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By John Lee.

Prime Minister Mohammed S. Al-Sudani oversaw the signing of three significant Memorandums of Understanding (MoUs) on Wednesday, two in the electricity sector and one to enhance commercial cooperation with the United States.

The first MoU, signed with GE Vernova, outlines a strategic cooperation framework to develop combined-cycle gas power plants in Iraq, with a total capacity of approximately 24,000 megawatts-representing the most advanced electricity generation project in the country's history. The agreement includes plans for securing international financing from major global banks.

A second MoU was signed between the Iraqi Ministry of Electricity and UGT Renewables to implement an integrated solar power project with a capacity of 3,000 megawatts. The project will also include battery energy storage of up to 500 megawatt-hours, modernization of the national grid, and the construction of 1,000 km of high-voltage direct current (HVDC) transmission infrastructure. Financing will be provided by the Export-Import Bank of the United States (EXIM), UK Export Finance (UKEF), and JP Morgan, the lead arranger.

In a move to enhance commercial relations, a third MoU was signed between the Federation of Iraqi Chambers of Commerce and the U.S. Chamber of Commerce. The agreement comprises nine articles designed to expand institutional, commercial, and entrepreneurial collaboration, with a strong emphasis on supporting small and medium-sized enterprises (SMEs) in both countries.

(Source: PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani received a delegation from the U.S. Chamber of Commerce on Wednesday, including American investors and corporate executives, accompanied by the U.S. Chargé d'Affaires in Iraq.

The meeting focused on strengthening economic ties and promoting Iraq as an attractive destination for foreign investment.

The Prime Minister outlined steps taken by the Iraqi government to facilitate business entry, noting the country's broad and diverse market, legal reforms, and investment incentives. He emphasised Iraq's stability, skilled labour force, and ongoing development across various sectors.

According to a statement from the US Embassy, almost 60 U.S. companies are part of the delegation, aiming to. "strengthen U.S.-Iraq private sector ties and foster fair and balanced trade between the U.S. and Iraq."

The U.S. Chamber and the Federation of Iraqi Chambers of Commerce earlier signed a memorandum of understanding (MoU) to "strengthen ties between the US and Iraqi private sectors." It added: "This partnership will foster long-term economic collaboration."

Last week, the US imposed additional tariffs of 39 percent on imports from Iraq (excluding oil).

Full statement from the Media Office of the Prime Minister:

Prime Minister Mohammed S. Al-Sudani Welcomes a Delegation from the U.S. Chamber of Commerce

Prime Minister Mohammed S. Al-Sudani welcomed today, Wednesday, a large delegation from the U.S. Chamber of Commerce, which included a number of corporate executives and American investors, in the presence of the U.S. Chargé d'Affaires in Iraq.

The Prime Minister reviewed the facilitations and measures taken by the government to support the entry of businesspeople and companies into the Iraqi market, which now holds numerous promising opportunities. He noted that Iraq offers a broad and diversified market for various goods, products, and services.

Prime Minister Al-Sudani emphasized that the Iraqi people have made significant achievements in defeating terrorism and laying the foundations for national development. He stressed the importance of maintaining and strengthening bilateral relations with the United States, particularly since Iraq today stands as a distinguished democratic model in the region.

Key highlights from the Prime Minister's remarks:

• Due to the war in the 1980s, the sanctions in the 1990s, and the fight against terrorism over the past two decades, development in Iraq has been delayed across all sectors.
• Iraq is a fertile ground for investment opportunities in all fields.
• The country today enjoys political, security, societal, and economic stability, and is witnessing an unprecedented development boom.
• Iraq has a skilled labor force and promising expertise across various fields.
• The government has worked to improve the business environment and made serious efforts to reform laws to facilitate company registration and operations.
• Iraq's investment law offers numerous incentives to investors, and the government is working on a legislative package to further encourage foreign investment.
• Iraq's trade balance is not in deficit, but structural reforms are needed to reduce reliance on oil.
• Iraq is an industrial and agricultural nation and represents the shortest commercial route between East and West, connecting to Europe through Türkiye.
• The Development Road Project will become the shortest and most cost-effective economic corridor linking Asia and Europe.
• Iraq possesses untapped mineral wealth and ranks first globally in sulfur reserves and second in phosphate reserves.
• Iraq produces 4 million barrels of oil per day, but flares associated gas while simultaneously importing gas to power electricity stations.
• The government has set a vision for strategic projects and signed contracts with international companies to stop gas flaring by early 2028.
• Iraq ranks among the top ten countries in the world in natural gas reserves.
• Some portray a negative image of Iraq, which is not only unfair but also inaccurate.
• Iraq has welcomed numerous investment companies to carry out projects in energy, housing, industry, and agriculture, with the total value of investment licenses reaching $88 billion.
• Sovereign guarantees have been granted to the private sector to support the implementation of projects in various sectors.

