Aramco Eyes Major Opportunity In Iraq

Aramco Eyes Major Opportunity In Iraq

Following the recent China-brokered resumption of relationship deal between historical enemies Saudi Arabia and Iran, a deal for the Kingdom to develop two key projects in Iran’s close ally Iraq is in the offing. The problem with this idea is that it is dependent on two highly unpredictable elements. The first is the degree to which senior Iraq Oil Ministry officials are willing to put the interests of their country ahead of their own. The second is the U.S.’s on the whole thing.

The deal – which was announced as definite and then as subject to further ratification – comprises one big idea and two smaller ones that support it. The big idea is for Iraq to take the next step in genuinely building out its gas sector. The other two ideas are first that towards this end, Saudi Aramco develops the giant Akkas gas field, and second that the resultant gas goes towards the build-out of the long-delayed Nebras Petrochemical Project, all of which are analysed in my new book on the new global oil market order.

To briefly recap some of the salient points here: official estimates are that Iraq’s proven reserves of conventional natural gas amount to 3.5 trillion