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Saudi Industry Ministry Tables Seven New Mining Opportunities

Saudi Industry Ministry Tables Seven New Mining Opportunities
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Saudi Industry Ministry Tables Seven New Mining Opportunities

Saudi Industry Ministry Tables Seven New Mining Opportunities

The Saudi Ministry of Industry and Mineral Resources opened o Wednesday the bidding for seven new exploration licenses.

According to the ministry, the total area covered by the new licenses is close to 1,000 square kilometers.

The step is part of the ministry's Accelerated Exploration Program initiative, which aims to expedite the exploration and development of the Kingdom's estimated SAR9.3 trillion worth of mineral resources, in line with the Saudi Vision 2030 objective of making the mining sector the third pillar of the national industry.

The seven sites for which it will grant exploration licenses contain a variety of precious and base metals; among them are Umm Qasir, in the Riyadh region, with gold, silver, lead, and zinc deposits spread over 20 square kilometers, and Jabal Sabha, in Riyadh, with silver, lead, zinc, and cobalt reserves spread over 171 square kilometers.

In Aseer, Wadi Ad Dawsh contains gold, silver, and copper deposits in an area of 157.7 square kilometers. Shaib Marqan in Riyadh spans 92 square kilometers and holds gold, silver, and copper.

Wadi Al Junah in Aseer extends over 425.37 square kilometers and is a source of copper, silver, zinc, and gold. Hazm Shubat, also in Aseer, covers 93.47 square kilometers and contains gold, and Huwaymidan, in Makkah, encompasses 34 square kilometers and contains gold.

The ministry set early September 2024 as the final deadline for submitting proposals for the exploration license bids. A transparent and fair evaluation process will assess factors such as work programs, technical capabilities, social impact plans, and innovative initiatives, with 70% weight on technical aspects and 30% on community contributions.

To support exploration, the ministry has introduced new incentives, in collaboration with the Saudi Investment Ministry, including up to SAR7.5 million in funding for companies having exploration licenses less than five years old, in addition to the existing mining investment incentives like 100% foreign ownership and up to 75% capital expenditure financing.

Interested investors can visit the Ta'adeen platform to access information and technical data for the seven new sites.

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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.