Iraq has entered into an agreement with a consortium led by China-based Geo-Jade Petroleum Corp and Basra Crescent to advance an integrated energy project at the Tuba oilfield in South Basra. The initiative aims to increase the oilfield’s production capacity from 20,000 to 100,000 barrels per day, enhancing Iraq’s energy output.

Iraq's Oil Minister Hayan Abdel-Ghani attends the fifth plus and sixth licensing rounds for 29 oil and gas exploration blocks at the Oil Ministry's headquarters in Baghdad, Iraq, May 11, 2024.

The project encompasses the development of a refinery with a capacity of 200,000 barrels, alongside a petrochemical plant and a fertilizer facility. Iraq’s Oil Minister, Hayan Abdel-Ghani, highlighted the significance of the initiative: “This project marks a leap in developing the country’s oil wealth.” The comprehensive plan is designed to bolster Iraq’s energy infrastructure and support its economic growth.

Geo-Jade Petroleum has committed approximately $848 million to the South Basra project, as announced by the company on Friday. This investment underscores the consortium’s dedication to expanding Iraq’s energy sector through strategic development.

In addition, Geo-Jade Petroleum secured contracts last year to develop the Jabal Sanam oil field and the Zurbatiya oil and gas field, further strengthening its role in Iraq’s energy landscape. These efforts align with Iraq’s ongoing initiatives to optimize its natural resources.

Iraq remains a key player in global energy markets, holding its position as the second-largest producer within the OPEC+ alliance, which includes the Organization of the Petroleum Exporting Countries and partners such as Russia. The South Basra project is poised to contribute significantly to the nation’s energy production capabilities.