“We hope to announce an increase of Iraq's proven oil reserves to more than 160 billion barrels,” Iraqi Oil Minister Hayyan Abdul Ghani said at the opening of the supplementary licensing round for oil and gas projects.
Ghani said that 29 “promising” projects were available for international companies to bid for across 12 provinces as well as an offshore project within Iraqi maritime territory in the Arabian Gulf.
The projects “will contribute to the economic expansion and growth of these provinces by providing employment opportunities and gradually stimulating economic activity in the surrounding areas, which will in turn lead to increased stability and employment of the workforce in those regions,” Ghani said.
The first licensing round for oil and gas projects in Iraq was in 2008. There have since been five more rounds.
“Iraq anticipates deriving more than 3,459 million standard cubic feet of gas per day and over one million barrels of oil per day from these licensing rounds,” read a statement from the office of Prime Minister Mohammed Shia’ al-Sudani.
“Our goal is to harness oil wealth by ending the flaring of associated gas within three to five years to mitigate its destructive environmental impact,” Sudani said during a speech at the licensing ceremony.
Iraq is one of the world’s worst gas flaring countries. Flaring is when oil wells burn the excess gas they can't store or use. It is a convenient way to deal with the waste product known as associated petroleum gas, however, it is damaging to the environment and public health and is a major contributor to climate change.
Oil is Iraq’s main source of income, relied on to cover government costs and pay civil servant salaries. The country pocketed $97.5 billion from oil sales in 2023, down from 2022’s record-setting $115 billion.
Currently Iraq has 145 billion barrels of proven oil reserves, according to the World Bank.