Iraq Signs Contract to Develop and Operate Ajil Oil Field

Iraqi PM's Media Office

Photo from the signing ceremony.

Iraqi Prime Minister Ali al-Zaidi has overseen the signing of a 25-year contract between the Northern Oil Company and KEPT to develop and operate the Ajil oil field, as part of government efforts to boost oil and natural gas production and strengthen the country’s energy security.

The agreement forms part of the Oil Ministry’s strategy to maximise the use of Iraq’s hydrocarbon resources, increase crude oil and natural gas output, and improve the utilisation of oil and gas fields.

The Prime Minister’s Media Office said the signing of the contract forms part of the Oil Ministry’s efforts to maximise the use of Iraq’s hydrocarbon resources, increase oil and gas production, and improve the utilisation of oil and gas fields, while strengthening energy security and support the country’s electricity generation system.

The office explained that the agreement will raise the field’s gas production from 135 million cubic feet per day to 300 million cubic feet per day, while increasing oil output from 30,000 barrels per day to 40,000 barrels per day.

In March, Iraq’s oil ministry announced plans to increase oil production from four million to six million barrels per day between 2028 and 2029.

In early August, al-Zaidi said that 2027 "will be a year of doubling electricity production," directing the electricity ministry to maintain a domestic production capacity of 30,000 megawatts and to import tens of thousands of megawatts of additional energy from abroad.

Iraq plans to generate 12,000 megawatts from renewable sources by 2030, aiming to ease pressure on the national grid. On peak summer days, demand may reach over 55,000 megawatts while supply remains substantially lower, highlighting the urgent need for new solutions.



PUKMEDIA