Iraq’s Oil Ministry has established three new subsidiaries to provide services for the sector, including two companies to operate the country’s oil and gas pipeline infrastructure.

The Oil Services Company has been formed with a capital of ID100bn ($85.8m) to manage the drilling and maintenance operations at Iraq’s wells.

The Oil Pipeline Company for Crude Oil Transportation has a capital of ID300bn and is intended to operate crude pipelines, pumping stations and storage depots. Its responsibilities also cover export terminals, according to Oil Ministry spokesman Asim Jihad, along with the pipeline network feeding Iraq’s power plants.

Working in parallel with the oil transport company is Pipeline Company for Gas Transportation, with another ID200bn in capital, which will operate and maintain dry gas and liquid petroleum gas (LPG) links and storage terminals.

No reason has been given for creating the new firms and it is unclear how they will work alongside the Oil Ministry’s existing organisations such as Iraqi Drilling Company and the Iraq Oil Pipelines Company, which have similar remits.

The ministry, which has acted as both the regulator and operator of the country’s oil sector, has a number of subsidiaries established to carry out its operating functions. The authority has been calling for the re-establishment of the Iraq National Oil Company (INOC) to resume the role of operator, leaving the ministry with a purely policy and regulatory role.

Iraq oil sector structure
Body Sector Function
Oil Ministry All Regulator and operator of oil and gas sector since 1987
Iraq National Oil Company All Merged with Oil Ministry in 1987; proposal to re-establish the company has been with parliament since 2007
South Oil Company Upstream Oil and gas production in Basra, Dhi-Qar and Muthanna provinces
North Oil Company Upstream Oil and gas production in Baghdad, Kirkuk and Ninevah provinces
Missan Oil Company Upstream Oil and gas production in Missan province
Midland Oil Company Upstream Oil and gas production in Anbar, Babil, Diyala, Diwaniya, Karbala and Wasit provinces
North Gas Company Gas processing Development and utilisation of associated gas reserves in northern Iraq
South Gas Company Gas processing Development and utilisation of associated gas reserves in southern Iraq
Basra Gas Company Gas processing Joint venture between South Gas Company, UK/Dutch Shell Group and Japan’s Mitsubishi to capture and use associated gas from southern oil fields
Iraq Oil Pipelines Company Midstream Operation and maintenance of nation-wide oil and gas pipeline network
Oil Pipeline Company for Crude Oil Transportation Midstream Operation and maintenance of crude pipelines, pumping stations, storage depots, export terminals and pipeline network feeding Iraq’s power plants
Pipeline Company for Gas Transportation Midstream Operation and maintenance of dry gas and liquid petroleum gas pipelines and storage terminals
North Refineries Company Downstream Operation and maintenance of Baiji, Seniyah, Kasik, Kirkuk and Qayara refineries
South Refineries Company Downstream Operation and maintenance of Basra, Thi-Qar and Missan refineries
Midland Refineries Company Downstream Operation and maintenance of Daura, Najaf, Haditha, Diwaniya and Khanaqin refineries
Oil Exploration Company Exploration Oil and gas exploration activities in Iraq outside of blocks awarded to international oil companies
Iraqi Drilling Company Drilling Provision and operation of drilling rigs
Oil Services Company Oil services Management of drilling and maintenance operations at Iraq’s wells
Oil Products Distribution Company Midstream Distribution of oil products
State Oil Marketing Organisation Midstream Marketing of oil products
State Company for Oil Projects (Scop) Projects Acts as client for major oil and gas schemes
Source: MEED