The Iraqi Ministry of Oil stated that it had signed the contracts for the fifth supplementary and sixth licensing rounds in the final form.
The ministry said in a statement, “Under the patronage and presence of the Deputy Prime Minister for Energy Affairs and Minister of Oil, Hayan Abdul-Ghani Al-Sawad, the Ministry of Oil signed, in the final form, the contracts for the fifth complementary and sixth licensing rounds with the winning companies.”
The Minister of Oil said, “The Ministry spent today signing contracts to develop oil and gas fields and exploration blocks located in a number of governorates with the winning companies,” noting that “the development operations will add production capacities estimated at (800-850) cubic meters (million standard cubic feet) of Gas and (750) thousand barrels of crude oil.”
He pointed out that “this comes within the government program and the directives of Iraqi Prime Minister Muhammad Shiaa Al-Sudani to increase investment in the gas sector and achieve sustainable economic development.”
Iraqi Prime Minister Muhammad Shiaa Al-Sudani affirmed the Iraqi government’s commitment to what was agreed upon in the OPEC group and its allies regarding voluntary cuts and compensation for the increase in production.
The Sudanese Minister of Oil, Hayyan Abdel-Ghani, informed him of the importance of strengthening partnership with oil-producing countries with the aim of maintaining the stability and balance of global oil markets.
During the meeting, Al-Sudani pointed out the government’s plans in the field of developing the oil and gas sectors, and developing their projects within the government program through licensing rounds, in addition to investing in associated gas projects and oil derivatives production projects.
The Iraqi Oil Minister added, “The Ministry has large and promising plans to develop exploratory patches and undeveloped discovered fields in upcoming rounds to increase the country’s oil and gas reserves.”
Abdul Ghani pointed out that “these promising projects will provide fuel for electric power generation plants, petrochemical industries, and other industries, as well as provide great job opportunities for Iraqi graduates, labor, and craftsmen in different governorates by working with foreign companies or with the private sector.”
Source: RT
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**Interview with Hayan Abdul-Ghani Al-Sawad, Deputy Prime Minister for Energy Affairs and Minister of Oil, Iraq**
**Editor:** Thank you for joining us today, Minister Al-Sawad. The recent signing of the contracts for the fifth supplementary and sixth licensing rounds is a significant milestone for Iraq’s oil sector. Can you explain what these rounds entail and their importance for the Iraqi economy?
**Minister Al-Sawad:** Thank you for having me. The fifth and sixth licensing rounds are essential steps in our strategy to enhance oil and gas production in Iraq. By signing these contracts, we aim to develop various oil fields and exploration blocks across several governorates. This endeavor is critical not only for increasing our production capacity but also for bolstering our economy and creating job opportunities for our citizens.
**Editor:** You mentioned the development operations adding an estimated production capacity of 800,000 barrels per day. How do you envision this impacting both the domestic and international markets?
**Minister Al-Sawad:** Absolutely, the anticipated increase in production capacity will significantly benefit both local and global markets. Domestically, it will ensure energy security and enable us to meet the growing demands of our economy. Internationally, it positions Iraq as a more competitive player in the oil market, allowing us to contribute effectively to global energy supply.
**Editor:** What challenges do you foresee in the implementation of these contracts, and how does the ministry plan to address them?
**Minister Al-Sawad:** Like any major development project, we may face challenges, including security concerns, infrastructure limitations, and environmental considerations. However, we are committed to collaborating closely with the winning companies and local authorities to mitigate these risks. Our focus will be on effective project management and sustainable practices.
**Editor:** Lastly, Minister Al-Sawad, how do you perceive the role of foreign companies in these licensing rounds, and what message do you have for potential investors?
**Minister Al-Sawad:** Foreign companies play a vital role in the technological advancement and investment in Iraq’s oil and gas sector. We encourage them to see Iraq as a land of opportunities and to participate in our development initiatives. Our government is dedicated to creating a conducive environment for investment, and we welcome partnerships that will enhance our industry and benefit our people.
**Editor:** Thank you, Minister Al-Sawad, for sharing your insights. We look forward to seeing how these developments unfold for Iraq’s oil sector.
**Minister Al-Sawad:** Thank you for having me. It’s an exciting time for our nation, and I appreciate the opportunity to discuss our plans.
Nd how does the government plan to address them?
**Minister Al-Sawad:** Like any large-scale project, there will be challenges, including technical, logistical, and regulatory hurdles. However, we are committed to closely collaborating with the winning companies and relevant stakeholders to ensure smooth execution. Our government is also enhancing our regulatory framework to facilitate investment and tackle any potential issues proactively. Additionally, we are focusing on building local capacities to manage these projects effectively.
**Editor:** It’s also noted that the Iraqi government plans to invest in associated gas projects and oil derivatives production. How do these initiatives align with Iraq’s broader economic vision?
**Minister Al-Sawad:** These initiatives are crucial as they reflect our commitment to sustainable economic development. By investing in associated gas and oil derivatives, we aim to diversify our economy and reduce reliance on crude oil exports alone. This diversification will help stabilize our economy in the long run and create value-added products that can be used domestically and exported, generating more revenue for Iraq.
**Editor:** how do you see the role of international partnerships in achieving these ambitious goals?
**Minister Al-Sawad:** International partnerships are vital to our strategy. Collaborating with foreign companies brings in not only capital but also expertise and technology that can enhance our oil and gas industry. We are eager to strengthen these ties to ensure that we are leveraging the best practices and innovations in the sector. These relationships will be pivotal in achieving our production and sustainability objectives.
**Editor:** Thank you for your insights, Minister Al-Sawad. It sounds like an exciting time for Iraq’s energy sector. We appreciate your time today.
**Minister Al-Sawad:** Thank you for having me. I look forward to sharing further progress and developments in the near future.
