Iraq calls on foreign companies to bid for gas exploration
The gas field of Siba in Basra, Iraq. Photo: Reuters
Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil called on foreign companies on Sunday to bid for contracts to explore and develop natural gas reserves in 11 new blocks, according to a statement issued by the Oil Ministry.
The step is part of Iraq’s endeavors to produce much-needed natural gas in power plants and reduce gas imports that affect the country’s budget.
The statement illustrated that eight of the gas exploration blocks are located in Anbar governorate in western Iraq; one block is located in the city of Mosul in northern Iraq; another one is located between Anbar and Mosul; and the last one is between Anbar and Najaf in central Iraq.
The ministry added that it had completed the required preparations to issue the licenses for gas exploration without specifying a date for the submission of bids.
Iraq, the second largest producer in the Organization of the Petroleum Exporting Countries (OPEC) after Saudi Arabia, wastes a large quantity of its gas in oil extraction operations due to the lack of facilities to convert it into fuel and instead relies on gas imports from Iran to generate electricity.
The United States exerts pressure on Baghdad to reduce its dependence on gas imports from Iran.