Iraqi Oil Minister Basem Mohammed Khudair al-Abbadi inaugurated the central gas processing plant at the Al-Fayhaa oilfield on Friday, in a move the ministry said is part of government plans to boost oil and gas production and support the national economy.
According to a ministry statement, the new plant will help raise gas output and improve the use of associated gas resources, with wider benefits expected for public services and industrial sectors.
New output capacity for gas and LPG
The minister said the plant will increase gas production by 92 million standard cubic feet per day, and will also produce 9,800 barrels per day of liquefied petroleum gas (LPG), equivalent to about 840 tonnes per day.
He added that the ministry has recorded several achievements in the gas sector and that work continues to expand gas investment and raise crude oil production to support economic and industrial development.
Officials and company representatives attend
The inauguration was attended by Basra Governor Asaad al-Eidani, along with senior officials from Basra Oil Company, the South Refineries Company, the Iraqi Oil Tankers Company, the Reservoirs and Field Development Department, the Planning and Follow-up Department, and Chinese company UEG.
Basra Oil Company Director General Basem Abdulkarim said the company is working closely with foreign contractors to ensure projects are completed on schedule and to help raise production in support of the national economy.
Social projects in oil-producing areas
The minister said the ministry is continuing service and community projects in oil-producing areas in coordination with local authorities and lawmakers from Basra.
He said investment in oil and gas resources must be accompanied by projects that serve communities living near the fields, adding that this approach is part of the ministry’s programme and ongoing coordination with local government.
Focus on infrastructure and public services
He said the ministry wants all provinces to benefit from oil and gas development, arguing that this would improve economic conditions across the country.
He also said social benefit projects should receive greater attention in order to improve local services, and noted that the ministry is working with local authorities to address water-related issues in Basra.
Toward gas self-sufficiency and higher exports
The minister said the ministry aims to achieve gas self-sufficiency and increase production and export capacity.
He said the new central gas processing plant at Al-Fayhaa has a capacity of 130 million standard cubic feet per day, while the field’s oil output capacity stands at 100,000 barrels per day.
He added that UEG is investing in three major southern assets: the Al-Fayhaa field, the Seba gas field and the Faw exploration block. Early exploration in Faw, he said, has shown signs of both oil and gas, which he described as a positive development for Iraq.
Oil exports reach 2 million barrels per day
At a joint press conference with Basra Governor Asaad al-Eidani, the minister said Iraq’s oil exports have reached 2 million barrels per day since the start of August.
He said there are currently four oil tankers carrying Iraqi crude for export, and that July exports reached about 49 million barrels.
He added that the Oil Ministry, SOMO, Basra Oil Company and other entities are making exceptional efforts to maximise exports.
Diversifying export routes
The minister said Iraq’s strategy, together with the government, is based on diversifying export routes, noting that the Strait of Hormuz remains an important route alongside Ceyhan.
He said a consortium involving Chevron and Qatar’s UCC will build a pipeline from Basra to Fishkhabur, with an extension from Haditha to Baniyas. The project, he said, will help supply all refineries and further expand exports through Ceyhan and Baniyas.
Conclusion:
The opening of the central gas processing plant at Al-Fayhaa reflects Iraq’s ongoing push to expand gas utilisation, raise oil output and strengthen export infrastructure. With exports said to have reached 2 million barrels per day in early August, the ministry is also pushing community projects and broader investment in oil-producing areas, especially Basra.
