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By John Lee.

Iraq's Minister of Oil, Hayan Abdul Ghani, received the Ukrainian Ambassador to Baghdad, Ivan Dovhanich, on Wednesday.

The meeting was also attended by Deputy Head of the Diplomatic Mission, Sergiy Pushkarsky, Economic Affairs Representative Oleg Ishchenko, Director General of Ukrzemresurs, Maksym Mustafin, and the company's Iraq Director, Maksym Novikov.

Discussions focused on bilateral cooperation in the oil, gas, and energy sectors.

Last April, Iraq signed a contract with Ukrzemresurs to develop the Akkas gas field in Anbar Province. The Ministry of Oil subsequently defended the deal.

(Source: Ministry of Oil)

By John Lee.

Prime Minister Mohammed Shia Al-Sudani has launched the construction of three projects related to additional combined-cycle units for electricity generation.

• South Baghdad Gas Fired Power Plant, with a design capacity of 125 MW. Implemented by China's Dongfang Electric;
• Mansuriyah Gas Fired Power Station in Diyala Province, with a design capacity of 362 MW; and
• Akkas Gas Fired Power Station in Anbar Province, with a design capacity of 125 MW.

The Prime Minister emphasized that these combined-cycle projects will provide additional electricity without the need for additional fuel. This will reduce natural gas imports and help in addressing the needs of areas with higher energy demand, with a target production of 4,000 MW from combined cycle operations.

The Prime Minister also highlighted the government's approach to adopting an economic model that ensures fairness between the state and investors and regulates consumption. Final agreements have been reached on this economic model, which will be announced to the private sector and both local and international companies. This model will be applied to the 10,000 MW electricity generation project, with the Ministry of Electricity having already submitted its final vision on transmission and distribution projects.

The Prime Minister also highlighted the move towards renewable and environmentally friendly energy projects. A specialized team is working to shift government buildings to rely on solar energy, with reputable global companies offering proposals to implement solar energy projects at the provincial level, based on an economic model that will be adopted.

(Source: PMO)

By John Lee.

Ukrainian President has named a new ambassador to Iraq.

In a statement on Friday, Volodymyr Zelenskyy appointed Ivan Ivanovych Dovganych [Dovhanych] to the role.

In April, Iraq signed a contract with Ukrainian company Ukrzemresurs to develop the Akkas gas field in Anbar Province.

(Source: Office of the Ukrainian President)

By John Lee.

Iraq's Middle Oil Company [Midland Oil Company] has signed a preliminary agreement with a joint venture consisting of the Chinese company Jereh and Petro Iraq to develop the Mansuriyah gas field.

Deputy Minister for Extraction Affairs, Bassem Mohammed Khudair, stated that this contract is part of the Ministry of Oil's efforts to invest in gas resources following the signing of the Akkas gas field development contract.

The ministry aims to eliminate flaring and complete ongoing projects, in addition to activating contracts from the fifth and sixth licensing rounds, covering 13 fields across 10 provinces.

General Manager of the Central Oil Company, Mohammed Yaseen, announced that the initial production from the Mansuriyah gas field in Diyala Province is expected to reach 100 million cubic feet per day within 18 months, with peak production of 300 million cubic feet per day projected within 4-5 years after the contract signing.

According to a statement at the end of April from the Media Office of the Prime Minister, the Council has approved the allocation of $506 million for the Midland Oil Company's 51-percent share in the project over the first three years, distributed as $73 million for the first year, $187 million for the second year, and $246 million for the third year.

This amount will be managed by the Midland Oil Company under an agreement with the Ministry of Finance. The project will be included in licensing rounds to settle dues with crude oil or condensates in line with existing licensing contracts.

Mansuriyah gas field was originally granted in Iraq's third licensing round (2010) to TPAO (37.5%), Oil Exploration Company (25%), Kuwait Energy (KEC) (22.5%), Kogas (15%). That contract was reported to have been cancelled in 2020. A new deal was signed with Sinopec in January 2022. In mid-2023, press reports suggest that the Sinopec deal was in doubt, following requests from the company to amend the contract.

(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.

Why Iraq Just Awarded A Strategically Vital Gas Field To A Ukrainian Firm

Russia-aligned Iraq has awarded the development of a crucial gas field to a Ukrainian firm.

The importance of the Akkas gas field for Russia, Iran, and China can barely be overstated.

Click here to read the full report.

By John Lee.

The Iraqi Ministry of Oil has defended its decision to award the development of the Akkas gas field to little-known Ukrainian company, Ukrzemresurs.

