Iraqi airspace shutdown to impact oil projects
16 June 2025
The closure of Iraq’s airspace and heightened concerns about security are likely to impact project progress in the country’s oil and gas sector, according to industry sources.
Iraq closed its airspace and suspended all air traffic on 13 June following Israeli strikes on Iran on 12 June.
Oil companies remain concerned about the potential for violence to spill over into Iraq and are closely watching developments, sources said.
One source said: “All of the oil companies active in Iraq are likely to be watching developments very closely.
“They are also likely to be drawing up plans for potential evacuations over land borders into neighbouring companies that could be used if the security situation deteriorates.
“The latest developments are already impacting oil companies as they cannot transport workers and they are having to divert increased resources into security precautions.
“Just how much projects will be impacted will depend on how long this period of heightened tensions goes on for and whether or not the security situation worsens.”
If the conflict does escalate between Israel and Iran, Iraq’s southern oil and gas assets are likely to be most vulnerable as they would potentially be in the line of fire between the two countries, sources said.
On 15 June 2025, Iraqi security forces deployed air defence systems near the Bazarkan oil field in Iraq’s Maysan province.
On 12 June, the Italian oil company Eni, which is developing the Zubair oil and gas field in Basra, said it was closely monitoring the security situation in Iraq.
The comments from the oil company came after the US decided to partially evacuate its embassy in the country.
[Oil companies active in Iraq] are likely to be drawing up plans for potential evacuations over land borders into neighbouring companies that could be used if the security situation deteriorates
Industry source
This latest period of increased concerns about security in Iraq follows a surge in investment in the country’s oil and gas sector.
In May, MEED revealed that the total value of all oil, gas and chemicals projects in Iraq had hit its highest level in a decade as international oil companies showed renewed enthusiasm for the country’s assets.
On 6 May, the total value of projects within these sectors that had been announced as planned or already under execution hit $152.2bn, according to information gathered by regional projects tracker MEED Projects.
The total value of oil, gas and chemicals projects in the country had risen by 15.6% since the same time last year, when it stood at $131.7bn. The value of projects under execution had also hit an all-time high of $93.3bn.
MEED’s June 2025 report on Iraq includes:
> COMMENT: Iraq maintains its pace, for now
> GOVERNMENT & ECONOMY: Iraq’s economy faces brewing storm
> OIL & GAS: Iraqi energy project value hits decade-high level
> PIPELINES: Revival of Syrian oil export route could benefit Iraq
> POWER: Iraq power sector turns a page
> CONSTRUCTION: Iraq pours billions into housing and infrastructure projects
> DATABANK: Iraq forecast dips on lower oil prices
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Dubai seeks consultants for drainage projects6 February 2026
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Egypt contractor secures €58m loan for Hungary power plant6 February 2026
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AD Ports signs Jordan Aqaba port PPP deal6 February 2026
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Chinese firm wins Ceer automotive supplier park deal6 February 2026
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The request for qualifications (RFQs) was issued by the municipality’s Sewerage and Recycled Water Projects Department (SRPD).
The bid submission deadline is 26 February.
The first scheme under the package is TF-16-C1, which involves upgrading and rehabilitating the stormwater system east of the Dubai Canal.
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Modon tenders Ras El-Hekma construction contracts
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Abu Dhabi-based developer Modon Holding has tendered several contracts as part of the first phase of development at Ras El-Hekma, a planned new city on Egypt’s Mediterranean coast.
MEED understands that the tenders were issued in January.
These include:
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Modon has accelerated development works at Ras El-Hekma this year. In January, MEED reported that Modon Holding had awarded a E£15bn ($316m) contract for the construction of a project at Ras El-Hekma.
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In September, MEED reported that Modon Holding had tendered contracts for the infrastructure works for the first phase of the Ras El-Hekma project.
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The announcement followed AD Ports Group’s signing of a shareholders’ agreement in January 2024 between its digital arm, Maqta Gateway, and Jordan’s Aqaba Development Corporation regarding their existing joint-venture company, Maqta Ayla.
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Chinese firm wins Ceer automotive supplier park deal
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Beijing-headquartered Metallurgical Construction Corporation (MCC) has won a contract to undertake the steel structure works on the Ceer automotive supplier park in King Abdullah Economic City (KAEC).
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