عربي
Eco

Ajil Oilfield Set for Major Expansion Under 25-Year Development Contract

admin 5 hours ago
Ajil Oilfield Set for Major Expansion Under 25-Year Development Contract

Iraq’s Ajil oilfield in Salah al-Din province is set to enter a new phase of development following the signing of a 25-year operation and development contract between North Oil Company and “KIPET”, under the patronage of Prime Minister Ali Al-Zaidi.

The project aims to gradually increase crude oil production from around 30,000 barrels per day to 40,000 barrels per day, while gas output is expected to rise from approximately 135 million standard cubic feet per day to 300 million standard cubic feet per day.

A key component of the development plan is the utilization of associated gas produced during oil extraction. The project also includes upgrading existing infrastructure and developing additional processing and transportation facilities to accommodate the higher production levels.

The Oil Ministry said the development forms part of broader efforts to increase crude production while maximizing the use of associated gas, reducing flaring and converting the resource into usable fuel for power generation and industrial activities.

The targeted increase in gas production is expected to provide additional supplies to Iraq’s energy network, with the gas also offering potential for the production of liquefied gas and condensates, expanding the project’s economic value beyond crude oil revenues.

Technical studies are also expected to assess whether existing facilities can handle the additional gas volumes and determine the need for new infrastructure or upgrades to facilities operated by North Gas Company.

Once the targeted production levels are reached, Ajil is expected to add around 10,000 barrels of crude oil per day and approximately 165 million standard cubic feet of gas per day to Iraq’s domestic output.

With the contract extending over 25 years, the development can be implemented in stages, while achieving the projected returns will depend on completing the necessary infrastructure and ensuring that the additional gas is efficiently and sustainably utilized.