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Iraq To Spend $15 B To Boost Gas Production

OPEC's second largest oil producer is seeking to spend $15 billion to boost its gas production.

In a bid to reduce its dependence on Iranian energy imports, Iraq is seeking to spend $15 billion with certain energy partners that will help boost its gas production.

Included in the line-up of projects for this goal is Iraq's memorandum of agreement with Total which seeks to develop associated gas and solar power projects with an estimated cost of $7 billion. This MOA was signed this year and will be carried out in two phases that will include the production of 600 million cubic feet per day (MMcf/d).

A contract was awarded in April to Chinese state-owned Sinopec to develop the 4.5 trillion cubic feet (Tcf) Mansuriyah gas field in the eastern province of Diyala. According to Ihsan Ismaael, Iraq's minister of oil, the project would cost around $2.1 billion where Sinopec will have a 49% stake. Production is expected to increase from the initial 50 MMcf/d of gas to 300 MMcf/d.

Talks with some US companies are also ongoing as with other investors to develop the Akkaz gas field near the border with Syria. This was mentioned by Ismaeel at a press conference that was broadcasted by Qatari news channel Al Jazeera wherein an estimated $3 billion in investment will be used to produce 300 MMcf/d.

Ismaeel also disclosed during the press conference a $3 billion development plan for Basrah Gas Co. Basrah Gas Co., along with other shareholders such as Shell, Mitsubishi Corp. and Iraq's state-owned South Gas Co., plans to boost production from 1 Bcf/d to 1.4 Bcf/d by 2025. The ultimate target  for the plant however is to reach gas production of 2.1 Bcf/d.


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