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By John Lee.

The Ministry of Oil has reviewed progress on major development projects at the Rumaila oil field in Basra governorate.

On behalf of Deputy Prime Minister for Energy and Minister of Oil Hayan Abdul Ghani Al-Sawad, Undersecretary for Upstream Affairs Bassem Mohammed Khudair conducted a field visit to Rumaila to follow up on projects being implemented by BP, its partner PetroChina, and Basra Oil Company (BOC).

The visit included inspection of the produced water re-injection project, which has technical, economic and environmental benefits. The project provides injection water to maintain reservoir pressure and reprocesses water previously injected into wells. Its total capacity is 1.5 million barrels of water per day across five phases. The first phase entered production last year, while the second phase is scheduled to come online by the end of 2027, reducing reliance on external water sources.

Khudair also reviewed construction of the integrated production facility with a capacity of 240,000 barrels per day. The project has reached 50% completion and is progressing in line with the approved schedule. It was announced during the visit that two million work hours have been achieved without injuries, with the facility designed to produce oil to the highest specifications.

The tour further covered the Qurainat site, where a low-pressure gas processing project is under way. The project is expected to significantly reduce gas flaring and associated environmental impacts, in line with the ministry's sustainability objectives, and is scheduled for completion in the first quarter of the year.

At the Rumaila Operating Organisation (ROO) headquarters, the undersecretary received a presentation highlighting key achievements, including:

• An 80% reduction in gas flaring compared with 2019.
• Sustained production of around 1.4 million barrels per day during 2025.
• An overview of ongoing projects, technical challenges and proposed solutions.

Khudair praised the efforts of BP, PetroChina and Basra Oil Company in delivering projects on schedule, noting that Iraqi staff account for about 93% of the workforce at the field, alongside continued implementation of training and development programmes.

(Source: Ministry of Oil)

By John Lee.

The Missan Oil Company has increased volumes of processed gas from the Halfaya field, with the Halfaya Gas Receiving Station (GRS) now receiving and processing up to 190 million standard cubic feet per day (mmscfd).

In a statement to the state-run Iraqi News Agency (INA), the company said the facility has undergone significant development since its construction in 2012, becoming a key supplier of processed gas to power generation plants. National management assumed full operational control of the station in 2014 following the handover from PetroChina.

The company highlighted a series of expansion works, including the construction of the GRS2 station, infrastructure upgrades to handle all gas produced from the Halfaya field, and the installation of sludge catcher equipment to improve supply efficiency in line with the requirements of the Ministry of Electricity and the Maysan investment power plant.

Since mid-2024, the Gas Processing Plant (GPP) has been operational, enabling the station to process between 180 and 190 million standard cubic feet per day. The gas undergoes multiple treatment stages, including condensate removal and heating to ensure operational readiness.

The processed gas supplies the Amarah gas power plant and the Maysan investment power plant, supporting electricity generation of between 1,300 and 1,400 megawatts. The company said this reflects coordination between production, engineering, health and safety, and metering teams to ensure reliable supply and accurate accounting.

(Source: Iraqi News Agency)

By John Lee.

Scottish consulting and engineering company Wood has secured a new contract to deliver project management and engineering services for PetroChina at the West Qurna 1 oilfield in southern Iraq -- one of the world's largest -- continuing its decade long support there.

Under the contract, Wood will manage engineering, procurement and construction projects.

Located approximately 50 kilometers north-west of Basra, West Qurna 1 holds more than 20 billion barrels of recoverable reserves and is a cornerstone of Iraq's energy infrastructure.

The contract will be delivered by nearly 200 Wood employees based in Iraq and the United Arab Emirates (UAE).

On Monday, Wood shareholders accepted a takeover offer from Dubai-based Sidara, which has also bought companies such as Penspen, Perkins+Will and Dar.

(Source: Wood plc)

By John Lee.

Deputy Prime Minister for Energy Affairs and Minister of Oil, Engineer Hayan Abdul Ghani Al-Sawad, inaugurated on Sunday the OT2 and OT3 oil processing facilities at the West Qurna-1 field, with a combined capacity of 210,000 barrels per day.

The Minister explained that the project includes the construction of two new crude oil processing plants, each with a production capacity of 105,000 barrels per day. He praised the efforts of the field's operating entity, which includes the China Petroleum Engineering & Construction Corporation (CPECC) and the Basra Oil Company (BOC), for completing the project as planned to enhance national production capacity.

Abdul Ghani emphasised that this achievement reflects the government's and the Ministry of Oil's commitment to the optimal investment of national resources, strengthening Iraq's production capabilities, supporting the national economy, and contributing to sustainable development.

