Iraq, Key Player in the Global Energy Market

Iraq, Key Player in the Global Energy Market

Published about 2 months ago at 04 June 2024

Iraq continues to solidify its position as a major force in the global energy market with several significant crude oil projects. Below is a detailed look at the key projects and developments scheduled for the coming years.


Major Projects and Capacity Expansions:

  1. Majnoon Field
  2. Operator/Investor: Basra Oil Company
  3. Additional Capacity: 200 thousand barrels per day (b/d)
  4. Announced Start Date: End 2023
  5. Notes: Shell exited field ownership in 2018.
  6. West Qurna-1 Field
  7. Operator/Investor: ExxonMobil and Basra Oil Company
  8. Additional Capacity: 330 thousand b/d
  9. Announced Start Date: 2028
  10. Notes: Iraq awarded a drilling contract to Schlumberger, but delays are expected due to disputes and uncertainties.
  11. Zubair Field
  12. Operator/Investor: ENI
  13. Additional Capacity: 50 thousand b/d
  14. Announced Start Date: End 2024
  15. Notes: Future expansions will require more water injection.
  16. Ratawi Field
  17. Operator/Investor: TotalEnergies
  18. Additional Capacity: 130 thousand b/d
  19. Announced Start Date: 2025
  20. Notes: Field expansion is part of TotalEnergies' $27 billion deal with Iraq, finalized in July 2023.
  21. Eridu Field
  22. Operator/Investor: Lukoil
  23. Additional Capacity: 250 thousand b/d
  24. Announced Start Date: 2028
  25. Notes: Pilot phase will produce 30,000 b/d from 2025 to 2028, with peak production target set for 250,000 b/d.
  26. Fields in Dhi Qar Province
  27. Operator/Investor: Dhi Qar Oil Company (DQOC)
  28. Additional Capacity: 310 thousand b/d
  29. Announced Start Date: 2028
  30. Notes: Ongoing negotiations with Chevron for exploration and development. No progress as of September 2023.
  31. West Qurna-2 Field
  32. Operator/Investor: Lukoil
  33. Additional Capacity: 330 thousand b/d
  34. Announced Start Date: 2030
  35. Notes: Capacity expansion includes Yamama reservoir. Pilot project began in 2021, producing 30,000 b/d as of October 2023.
  36. Missan Cluster (Bazergan, Fakka, and Abu Gharb Fields)
  37. Operator/Investor: China’s CNOOC
  38. Additional Capacity: 100 thousand b/d
  39. Announced Start Date: November 2022
  40. Notes: CNOOC expanded the Missan Cluster’s capacity to 300,000 b/d in November 2022.
  41. Faihaa Crude Oil Processing Facility
  42. Operator/Investor: China’s United Energy Group
  43. Additional Capacity: 100 thousand b/d
  44. Announced Start Date: H2 2024
  45. Notes: Located near the Iran border, plans include expanding Faihaa field capacity from 50,000 b/d to 130,000 b/d.


Economic Impact and Future Prospects

The planned expansions and developments in Iraq's oil fields underscore the country's critical role in the global energy market. These projects not only aim to increase production capacity but also address technological and logistical challenges, such as water injection requirements and the integration of advanced drilling techniques.


Challenges and Considerations

While these projects present significant opportunities, they also come with challenges, including political instability, regulatory delays, and the need for substantial infrastructure investments. The ongoing negotiations and potential delays highlight the complex landscape in which Iraq operates.


Conclusion

Iraq's ambitious plans to expand its crude oil production capacity reflect its commitment to maintaining and enhancing its position in the global energy market. By overcoming existing challenges and successfully executing these projects, Iraq can ensure sustained economic growth and stability, reinforcing its pivotal role in the global energy sector.


Sources

  • Middle East Economic Survey
  • FACTS Global Energy Services
  • Rystad Energy
  • Al Arabiya News
  • Company Websites
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