An oil contract linking Russia to Iraq for three decades

9/9/19 17:20


Baghdad recently signed a contract with a Russian company for the exploration, development and production of oil in energy fields located in Anbar province, and the duration of the contract is 34 years.
According to a statement issued by the Ministry of Oilreceived all the news agency of Iraq [where] a copy of it, that the contract signed with the company "Stroy Trans Gas Oil", includes the exploration, development and production of the No. 17 in Anbar province in western Iraq.
For his part, said Iraqi Oil Minister, Thamer Ghadhban, that preliminary studies and information indicate the existence of oil reserves ranging between 2-4 billion barrels of oil equivalent and gas accounts for 60% - 70% of reserves.
Ghadban stressed, "The importance of this project in promoting oil and gas activity in this province, which contributes to enhance the economic and developmental reality and provide employment opportunities, as well as support the local private sector through secondary contracts."
For his part, spokesman of the Iraqi Ministry, Asim Jihad, said that the contract with the company, includes exploration, development and production on an area of ​​12 thousand square kilometers.
He added that the contract period is 34 years, including 9 years for the exploration phase and 25 years for the development and production phases.
The representative of the Russian company stressed his company's keenness to strengthen and increase the volume of cooperation in the field of oil with Iraq, stressing that this contract will contribute to achieving the goal, and that his company will work to develop this exploration area, and to achieve the common goals of both sides.
Stroy Trans Gas Oil is not the only Russian company that cooperates with Iraq in the field of oil and gas. In the world, with proven reserves of about 14 billion barrels.
Iraq is the second largest producer of crude oil in the Organization of Petroleum Exporting Countries (OPEC) after Saudi Arabia, and the average oil production in this country, which needs to develop its infrastructure, about 4.7 million barrels of crude per day.
It is noteworthy that Moscow and Baghdad today celebrate the 75th anniversary of the establishment of diplomatic relations between them.