The ceremony was attended by the Deputy Minister for Extraction Affairs, Bassem Mohammed Khudair; Director General of the Basra Oil Company, Bassem Abdul Karim; Chinese Consul in Basra, Chen Bishong; Deputy Director of CPECC, Jiang Feng; and Director General of WQIFOD, Ni Qi Qiuan, along with senior officials from the Ministry of Oil and Basra Oil Company.

West Qurna 1 was awarded to ExxonMobil during Iraq's first licensing round in 2010. However, ExxonMobil requested to transfer its stake to PetroChina, a process completed after negotiations and approval in 2023.

(Source: Ministry of Oil)

By John Lee.

France's Vallourec has secured two contracts to supply Oil Country Tubular Goods (OCTG) to support the drilling operations of China National Offshore Oil Corporation (CNOOC) and PetroChina in Iraq.

According to a statement from the company, these contracts carry potential revenue of over $130 million [IQD 170 billion].

The contracts cover the supply of carbon steel and Super-13Cr steel OCTG products with VAM® premium connections. Deliveries are scheduled throughout 2025 and 2026 to support Iraq's increasing drilling activities.

The company notes that demand is rising for premium OCTG material in Iraq, as the country, "holds some of the world's largest oil reserves with several super-giant oil fields that are increasingly being developed by international oil and gas companies."

Philippe Guillemot (pictured), Chairman of the Board of Directors and CEO of the Vallourec Group, commented:

"These contracts come in the context of recent announcements from Iraq's Ministry of Oil to increase the country's oil production capacity from 4.1M bpd in 2025 to 6M bpd in 2029."

CNOOC has interests in the Maysan Oil Fields and Block 7, while PetroChina -- part of China National Petroleum Corporation (CNPC) -- is developing West Qurna 1.

(Source: Vallourec)

By John Lee.

The China Huanqiu Contracting & Engineering Company (HQC), a subsidiary of the China National Petroleum Corporation (CNPC), has reportedly signed a Project Management Consultancy (PMC) contract for the West Qurna-1 oilfield.

According to sina.com.cn, this is CNPC's largest overseas service contract since 2020.

In January 2024, PetroChina, also a subsidiary of CNPC, took over from ExxonMobil as main operator, following ExxonMobil's divestment of its remain interest in the field to Basra Oil Company (BOC) and Pertamina.

(Source: sina.com.cn)

By John Lee.

Iraq's Minister of Electricity, Eng. Ziyad Ali Fadel, has addressed key energy issues in interviews with Al Arabiya and Al Hadath, outlining government efforts to secure power supply and mitigate potential summer shortages.

Key points include:

• The halt of exemptions has affected 800 MW of electricity imports from Iran, impacting Diyala, Maysan, and Basra.
• The Ministry has not received official notification regarding the suspension of Iranian gas imports, with discussions ongoing.
• Alternative measures include fuel oil (kaz), regional power grid connections, solar power projects, and the establishment of a floating LNG terminal.
• Turkmenistan is being considered as an alternative gas supplier, as it is not subject to sanctions.
• A floating platform for LNG imports will be installed in the Gulf by June to supply power plants.
• Turkey has agreed to double electricity supply via the Iraq-Turkey interconnection to 600 MW starting mid-May.
• Iraq-Kuwait grid connection is 90% complete, with landmine clearance in Fao delaying finalization.
• Renewable energy projects under development:
  • 1,000 MW solar by TotalEnergies (Basra)
  • 750 MW by PetroChina (Muthanna)
  • 500 MW by Bilal Iraq (Babel & Karbala)
  • Additional 15,000 MW planned using combined-cycle and solar technologies.
• Iraq is shifting towards 15,000 MW of crude oil-based power generation, similar to Saudi Arabia's model.
• Major agreements planned:
  • 24,000 MW with GE (USA)
  • 10,000 MW with Siemens (Germany)
• Iraq is executing its largest-ever power grid expansion, upgrading transmission lines and substations to stabilize electricity supply.

(Source: Ministry of Electricity)

By John Lee.

Iraq's Ministry of Oil celebrated the groundbreaking of the West Qurna 1 Field Operations Center (Phase 1) and inaugurated several service projects in Al-Sadiq District, Basra Province.

The initiatives were carried out by the Basra Oil Company (BOC) in collaboration with PetroChina, the operator of the West Qurna 1 field.

The new center will play a pivotal role in managing water injection, oil production, and gas processing operations. Once operational, it is expected to enhance efficiency and oversight of production activities across the field.

