PM: We will sign a contract to establish the Al-Faw refinery with a Chinese company

Baghdad - INA

Prime Minister Muhammad Shia Al-Sudani announced today, Thursday, the agreement with Abu Dhabi Ports on a partnership to operate Al-Faw Port, while indicating the signing with a Chinese company of a contract to establish Al-Faw Refinery.

The Prime Minister’s Media Office said in a statement received by the Iraqi News Agency (INA): “Prime Minister Muhammad Shiaa Al-Sudani met with major American companies specialized in the field of oil and gas, within a round table set up by the Arab-American Bilateral Chamber of Commerce in the city of Houston, in the state of Houston, Texas, as part of his official visit to the United States of America.

The statement added, “Al-Sudani reviewed the government’s program and its goals towards optimal investment in oil and gas, its future vision, a review of the most prominent strategic projects being implemented in Iraq, as well as investment opportunities for specific projects, and the promotion of the fifth complementary and sixth round, which includes 30 oil and gas fields and a gas exploration patch in Anbar, Nineveh, Diwaniyah, Najaf and Samawah.

Al-Sudani announced, “The application for the fifth and sixth round supplements has been extended by two weeks, to give the opportunity to companies wishing to apply,” stressing that “Iraq is witnessing a stable security situation throughout.” He called on "American companies to engage in partnerships with the Iraqi private sector, which receives the attention and support of the government," pointing to "the comprehensive development that Iraq is witnessing in all sectors."

Al-Sudani said in the roundtable meeting: “We came up with a vision for the shape of the relationship with the United States, after the understandings and the meeting with President Biden, that it be based on partnership and openness in all fields,” indicating that “our vision is based on mutual interests, and will be strongly present through joint work.” “Especially the presence of companies and investment in opportunities in Iraq.”

He stressed, "Iraq is of great importance in the energy market in terms of production and reserves, and the difficult circumstances and previous challenges prevented it from reaching the stage of optimal investment of wealth," pointing out, "We have recently been approaching self-sufficiency in the oil derivatives that we have been importing during previous years." .

Al-Sudani continued, "Our government began with a new idea of ​​exploiting wealth, by increasing production capacity, investing in associated gas, and going into manufacturing industries in petrochemicals and fertilizers," noting, "A plan has been drawn up to convert 40% of our exports into oil derivatives."

He stated, “Importing gas costs us $4 billion annually, while we burn the equivalent of 1,300 million standard cubic feet, with its negative effects on the environment.” He explained, “Our plan is to stop burning gas through the important contract with Total.” “It is a strategic step, and we encourage Honeywell and all companies to implement these contracts.”

Al-Sudani continued, “We are working on implementing a 1,000 MW solar energy station, in addition to a water injection project for wells,” noting, “The fifth round includes projects implemented by the Emirati company (Al-Hilal) and a Chinese company, in addition to the national effort, and we plan to reach 2,400 million feet standard cube during this specific period.

He stated, "We are presenting specific projects, including projects attached to the fifth and sixth rounds, and we will extend the period to 15 days, to provide the opportunity to apply for the rounds.".

He pointed out, "The sixth round includes patches and fields rich in free natural gas, confirming the start of presenting (integrated projects), including oil extraction, associated gas investment, and the establishment of a power station, refinery, and petrochemical industries."

He pointed out that "opportunities for integrated projects are presented in the Dima fields in Maysan, Ibn Omar in Basra, the Amara and Al-Kumait fields in Maysan, and exploration blocks in Dhi Qar," noting that "there are opportunities to establish complexes for petrochemicals and fertilizers in Karbala and a petrochemical complex." Al-Faw and the Nebras project, after Shell apologized due to a new approach taken by the company to focus on gas projects.”.