Iraqi Ministry of Oil sets up new policy

The Iraqi Ministry of Oil announced, Monday, the development of a program and mechanisms to invest gas and to stop its burning in 2021, noting that the policy of production will ensure the provision of large quantities of dry gas for power plants and as an important source of vital national income.

A statement by Oil Minister Jabbar al-Luaibi said that develope a policy of gas investment in the southern region as an applied model for the ministry's policy, pointing out that clear mechanisms and targets have been identified to avoid any delay in understanding the challenges and achieve the goal of stopping the burning of gas in 2021.

"The mechanisms included the construction of three central complexes in stages and can be expanded, in which Basra will recieve 600,000 cubic feet, through the activation and development of contractual obligations of foreign companies operating in the oil fields to produce dry gas and liquids and condensates," the minister stated.
 
 "The policy of production will ensure the provision of large quantities of dry gas for power plants to ensure the provision of raw material for plans to build fertilizer plants and methanol supply of ethane in quantities needed for the Nebras Petrochemicals project, one of the largest development opportunities in the country to maximize the country's ability to export liquid gas," the minister added.

Al Luaibi explained that the objectives above will achieve the basic pillars of sustainable development, which are to achieve higher stability in the energy industry and support the local industry by increasing the hours of electricity availability and provide a more attractive environment for foreign investment, in addition to creating opportunities for multiple secondary industries through the provision of heavy industries, to create employment opportunities for national employment up to three thousand jobs during the project implementation stage.
 
Meanwhile, analysts said Iran and Qatar could enter a race to produce as much of the joint field as possible. This could plunge gas-filled markets and further lower gas prices, which have lost about 65 percent of their value since mid-2014. Analysts say relations between Qatar and Iran are entering a new phase dominated by a joint oil and gas production race. This could hinder the appeasement that has dominated the relations between the two countries and end Doha's monopoly on most of the field's production for a long time.

Iranian reports said these stages require $ 20 billion in investments, as a move to speed up its faltering investment in the field 12 years ago because of international sanctions. Iranian officials have confirmed that the launch of stages 17 to 21 paves the way for Iran to exceed the levels of gas production in neighboring Qatar, which shares with the maritime field. 

Rowhani said that Iran's production from the field currently stands at about 575 million cubic meters per day, equivalent to about 65 percent of its total production of about 885 million cubic meters per day. The new stages are intended to increase gas production by about 150 million cubic meters per day.