UAE’s Crescent Petroleum signs oil and gas deals in Iraq

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• Deal with Iraq’s Ministry of Oil creates thousands of jobs
• Iraq’s oil revenues exceeded $115 billion in 2022
• Exports go to countries including China, India, US, UK and Russia

Crescent Petroleum, the UAE’s privately owned upstream oil and gas company, has signed three 20-year agreements to develop new oil and gas fields in Iraq.

The deal with Iraq’s Ministry of Oil will see the company appraise, develop and produce oil and gas from two blocks in Diyala governorate and one in Basra governorate. 

The agreements will deliver natural gas to fuel nearby power plants and improve government services, creating thousands of new jobs, the company said in a statement. 

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It added that the Gilabat-Qumar and Khashim Ahmer-Injana fields in Diyala province will initially produce 250 million standard cubic feet per day of natural gas.

The Khider Al-Mai block in Basra province will be explored and developed to add further supplies of oil and gas.

Gas from the Diyala operations is expected within 18 months, said Crescent Petroleum which will build a processing plant on site as well as pipelines and infrastructure.

Abdulla Al Qadi, executive director of exploration and production at Crescent Petroleum, said: “This long-term partnership with the government of Iraq will create thousands of new jobs and support the local and national economy. 

“Gas and oil supplies from these operations will help improve services and local economic development for the people of Iraq.”

According to Opec, Iraq’s proven natural gas reserves total 3,714 billion cubic metres.

Iraq’s oil revenues exceeded $115 billion in 2022, according to figures announced last month by the oil ministry.

Over 1.209 billion barrels of oil were exported, the state-owned Iraqi News Agency said, with most of the exports going to China, India, South Korea, Turkey, Greece, the US, the UK, France, Russia, Italy, Spain and other Arab countries.

The US Energy Information Administration estimates that Iraq boasts some 145 billion barrels of proven crude oil reserves, which is nine percent of world reserves and roughly 18 percent of Middle Eastern reserves.

Crescent Petroleum is headquartered in Sharjah, with current operations in both the UAE and the Kurdistan region of Iraq.