Iraq stands poised to rebuild and revitalise its energy infrastructure. Embracing a vision that balances the crucial role of hydrocarbons with the imperative of reducing emissions and flaring while improving food and energy security. Iraq is charting a path towards a sustainable and prosperous future.
Central to this endeavour is the careful consideration of what is best for Iraq's people and its economy. After enduring decades of challenges, it is paramount to ensure that every decision made serves to uplift and empower the Iraqi people.
In this article Nimit Shah, Regional Vice President, Middle East & Africa at KBR, explores how this can be achieved – and the role that industry expertise from elsewhere in the world can play.
Progressing the energy transition
Restoration of oil and gas assets has played a huge role in the economic recovery of Iraq, and represents over 90% of its GDP. It has also helped to ensure the operation of critical infrastructure such as schools and hospitals, but the Iraqi government recognises the need to decarbonise and has targeted dramatic reductions in emissions levels by 2030. The elimination of gas flaring is central to these ambitions and has led to notable work. This includes a project at the Rumaila Field where targets have been set to bring carbon emissions from gas flaring to below 100 mmsfcd by 2025.
Instead of flaring, this gas can be gathered and processed so that it is suitable to be sold on, or even injected into oil reservoirs to raise the pressure for extraction. Steps must be taken in this case to prevent gas from being vented into the atmosphere as methane, and the Iraqi government aims to reduce such emissions by 30% by 2030.
The country is also making strong headway in renewables, something that was highlighted last year by the EU and Iraq signing a Joint Declaration which will see the two parties “deepen and intensify cooperation” regarding sustainable development and the green transition. Iraq has stated it intends to generate around 25% of its energy from green sources by 2030 – around 12 GW in total – and in 2022 made $750m available via low interest loans to fund solar initiatives. An increase in renewable power will also be crucial in driving growth in green hydrogen and ammonia production, with targets set to produce 800 tonnes of green hydrogen a year by 2030.
The economic benefits of these projects are substantial, as they can help Iraq diversify its economy, create new revenue streams and make effective use of its abundant renewable natural resources.
Empowering local talent and driving progress
It’s critical that the positive work on Iraq’s energy infrastructure must be done in a way that provides sustainable skills for local people – whilst making good use of subject matter expertise from other countries. This should be done in a way that helps to pass on knowledge and skills.
At KBR we are proud to have been supporting the development of Iraq since the early 1970s and have been able to make a significant impact in developing a skilled local workforce. Our team in the country is composed of 50% Iraqi nationals, meaning we can offer a blend of necessary skills in areas such as emissions reductions, gas monetisation and green ammonia production whilst passing this knowledge on to Iraqi people.
A case in point here is the Majnoon Oil Field project. From the start of our work here we made supporting the local workforce a key priority. We awarded contracts to local construction companies, and employed many Iraqi nationals in senior field and site management positions, as well as a wide array of engineering positions.
Striking the right balance
Whilst Iraq is blessed with excellent natural resources of both hydrocarbons and renewables, its path to restoring infrastructure and progressing its energy transition will need expertise and technology from beyond its borders.
The critical role oil and gas plays in its economy means a careful path must be found, with the elimination of gas flaring and reduction in methane emissions a welcome first step. Beyond this, the country is establishing a promising approach to green hydrogen and ammonia production that can not only help to further minimise carbon emissions, but also reduce its economic reliance on hydrocarbons.
Collaboration with experienced international companies will be key to ensure all this is achieved – but above all this must respect the need to nurture local talent and help to grow Iraq’s own skills base and allow it to become more independent as new projects are announced and implemented.
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