Iran, Iraq to Further Expand Cooperation in Oil, Gas Sector
During the meeting, Owji said that Iran and Iraq are the large holders of hydrocarbon reserves and joint projects in this sector will be in their interests.
He added that Iran and Iraq have a common stance on OPEC and OPEC+ policies, expressing his gratitude to Abdel-Ghani for supporting the alliance’s production cuts aimed at stabilizing oil prices.
Strong historical and religious bond exists between the two nations, Owji said, adding Iran’s 13th administration is seeking to expand relations with neighboring countries, particularly Iraq.
Abdel-Ghani, for his part, referred to the stance Iraq adopted in the recent OPEC+ meeting, and said the coalition’s decision helped stabilize oil prices and was to the advantage of producers, consumers, and even investors.
He added Iraqi Prime Minister Mohammed al-Sudani attaches great importance to the development of relations with Iran.
Iranian companies can participate in different projects in Iraq, including joint fields’ development projects, Abdel-Ghani said.
He referred to offshore and onshore exploration blocks as an area for Iranian knowledge-based companies’ cooperation with Iraq, saying that investment in gas production and oil refinery projects is also among potential fields for mutual cooperation.
Iranian Deputy Oil Minister for Gas Affairs Majid Chegeni said in November that Iran has decided to extend the contract for exports of gas to Iraq, adding that a working group is due to be formed to this end.
Iran and Iraq have agreed to form a working group on gas exports to the power plants in Baghdad, Chegeni said, adding that the group which is comprised of Iranian and Iraqi experts will work on the extension of the contract before the end of 2023.
Referring to a meeting between Owji and Iraqi Minister of Electricity Ziyad Ali Fazel in Tehran at the time, Chegeni underlined the two countries’ willingness to develop ties in the gas sector.
Iran has been meeting a major part of Iraq’s energy needs for long years, he said, adding Baghdad is eagerly seeking to extend the gas contract.
Iraq imports electricity and gas from Iran that total between a third and 40% of its power supply, especially crucial in sweltering summer months when temperatures can top 50 Celsius (122 Fahrenheit) and power consumption peaks.
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