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GCC, Japan Announce Resumption of Free Trade Agreement Negotiations

The GCC and Japan signed a joint statement on the resumption of Free Trade Agreement negotiations. SPA
The GCC and Japan signed a joint statement on the resumption of Free Trade Agreement negotiations. SPA
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GCC, Japan Announce Resumption of Free Trade Agreement Negotiations

The GCC and Japan signed a joint statement on the resumption of Free Trade Agreement negotiations. SPA
The GCC and Japan signed a joint statement on the resumption of Free Trade Agreement negotiations. SPA

The Gulf Cooperation Council and Japan announced on Sunday the resumption of Free Trade Agreement negotiations, by signing a joint statement on the sidelines of a meeting held by Japanese Prime Minister Fumio Kishida and the Secretary General of the GCC, Jassem Mohamed Albudaiwi, in Jeddah.

Albudaiwi said the announcement comes in implementation of the directives of the Ministerial Council to ink free trade agreements with the trade partners of the GCC countries as part of the priorities that were agreed to accomplish at its session which took place in June 2022.

He added that Japan is considered as one of the priorities of the Council Cooperation with which it seeks to bolster strategic, economic, development and investment relations.

He expressed the hope of GCC member states to consolidate trade and investment ties between the two sides through this agreement, highlighting its role in launching a new era of partnership that is aimed at providing many opportunities for joint growth for the business communities of both sides, especially in priority sectors.

Moreover, Albudaiwi pointed out that the agreement will pave the way for the development of a comprehensive economic framework based on mutual interests, which, in return, would establish stronger strategic cooperation, promote innovation, stimulate economic growth, and create job opportunities for both sides.

He emphasized the strategic and important bonds between the GCC countries and Japan in all areas, most notably the high level of political coordination, as well as cooperation in the field of energy and trade exchange, indicating that Japan ranked fourth in terms of exports from Gulf countries with a value of $76.7 billion and ranked fourth in terms of imports from the GCC, which are valued at $22 billion.

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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
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BP Nears Deals for Oil Fields, Curbs on Gas Flaring in Iraq

British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)
British Prime Minster Keir Starmer (L) welcomes Prime Minister of Iraq Mohammed Shia al-Sudani to 10 Downing Street in London, Britain, 14 January 2025. (EPA)

Iraq and British oil giant BP are set to finalize a deal by early February to develop four oil fields in Kirkuk and curb gas flaring, Iraqi authorities announced Wednesday.

The mega-project in northern Iraq will include plans to recover flared gas to boost the country's electricity production, they said.

Gas flaring refers to the polluting practice of burning off excess gas during oil drilling. It is cheaper than capturing the associated gas.

The Iraqi government and BP signed a new memorandum of understanding in London late Tuesday, as Prime Minister Mohammed Shia al-Sudani and other senior ministers visit Britain to seal various trade and investment deals.

"The objective is to enhance production and achieve optimal targeted rates of oil and gas output," Sudani's office said in a statement.

Iraq's Oil Minister Hayan Abdel Ghani told AFP after the new accord was signed that the project would increase the four oil fields' production to up to 500,000 barrels per day from about 350,000 bpd.

"The agreement commits both parties to sign a contract in the first week of February," he said.

Ghani noted the project will also target gas flaring.

Iraq has the third highest global rate of gas flaring, after Russia and Iran, having flared about 18 billion cubic meters of gas in 2023, according to the World Bank.

The Iraqi government has made eliminating the practice one of its priorities, with plans to curb 80 percent of flared gas by 2026 and to eliminate releases by 2028.

"It's not just a question of investing and increasing oil production... but also gas exploitation. We can no longer tolerate gas flaring, whatever the quantity," Ghani added.

"We need this gas, which Iraq currently imports from neighboring Iran. The government is making serious efforts to put an end to these imports."

Iraq is ultra-dependent on Iranian gas, which covers almost a third of Iraq's energy needs.

However, Teheran regularly cuts off its supply, exacerbating the power shortages that punctuate the daily lives of 45 million Iraqis.

BP is one of the biggest foreign players in Iraq's oil sector, with a history of producing oil in the country dating back to the 1920s when it was still under British mandate.

According to the World Bank, Iraq has 145 billion barrels of proven oil reserves -- among the largest in the world -- amounting to 96 years' worth of production at the current rate.