Iraq Partners with UAE’s Crescent Petroleum to Develop Three Oil and Gas Fields

In a significant move to bolster its energy sector, Iraq has entered into three contracts with the United Arab Emirates’ Crescent Petroleum. These agreements aim to develop oil and gas fields located in Iraq’s eastern and southern regions. This development holds the promise of reducing gas flaring, increasing electricity generation, and boosting Iraq’s energy independence.

Iraq, a member of the Organisation of the Petroleum Exporting Countries (OPEC), possesses substantial oil and natural gas reserves. However, the country has grappled with the challenge of gas flaring, the wasteful burning of associated natural gas during oil extraction. This practice not only leads to resource wastage but also contributes to environmental concerns.

The contracts with Crescent Petroleum mark a critical step toward addressing this issue. The company, based in Sharjah, is set to produce a substantial volume of natural gas, potentially reducing Iraq’s reliance on gas imports. This processed gas will be utilized for electricity generation, thus enhancing Iraq’s energy independence.

Crescent Petroleum, which finalized the three 20-year contracts in February, has committed to producing 400 million standard cubic feet of natural gas daily within 18 months. This achievement will have a transformative impact on Iraq’s energy landscape, aiding the nation in meeting its electricity demands and significantly reducing gas flaring.

Hayan Abdul Ghani, Iraq’s Oil Minister, expressed optimism about the collaboration. He underscored the importance of preventing gas flaring and utilizing processed gas for electricity generation. This not only contributes to Iraq’s energy security but also aligns with global sustainability efforts.

The agreements between Iraq and Crescent Petroleum are poised to deliver economic benefits. By generating electricity from processed gas, Iraq can meet its growing energy demands and reduce its dependence on gas imports. This shift is expected to stimulate economic development, particularly in the regions of Diyala and Basra.

Abdulla al Qadi, the Executive Director of Exploration and Production at Crescent Petroleum, emphasized the significance of this partnership. He stated, “These new projects will deliver much-needed gas to generate electricity in Iraq and create thousands of new jobs that will boost the economy and contribute to the country’s economic development.”

These contracts are part of Iraq’s broader strategy to harness its oil and gas resources. The country has been actively engaging international oil companies to assist in the development of its energy reserves. This initiative aligns with Iraq’s ambitions to enhance its energy self-sufficiency and strengthen its energy sector.

As the second-largest producer in OPEC, Iraq is poised to play a pivotal role in the global energy landscape. These collaborations are expected to provide not only economic benefits but also a pathway to sustainable energy practices.

Iraq’s burgeoning population and increasing electricity demand pose significant challenges. The nation’s power generation capacity currently falls short of its requirements, leading to power shortages and reliance on costly and environmentally detrimental private diesel generators.

Saudi Arabia’s recent connection platform inauguration with Iraq presents a promising solution to Iraq’s energy needs. This platform will facilitate the exchange and trade of electric power between the Gulf region and Iraq, supporting Iraq’s efforts to meet its growing demand for electricity.

The International Energy Agency predicts that Iraq’s electricity demand will double from 2019 to 2030. As the country’s population continues to grow, the demand for electricity will surge, requiring strategic energy solutions.

Iraq‘s collaboration with Crescent Petroleum signifies a crucial step in its journey toward energy self-sufficiency and reduced gas flaring. By harnessing its oil and gas resources, Iraq aims to address its energy challenges, meet its growing electricity demand, and boost its economy. The contracts with Crescent Petroleum reflect the nation’s commitment to enhancing its energy sector and advancing sustainable energy practices.

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