According to a statement from the Ministry, the decision followed Ukrzemresurs' application to the Contracts and Petroleum Licensing Directorate (PCLD), fulfilling the required standards and providing financial and legal guarantees. The ministry is processing the entry visas for the company's engineers, geologists, and technicians to facilitate the handover of the field and the start of contractual commitments.

Deputy Minister for Extraction, Bassem Mohammed Khudair, stated that the aim is to achieve an initial production of 100 million standard cubic feet per day (MMSCFD) during the first phase, scaling up to a peak production of 400 MMSCFD as per the contract timelines. Bassem Taher, Director General of the Contracts and Petroleum Licensing Directorate, confirmed that the qualification and contracting processes were neutral and rigorous, in line with other international companies.

The Ministry said Ukrzemresurs was the only company willing to develop the field under the existing contractual terms, in contrast to other companies' demands for changed conditions. The ministry aims to expedite the development of the Akkas gas field to bolster Iraq's energy sector with new production.

(Source: Ministry of Oil)

By John Lee.

Iraq has signed a contract with Ukrainian company Ukrzemresurs to develop the Akkas gas field in Anbar Province.

According to a statement from the Ministry of Oil, the goal is to increase national production by an additional 400 million standard cubic feet per day (MMSCFD) of gas within four years, to supply power stations; 100 MMSCFD is planned in the first stage (1-2 years).

The Ukrainian company will replace the South Korean company Kogas in operating the field.

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.

Shafaq News Agency quotes Ali al-Mashkoor, a member of the parliamentary committee, as expressing concerns about this deal, describing the Ukrainian company as "weak", and mentioning suspicions regarding the deal.

The company does not appear to be well known. D&B lists it as registered in Kyiv, and headed by Maksym Yuriiovych Mustafin.

(Sources: Ministry of Oil, Shafaq News Agency, D&B)

By John Lee.

Iraq's state-run Iraqi News Agency (INA) has quoted the Undersecretary of Extraction at the Ministry of Oil, Bassem Muhammad Khudair, as saying that the contract to develop the Akkas gas field will be granted in the coming days to a Ukrainian company.

He did not name the company.

Meanwhile, a official statement from the Ministry of Oil on Monday simply referred to, "an upcoming transfer of the Akkas field development contract from Korea's Kogas to a foreign company qualified by the Petroleum Contracts and Licensing Directorate (PCLD)."

It added that this as a significant move toward developing the Akkas gas field to produce 400 million standard cubic feet per day.

(Sources: INA, Ministry of Oil)

By John Lee.

During the opening of the first Iraq Oil Projects Exhibition and Licensing Rounds Conference in Baghdad at the weekend, the Minister of Oil reiterated his claim to have increased Iraq's oil and gas reserves by adding 6 billion barrels of crude oil and 32 billion standard cubic feet of gas. (Oil reserves were previously stated to be 140 billion barrels).

Hayan Abdul Ghani added that accomplishments during the current government's tenure include the development contract for the Ahdab oil field with a capacity of 250,000 barrels per day (bpd) and the opening of the Karbala Strategic Refinery with a capacity of 140,000 bpd.

He also listed the accelerated operation of the Akkas gas field, the first phase of liquid separation for Basra Gas Company (BGC) with a capacity of 200 million standard cubic feet per day, and the operation of the liquid gas warehouse in Samawa.

The signing of the integrated South Iraq Agreement with TotalEnergies was also highlighted; it will include investment in gas from five oil fields, producing 600 million standard cubic feet of gas daily and 210,000 barrels of crude oil daily. Additionally, the project includes the use of seawater for injection and avoiding river water usage, as well as the construction of a 1,000-megawatt solar power station, the largest in Iraq.

(Source: Ministry of Oil)

By John Lee.

Iraq's Ministry of Oil has issued a "clarification" on its previous statement regarding involvement of Saudi Aramco in the Akkas field in Basra.

On Thursday, the Ministry originally stated that it had an agreement with Saudi Aramco to invest in the field.

Later in the day, it issued a clarification, saying that talks that took place between the Ministry of Oil and the Saudi Ministry of Energy included inviting Saudi companies to invest in the Iraqi oil and gas sector, including an invitation to Aramco to invest and participate in the development of the Akkas field.

It said the Ministry hopes to reach an agreement that enhances the prospects for cooperation between the two countries, and that Aramco is studying cooperation mechanisms in this context.

The ministry indicated that it will "announce the terms and mechanisms of the agreement in case a final agreement is reached."

(Source: Ministry of Oil)