National Iranian Drilling Company Eyes Iraqi Energy Space

State owned National Iranian Drilling Company (NIDC) has signed cooperation agreements with private Iraqi energy companies as part of its efforts to expand in Iraq, managing-director of NIDC told Shana News earlier this week.

Heydar Bahmani said the memorandum signed is a prelude for the presence of the company in Iraq’s energy industry.

He said NIDC is viewing foreign markets as a source of income for the country, adding that presence in drilling market in southern Iraq, particularly in Basra province, is an objective pursued by the company, Shana reported.

In recent years, Iran has been looking to strengthen energy ties with its neighbour. Tehran is expected to begin supplying natural gas to Iraq for power generation in May. In 2013, the two countries signed an agreement under which Iran will start pumping 4 mcm/d of gas to Baghdad and with a potential to bring it to 35 mcm/d.

Terrorist attacks by the Islamic State of Iraq and the Levant (ISIL) in Iraq have delayed the gas supply project.

Also, Iran is shortly expected to sign second gas supply deal with Iraq, according to National Iranian Gas Exports Company’s Managing Director Alireza Kameli. As per the deal Tehran will supply gas to Iraqi city of Basra in the next Iranian calendar year which starts on March 21.