Baghdad Wants Iranian Firms to Drill for Oil, Gas

Baghdad wants Iranian companies to drill for oil and gas in Iraq.

A high-ranking Iraqi delegation led by director general of the state-run Iraq Drilling Co. Idriss Mohsin al-Yasiri met with CEO of Iran’s North Drilling Company Hedayatollah Khademi in Tehran to discuss the issue, Mehr News Agency reported Friday.

The two countries in recent years have increased cooperation in the field of energy. Iran and Iraq have signed a gas deal under which Tehran will supply 4 mcm/d of gas to its neighbour via pipeline and with a potential to bring it to 35 mcm/d. The supply of gas was supposed to begin by end of May but with security situation in Iraq still fragile, that seems unlikely.

Iran is shortly expected to sign second gas supply deal with Iraq, according to National Iranian Gas Exports Company’s Managing Director Alireza Kameli. In an interview given to Shana News earlier this year, Kameli said Tehran will sign an agreement to supply gas to Iraqi city of Basra in the next Iranian calendar year.