Iraq signs major deal to boost gas production at Mansuriya field

BAGHDAD — Iraq’s Oil Minister, Hayan Abdul Ghani, attended a ceremony on Thursday marking the signing of a significant development agreement for the Mansuriya gas field in Diyala governorate. The project, a partnership with China’s JERA and Petro Iraq, is expected to increase Iraq’s gas output by 300 million cubic feet per day, according to a statement from the Ministry of Oil.

“This is a historic day for both the ministry and Diyala,” Abdul Ghani stated. “The Mansuriya gas field will contribute an additional 300 mcf/d, significantly boosting our gas production.”

The Mansuriya gas field, one of Iraq’s key resources, aims to reduce the country’s reliance on gas imports by supplying fuel directly to national power plants. “This project will bring economic and social benefits to Diyala, creating job opportunities and supporting the local economy,” Abdul Ghani added.

The minister also highlighted Iraq’s recent signing of 14 additional contracts under the fifth and sixth licensing rounds, expected to increase gas production by over 850 mcf/d and oil output by approximately 750,000 barrels per day.

Mohammad Yaseen Hasan, Director General of the Central Oil Company, underscored the importance of the Mansuriya project in strengthening Iraq’s revenue through gas investments. Initial production is set to begin at 100 mcf/d, eventually reaching 300 mcf/d to meet the fuel needs of the Mansuriya power plant. “This marks a significant development for Diyala’s energy sector,” Hasan commented.

Iraq currently imports 40 to 50 million cubic meters of gas daily from Iran to meet its energy demands. On Oct. 19, 2024, the Ministry of Electricity announced a deal with Turkmenistan to import an additional 20 million cubic meters of gas per day through an Iranian pipeline.

By 2028, Iraq plans to end gas flaring entirely, redirecting the captured gas toward enhanced electricity production, a goal reiterated by Oil Minister Abdul Ghani in a meeting with U.S. officials in September.