Iraq Doubles Down on Ajeel Oil Field Gas Production

Iraq has signed a new 25-year development contract to increase gas production at the Ajeel oil field in Saladin from about 135 million to 300 million standard cubic feet per day. This is part of Baghdad's efforts to expand domestic energy supplies, curb imports, and capture associated gas that would otherwise be flared.

Under the contract, crude output is also expected to rise from around 30,000 to 40,000 barrels per day (bpd). Deputy Oil Minister for Extraction Affairs Naseer Aziz said reaching these levels will require integrating extraction with processing and transportation, including rehabilitating existing infrastructure and adding facilities where needed.

The contract targets a gradual increase in crude output from around 30,000 to 40,000 barrels per day (bpd) and an extra 165 million standard cubic feet of gas per day at full capacity. Ajeel would yield a 122% increase in gas production alongside a 10,000-bpd rise in crude production.

Speaking about the new volumes, Deputy Minister for Gas Affairs Izzat Saber Ismail said they could enter the national network to supply power plants and industrial users, with part of the output converted into liquefied petroleum gas and condensates. However, processing remains the main challenge, and Aziz has instructed authorities to conduct a technical study to determine whether facilities operated by the North Gas Company can absorb the projected volumes or need further development.