(Sources: PMO, U.S. Chamber of Commerce, US Embassy in Baghdad)

By John Lee.

In line with the directives of Deputy Prime Minister for Energy Affairs and Minister of Oil Hayan Abdul Ghani,

Iraq's Oil Pipelines Company has announced the successful operation of a new fuel oil pipeline connecting Samawa Refinery to the Samawa Combined Cycle Power Plant.

According to the company's Director General, Ali Abdul Kareem Al-Moussawi, the six-kilometre pipeline-with a diameter of 6 inches-was brought online through significant efforts by engineering and technical teams. The project also involved the commissioning of the pumping station at the refinery and the receiving station at the power plant, enhancing transportation efficiency and ensuring a steady fuel supply for electricity generation.

Al-Moussawi noted that this milestone will contribute to the modernisation of Iraq's fuel transport infrastructure, reducing dependence on tanker trucks, lowering operational costs, and improving security in fuel delivery.

The project was executed entirely by Iraqi personnel, with close coordination between the Oil Pipelines Company and the State Company Oil Projects (SCOP), ensuring the highest standards of safety and quality.

(Source: Ministry of Oil)

By John Lee.

Dana Gas has announced accelerated development at Kurdistan's Khor Mor and Chemchemal fields.

Full statement from Dana Gas

Dana Gas, the Middle East's leading publicly listed regional natural gas company, and its partner Crescent Petroleum, the oldest private oil & gas company in the Middle East, together with their partners in the Pearl Petroleum Consortium have announced that cumulative production from Khor Mor, Iraq's largest non-associated gas field, has reached 500 million barrels of oil equivalent (Mmboe), highlighting the level of development and growth from the Khor Mor field in the Kurdistan Region of Iraq (KRI) since 2008.

The Khor Mor plant operated by the companies provides the fuel for around 75% of the KRI's electricity generation, enabling affordable power for more than 6 million Iraqis in the KRI and other governorates of Iraq. With total investment to date exceeding US$3.5 billion, the operations have created more than 20,000 direct and indirect jobs in the region.

This production milestone coincides with the announcement of a series of development initiatives enabling considerable future growth.

Khor Mor field development

The companies announced that daily production from Khor Mor in early March reached 525 MMscfd of natural gas, a growth of 75% since 2017, in addition to 15,200 b/d of condensate, and 1,070 t/d of LPG.

The partners also announced that development of the KM-250 project, which promises to boost capacity by a further 50%, has accelerated the expected completion to Q1 2026. Progress on the US$1 billion expansion project, which includes US$250 million in financing from the US Development Finance Corporation (DFC), has advanced in recent months through fast-track simultaneous project construction and commissioning activities, enabling the company to cut the overall project schedule by several months.

Building on the potential of the Khor Mor field, the consortium has also commenced work on an appraisal strategy to unlock Khor Mor's additional significant hydrocarbon potential and plan the next phases of the field's development.

Chemchemal investment decision

Building on the immense potential of the Chemchemal field, the Pearl Petroleum partners also announced commencement of activities to appraise the Chemchemal Cretaceous reservoir and initiate production of up to 71 MMscfd during 2026. The partners have committed US$160 million to drill three wells, install an extended well test (EWT) facility, and construct associated enabling infrastructure.

