Iraqi Oil Minister Hayan Abdul Ghani invited Saudi companies, led by Saudi Aramco, to participate in the development of the Crutch field.
On Thursday, May 25 (2023), the ministry published a statement explaining that the discussions with the Saudi Ministry of Energy included inviting Saudi companies to invest in the oil and gas sector.
The statement also included inviting companies to invest and participate in the development of the Crutch field in Anbar Province.
The Iraqi Ministry of Oil hopes to reach an agreement, which enhances the prospects for bilateral cooperation and serves the common interests between the two countries, noting that it will announce the terms and mechanisms of the agreement once a final agreement is reached.
For its part, Saudi Aramco is studying cooperation mechanisms in this regard.
Development of the crutch gas field
The Iraqi Oil Minister, Hayan Abdul Ghani, previously announced that an agreement had been reached with Saudi Aramco to contribute to the development of the Crutch gas field in Anbar Province.
During his participation in the Iraqi-Saudi Coordination Council, Hayan Abdul-Ghani said that the goal of investing and developing the Akkas gas field is to reach a production capacity of 400 million cubic feet per day.
The Iraqi Oil Minister stated that a preliminary agreement had been reached with Saudi Arabia to contribute to the investment in the Nebras project, which is one of the most important and promising strategic projects in the petrochemical industries in Iraq and the region.
The Iraqi Oil Minister had recently announced the start of gas investment operations in the Akkas field at a rate of 60 million cubic feet per day.
He pointed out that the Central Oil Company and the supporting parties were able to invest free gas from 4 wells in the crutch gas field, and pump quantities to operate the crutch gas power station to generate (90-95) megawatts.
Joint cooperation projects
Oil Minister Hayan Abdul-Ghani confirmed that the Energy Committee held many meetings, consultations and memorandums of cooperation in the fields of oil and energy, pointing to the interest of the Iraqi Prime Minister in the memorandums of understanding signed with the Saudi side.
He said, “There is an agreement to proceed with the procedures for developing the Akkas field and investing 400 million cubic meters of gas,” calling on the Saudi Ministry of Energy to participate in this file.
Hayan Abdul Ghani explained that the fifth and sixth licensing rounds have been launched, and he called on all specialized Saudi companies to participate in the two rounds, which include a number of oil fields and gas investment.
The final statement of the fifth session of the Saudi-Iraqi Coordination Council stated that the two sides agreed to strengthen relations between the two countries in various fields, especially political, security, trade, investment, cultural, educational, tourism and energy.
The two countries praised the successful efforts of the OPEC + countries to enhance the stability of the global oil market, stressing the importance of continuing cooperation and the need for all participating countries to adhere to the OPEC + agreement, in a way that serves the interests of producers and consumers to support the growth of the global economy.
electrical connection
During the work of the fifth session of the Iraqi-Saudi Coordinating Council, the Iraqi Oil Minister confirmed the completion of the economic feasibility of the electrical interconnection project between the two countries.
He explained that “the Iraqi side is ready for cooperation and joint coordination in the field of energy and oil,” according to the data seen by the specialized energy platform.
For his part, Acting CEO of the Saudi Iraqi Investment Company, Miteb Al-Shathri, announced today, Thursday, that the establishment of the Saudi Investment Fund, a new unit to invest in various sectors in Iraq, with a capital of $3 billion.
He added during the Saudi-Iraqi Coordination Council held in Saudi Arabia that the company will invest in areas including infrastructure, mining, agriculture, real estate development and financial services.
The Saudi-Iraqi company, wholly owned by the Public Investment Fund, comes within the initiative announced by Prince Muhammad bin Salman bin Abdulaziz Al Saud, the Saudi Crown Prince, last October, which includes the Public Investment Fund establishing 5 regional companies aimed at investing in each of Jordan, Bahrain, Sudan, Iraq and the Sultanate of Oman, after the launch of the Saudi Egyptian Investment Company last August, and the value of targeted investments will reach up to 90 billion riyals ($24 billion) in investment opportunities across various sectors.
Saudi Arabia and Iraq intend to raise the pace of economic and investment cooperation between them, after the volume of intra-trade between them witnessed a 50% increase to $1.5 billion in 2022.
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