Iraqi state-owned Midland Oil Company has signed an initial agreement on Monday with the consortium of the Chinese company Gereh and Petro Iraq to develop the Mansouriya gas field in Diyala province.

The Ministry of Oil released a statement on Monday quoting the Deputy Minister for Extraction Affairs, Basim Muhammad Khudair, as saying that “this contract is part of the Ministry of Oil's efforts to utilize gas, following the signing of a contract to develop the Akkas gas field.”

The ministry is working to close the gas flaring file and complete ongoing projects, in addition to investing in gas fields and activating contracts from the fifth supplementary and sixth licensing rounds, which have resulted in the allocation of 13 fields across 10 provinces.

Mohammed Yassin, General Manager of the Midland Oil Company, confirmed that the initial production target for the Mansouriya gas field development contract in Diyala Province is to reach 100 million standard cubic feet per day (MMSCFD) within 18 months, and to achieve peak production of 300 MMSCFD within 4-5 years after signing the contract.



As part of Iraq’s strategy to invest in its gas and oil resources, Prime Minister Mohammed Shia’ al-Sudani attended the contract signing ceremony for the Al-Faw Oil Refinery Project in mid-May. This project is a crucial component of the broader Grand Faw Port initiative.

The contract, signed between the Ministry of Oil/South Refineries Company and the Chinese company China National Chemical Engineering (CNCEC), underscores the government's commitment to boosting oil refining capacities, attracting foreign investments, and meeting domestic petroleum product demands.

Prime Minister Sudani launched the competitive bidding process for global companies earlier this month, targeting contracts for oil and gas exploration in Iraq's fifth supplementary and sixth licensing rounds across 12 provinces.

During the event, Sudani emphasized Iraq's crucial role in the global energy market and reaffirmed the Ministry of Oil's commitment to ending associated gas flaring within five years.

He highlighted the government's goal, set from its inception, to invest in oil and gas resources and mitigate the environmental and human impacts of gas flaring, aiming to eliminate this practice within 3 to 5 years following the completion of ongoing projects.

Alongside efforts by Iraq to boost oil exports, last Thursday, the Association of the Petroleum Industry of Kurdistan (APIKUR) expressed its member companies' readiness to resume oil exports through the Kurdistan Region.

The #US Assistant Secretary of State for Energy Resources visits to #Baghdad and #Erbil “underscore the importance of immediate and cooperative action by all stakeholders to restore exports through the #Iraq-Türkiye pipeline," APIKUR spox Myles B. Caggins III said in statement on… pic.twitter.com/pNCry2gJfn

— The New Region (@thenewregion) May 16, 2024

This announcement followed a meeting between Iraqi Prime Minister Sudani and the US Assistant Secretary of State for Energy Resources.

APIKUR spokesperson Myles B. Caggins III emphasized the need for immediate, cooperative action by all stakeholders to restore exports via the Iraq-Turkey Ceyhan pipeline.