Financing options under consideration

In light of these recent achievements and progress, Pearl Petroleum is considering further financing options and has engaged DNB Markets, part of DNB Bank ASA, and Pareto Securities AS as Joint Lead Managers and Bookrunners to arrange a series of fixed-income investor meetings. Subject to market conditions and acceptable terms, a new senior secured bond issue with a tenor of 5 years may follow. The proceeds will be used to finance these near-term growth opportunities and for general corporate purposes.

Commenting on the announcements, Majid Jafar, CEO of Crescent Petroleum and Board Managing Director of Dana Gas, said:

"We are at the start of an exciting new chapter for Pearl Petroleum with the imminent completion of the KM-250 expansion project, initial appraisal and development of the Chemchemal Field and an appraisal strategy to further unlock hydrocarbon potential of the Khor Mor Field. This work will further enhance the energy sector and economy of the Kurdistan Region and all of Iraq."

Richard Hall, CEO of Dana Gas, added:

"The KM-250 completion which we are now confident of accelerating to take place in Q1 2026 will transform our business, enabling the next major phase of expansion. Our ongoing positive discussions with the financial community reflect the increasing respect we are being afforded as a major regional energy company."

Pearl Petroleum was founded in 2009 as a consortium with Dana Gas and Crescent Petroleum as joint operators with a 35% equity share each, and with OMV, MOL, and RWE subsequently joining the consortium with a 10% share each. In the ensuing years, the project has delivered uninterrupted, affordable energy at scale to the KRI, making a considerable impact on the region's economy, society, and environment.

With over 80% local employment in operations, including in management positions, Pearl has has enabled fuel cost savings for the government and made a considerable positive contribution to the local economy. The natural gas produced in Khor Mor has also avoided 59 million tonnes of CO2 emissions to date by substituting oil and diesel with cleaner burning natural gas for power generation.

Pearl Petroleum remains committed to maintaining carbon neutrality having reduced total GHG emissions by over 20% in 2024 to 200 kTCO2e, while reducing overall energy consumption by 5%, bringing its total carbon intensity to 4.4kg CO2/Boe. This is among the lowest in the industry, supplemented by offsets of the remaining emissions to achieve carbon neutrality across operations.

(Source: Dana Gas)

By John Lee.

The London School of Economics (LSE)'s Middle East Centre has hosted a talk by Ahmed Tabaqchali, exploring the economic and financial interactions of the Iraqi economy with the outside world, particularly the use of the dollar in relation to Iran and the US.

While the US' Iraq policy is still fluid, there have been signs that America's 'maximum pressure campaign' towards Iran will have spillover effects in Iraq, with the Trump administration viewing policy towards Iraq solely through the lens of a perceived threat of Iranian dominance in the country. Iran's economic footprint in Iraq, both perceived and real, will be an issue for Iraq and its relationship with the US and the West.

According to Tabaqchali's data, in 2024 China imported about 95 percent of Iran's 1.55 mbpd of oil exports, worth $36 billion; $3bn of LPG, and $11 billion in other imports, for a total of $50 billion, using an extensive global financial web. In the same period, Iraq imported $3 billion in gas and electricity (which Iran does not receive and which are governed by waivers for humanitarian goods), and $7.7 billion of private sector imports. "So," argues Tabaqchali, "which is the lung here?"

The session, chaired by Toby Dodge, ended by a lively 40 min Q&A session.

Click here to view the full discussion.

(Source: LSE)

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 Prime Minister, Mohammed S. Al-Sudani, oversaw the signing of a major agreement between the Iraqi Ministry of Oil and BP for the development and production of four key oil fields in Kirkuk. The contract covers the Kirkuk field (Baba and Avana domes), Bai Hassan, Jambur, and Khabbaz.

The signing ceremony on Wednesday was attended by Oil Minister Hayan Abdul Ghani and BP's Chief Executive Officer, Murray Auchincloss.

The agreement includes a comprehensive rehabilitation plan aimed at increasing crude oil production to 420,000 barrels per day and utilizing associated gas through the North Gas Company (NGC) to produce 400 million standard cubic feet per day. Additionally, a 400-megawatt power plant will be constructed to support Iraq's electricity needs.

