Iraq Signs Long-Term Agreement for Ajil Oilfield Development

Iraq's government has signed a long-term agreement with a private company to develop the Ajil oilfield, aiming to boost crude production and tap into associated gas reserves.

The deal targets an increase in crude output from about 30,000 barrels per day (bpd) to 40,000 bpd, while also raising gas production to 300 million standard cubic feet per day from around 135 million. This is part of Baghdad's effort to expand domestic energy supplies and reduce gas flaring.

The Oil Ministry has confirmed that the development plans for Ajil include incorporating the additional gas into the national gas system, potentially using it for electricity generation, liquefied-gas production, and condensates. Officials have been examining whether existing processing infrastructure can handle the anticipated increase in gas volumes.