Crescent Petroleum said it will develop two fields in Diyala province
Photo for illustrative purposes only. - KT file
Iraq signed a deal with UAE firm Crescent Petroleum on Tuesday for the development of two gas fields in Diyala province to supply nearby power plants.
The Gilabat-Qumar and Khashim fields are expected to begin producing 250 million standard cubic feet per day of natural gas within 18 months, the company said.
Crescent Petroleum also plans to explore and develop a third block in Basra province to add further supplies of oil and gas.
An oil ministry source said that Iraq has also signed deals with two Chinese companies focusing on gas exploration.
"These are very important deals that will boost Iraq's plans to utilise its huge gas reserves not only to meet its domestic consumption, but also to become a major gas exporter," the source added.
Oil Minister Hayan Abdel-Ghani during the signing ceremony also said a crude licensing round would be announced soon, state news agency INA reported.