This initiative is expected to curb gas flaring, improve energy sustainability, and create job opportunities in the energy sector.

(Source: PMO)

By John Lee.

Iraq's Prime Minister Mohammed S. Al-Sudani chaired a special meeting of the National Renewable Energy Team on Monday to review progress on the country's renewable energy strategy.

The Prime Minister instructed that renewable energy projects officially launch by summer, urging the acceleration of procedures and private sector engagement. The National Renewable Energy Team will coordinate efforts with the Supreme Authority for Coordination between Governorates, including oversight of billing and collection regulations.

Key initiatives discussed included:

• Solar power conversion for government buildings.
• Smart energy solutions for the Al-Budur residential complex.
• Renewable energy installations in 100 schools and 5 health centers.
• A national conference to launch fast-track smart energy solutions.

The meeting granted initial approval for two 20-megawatt solar power stations in Al-Rusafa and Al-Karkh, while the Ministry of Electricity will install two 3-megawatt solar units at the Army Canal site as part of Iraq's broader renewable energy drive.

(Source: PMO)

By John Lee.

Iraqi Prime Minister Mohammed S. Al-Sudani met with Turkish Minister of Energy and Natural Resources, Alparslan Bayraktar, to discuss energy cooperation and economic ties.

Al-Sudani reiterated Iraq's commitment to collaboration with Turkish companies, particularly in the energy sector, including cross-border electricity interconnection and cooperation on the Strategic Development Road Project. He also stressed the need for enhanced water management cooperation to secure stable inflows to Iraq.

The Prime Minister reaffirmed ongoing efforts to resume oil exports from the Kurdistan Region of Iraq (KRI), noting that discussions with international oil companies are underway to resolve technical issues preventing exports.

Bayraktar expressed Türkiye's interest in expanding energy ties, including refinery and petrochemical projects, and emphasized the importance of exporting Iraqi oil through the Ceyhan port. He also highlighted investment opportunities within the Strategic Development Road Project.

Full statement from the Media Office of the Prime Minister:

Prime Minister Mohammed S. Al-Sudani Meets Turkish Minister of Energy and Natural Resources

Prime Minister Mohammed S. Al-Sudani met on Monday with the Turkish Minister of Energy and Natural Resources, Mr. Alparslan Bayraktar.

During the meeting, Prime Minister Al-Sudani reaffirmed the Iraqi government's commitment to strengthening joint cooperation with Turkish companies across various sectors, particularly in the energy sector, where Iraq is working to diversify its energy sources. This includes efforts to increase electricity imports through cross-border interconnection and cooperation on the Strategic Development Road Project. Additionally, he emphasized the importance of reinforcing cooperation on water management to ensure stable and regular water inflows to Iraq.

The Prime Minister also highlighted the government's extensive efforts to resume oil exports from the Kurdistan Region of Iraq (KRI), stating that negotiations are ongoing with international oil companies operating in the KRI to resolve technical issues necessary for restarting exports.

For his part, Minister Bayraktar expressed Türkiye's keen interest in further expanding cooperation with Iraq across various fields, including refinery projects and petrochemical industries. He also underscored the importance of exporting Iraqi oil from Basra through Türkiye's Ceyhan port, and discussed the Strategic Development Road Project, emphasizing the promising investment opportunities it offers.

(Source: PMO)

By John Lee.

Prime Minister Mohammed S. Al-Sudani chaired a high-level meeting on Sunday to advance the smart solar energy project, with participation from the Minister of Electricity, the National Smart Solutions and Renewable Energy Team, several governors, and prime ministerial advisers.

Key discussion points included:

• Solar energy adoption and smart metering technologies.
• Private sector engagement in smart energy projects under local government supervision.
• Technical contracts for project implementation, to be submitted to the Council of Ministers for approval.

Prime Minister Al-Sudani instructed governors to accelerate land allocation for private-sector projects and compile a list of interested companies and investors.

The Ministry of Electricity was tasked with drafting technical contracts to ensure efficiency and regulatory compliance.

(Source: PMO)