Iraq is poised to save nearly $17 billion annually through a series of large-scale gas development projects awarded to energy majors such as BP and TotalEnergies, according to a senior government official.
The savings will be achieved by significantly reducing gas flaring during oil production at key oilfields—an issue that has long plagued Iraq’s energy sector. Turning this wasted resource into a valuable asset marks a major step toward energy efficiency, environmental protection, and economic sustainability.
“Iraq has made noticeable progress in reducing gas flaring and turning produced gas into efficient investment,” said Izzat Ismail, Undersecretary for Gas at Iraq’s Oil Ministry, as quoted by the official Iraqi News Agency. “This will contribute to saving nearly $17 billion a year, improving the environment, and creating jobs for Iraqis.”
According to Ismail, Iraq’s gas utilization rate has steadily increased—from 53% in 2022 to nearly 60% in 2023, and 68% in 2024. The current utilization rate now stands at 70%, and is projected to rise sharply in the coming years as new gas capture and processing facilities come online.
A key contributor is TotalEnergies, which has begun development of the Artawi gas field in Basra province as part of the $10 billion Gas Growth Integrated Project (GGIP). The project aims to produce 600 million cubic feet per day and is being executed by a consortium that includes TotalEnergies (45%), Basrah Oil Company (30%), and QatarEnergy (25%).
Meanwhile, BP has launched efforts to boost production in four oilfields in the Kirkuk region under a recently signed agreement. The contract includes increasing oil output to 420,000 barrels per day, raising gas production to 400 million cubic feet per day, and building a 400-megawatt power plant.
“We believe that by the end of 2027, Iraq will completely eliminate gas flaring,” Ismail added. “Within the next five years, Iraq will no longer need to import gas, and by 2030, we expect to begin exporting gas.”
As OPEC’s second-largest oil producer, Iraq holds an estimated 145 billion barrels of proven crude reserves and 3.5 trillion cubic meters of natural gas—resources it now seeks to utilize more efficiently for long-term energy and economic security.