Oil Minister Abdul Ghani emphasized the strategic importance of the West Qurna 1 oil field, which boasts reserves exceeding 22 billion barrels. The field currently produces 550,000 barrels per day (bpd), with ongoing efforts to sustain and boost output.

Key Developments:

1. Infrastructure Improvements in Al-Sadiq District
   • Road Rehabilitation: Resurfacing and paving of key roads, including "Alam Street" (8.6 km) and "Antar Street" (5.5 km).
   • Electricity Projects: Commissioning of a new 33/11 kV substation in Al-Housh area to enhance local power supply.
2. Educational Support
   • Provision of supplies to 7 schools and the Institute of Fine Arts in Al-Sadiq and Al-Madina districts, including classroom furniture, office equipment, and IT tools.
3. Job Creation
   • Increased employment opportunities for local residents.
4. Gas Utilization Initiative
   • The minister directed PetroChina to prioritize capturing and utilizing associated gas for power generation, reducing flaring and contributing to the national grid.

West Qurna 1 was awarded to ExxonMobil during Iraq's first licensing round in 2010. However, ExxonMobil requested to transfer its stake to PetroChina, a process completed after negotiations and approval in 2023.

(Source: Ministry of Oil)

By John Lee.

Iraqi Prime Minister Mohammed Shia' Al-Sudani met with Mr. Dai Houliang, Chairman of the Board of Directors of the China National Petroleum Corporation (CNPC), and an accompanying delegation.

Al-Sudani affirmed Iraq's keenness to develop relations with China across various sectors, emphasizing that the presence of Chinese companies, including in the oil sector, strengthens this aim.

He highlighted the associated gas project in Missan Province, implemented by PetroChina, as a strategic project enhancing bilateral ties. The project aligns with the government's priorities to curb gas flaring.

Al-Sudani outlined Iraq's interest in developing gas projects to boost the manufacturing and fertilizer industries, adding value to the economy and creating job opportunities. He proposed presenting potential sites to CNPC for integrated energy projects comprising oil and gas production, processing plants, power plants, and petrochemical refineries.

The Prime Minister suggested linking China's Belt and Road Initiative with Iraq's Development Road project, which CNPC expressed willingness to cooperate on. Iraq is open to partnering with CNPC on petrochemical projects abroad. Environmental standards and providing an attractive investment environment were emphasised, including establishing training centers and academic partnerships.

(Source: PMO)

By John Lee.

Iraq's Prime Minister Mohammed Shia' Al-Sudani inaugurated a major gas processing project in the Halfaya oilfield in Maysan governorate, with a capacity of 300 million standard cubic feet per day.

Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayyan Abdul Ghani, stated that the commissioning of the Halfaya gas processing plant represents a significant addition to the industry's utilization of associated gas and the prevention of its flaring, transforming it into a valuable energy source to support Iraq's energy sector.

The Halfaya gas processing project is one of the most important integrated projects achieved thanks to the directives and follow-up of the Prime Minister and the efforts of the joint management of the Halfaya field, comprising China's PetroChina [CNPC] and Maysan Oil Company (MOC), which adhered to the Ministry's plans and programs.

The plant, designed with a capacity of 300 million standard cubic feet per day, consists of two units with a capacity of 150 million standard cubic feet each. It is part of Petrochina's commitments under the licensing rounds contracts.

Abdul Ghani explained that the project aims to sweeten and dehydrate the gas, then separate its main components to produce dry gas for the national grid to supply power plants in Maysan, including the Al-Amarah government plant and the Maysan investment plant, generating over 1,200 megawatts. It will also produce liquefied gas for cooking and automotive fuel, with an initial capacity ranging from 1,100 to 1,200 tons per day.

Additionally, the project will contribute to the production of gas condensates at a rate of up to 20,000 barrels per day, which will be blended with crude oil to enhance its marketing specifications. It will also produce sulfur as a by-product of gas processing, with a capacity of 20 to 40 tons, to be marketed by the State Oil Marketing Organization (SOMO).

The Deputy Minister for Gas Affairs, Ezzat Sabir, stressed that the project will contribute to stopping gas flaring, preserving a clean environment, and supporting the government's and ministry's efforts to invest in associated and free gas, as well as renewable energy.

Sabir added that the ministry has succeeded in utilizing 61 percent of associated gas and aims to reach 78 percent by the end of the year, with ongoing projects to invest in associated gas in oilfields to stop flaring and convert it into useful energy.

(Source: Ministry of Oil)