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Iraq oil ministry signs deal to develop oil field, announces new pipeline

December 27, 2017 - Pipeline Oil & Gas Magazine

Iraq’s ministry of oil signed an agreement with Chinese company Genghua to develop an oil field east of Baghdad.

Oil Ministry Jabbar Al-Luaibi in a statement said the development of the field would help boost production to 40,000 barrels of oil per day within five years from the date of commencing.

The agreement includes the development by the Chinese company of an industrial and integrated residential city with service facilities, as well as a school, nursery and medical clinic.

The contract would oblige the contracting company to recruit a workforce with a minimum of 50 per cent from Iraqi nationals, while gradually increasing this number to 80 per cent.

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Separately, the ministry invited bids for a newly announced Kirkuk-Turkey crude export pipeline, which will replace the existing and severely damaged pipeline.

The 350-km pipeline will cross Al Fataha river and Tigris river and extend to the Fish-Khabour border area with Turkey.

Iraq’s oil ministry set Jan. 24 as the deadline for companies to submit letters of interest in building the new pipeline, the ministry said in a statement.

The new pipeline will have a capacity of more than one million barrels per day- carrying Kirkuk and additional quantity of Basra crude to reach Turkey’s Ceyhan at the Mediterranean Sea, Iraq Ministry of Oil said on its website.

The project, on a build-operate-transfer basis will also include a gas pipeline to run in parallel to part of the crude pipeline, have pumping stations, crude storage facilities and other necessary infrastructure.