The Iraqi government signed an agreement with the UAE firm Crescent Petroleum on 21 February to develop two gas fields in Iraq’s northeastern Diyala governorate to supply local power plants.

The UAE’s private upstream oil and gas company disclosed that the Gilabat-Qumar and Khashim gas fields are expected to produce seven million cubic meters within an 18-month span.

Crescent Petroleum management also added that it plans to explore and construct a third block in the Basra governorate, to add additional gas supplies.

According to an Iraqi oil ministry source, Baghdad recently signed gas exploration agreements with two Chinese companies.

“These are very important deals that will boost Iraq’s plans to utilize its huge gas reserves not only to meet its domestic consumption but also to become a major gas exporter,” the source remarked.

According to an INA report, the Iraqi national oil minister Hayan Abdel-Ghan revealed that the crude licensing round would be announced soon.

In recent months, Iraq has bolstered its efforts to increase its relations with Gulf states. On 19 February, Iraq and Saudi Arabia signed a Memorandum of Understanding (MoU) to share sensitive intelligence and deepen security cooperation, marking the first time the two nations have signed a security pact since 1983.

The MoU entails “all forms of security cooperation, exchange of points of views, and undertaking joint security activities,” Iraqi state media reported.

The historic MoU comes at a time when Baghdad has started to normalize ties with the Gulf countries following decades of isolation due to the 1990 Iraqi invasion of Kuwait.

The signing of the MoU between Baghdad and Riyadh comes as Iraq prepares to host bilateral discussions between Saudi Arabia and Iran to ensure regional stability.