complexes in Nasiriyah and Gharraf with a capacity of 200 million cubic feet each.

Furthermore, Basra Gas Company (BGC)'s gas investment projects have achieved production rates exceeding 1,000 million cubic feet, with future plans aiming for 2,000 million cubic feet.

Saber also mentioned support for gas storage and compression projects, essential for the gas sector, and emphasized adherence to the government program and directives from the Deputy Prime Minister for Energy and Minister of Oil to expedite gas investment projects within set timelines. This will support the national economy and secure gas supplies for electricity power stations and other gas-related uses. He expressed hope for adding new quantities to national production in the coming months.

Saber revealed the ministry's efforts to develop the Mansuriya field in Diyala Governorate through an agreement with a foreign company, which will be announced soon.

The meeting, attended by the general managers of companies and relevant departments, discussed various agenda items.

(Source: Ministry of Oil)

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)