Italy’s Sicim SPA enters into $619 million contract in Iraq
West Qurna oil fields, Iraq. Photo: AP
Baghdad (IraqiNews.com) – The Iraqi cabinet mentioned in a statement on Tuesday that it approved a $619 million contract with the Italian company Sicim SPA to build gas facilities in the West Qurna-2 oilfield in southern Iraq.
The statement said that the 33-month agreement stipulates that the Italian company will rehabilitate a gas processing plant and build new gas facilities in the giant field managed by the Russian company Lukoil.
The deal is part of a series of contracts aiming to develop gas facilities that energy officials say will help Iraq stop gas flaring with oil extraction and use the processed gas to generate electricity.
The OPEC member state relies heavily on Iranian gas imports to operate its electrical grid. But the United States pushed Iraq to reduce its dependence on Iranian gas.
Iraq continues to burn some of the associated gas along with crude oil extraction because it lacks the facilities necessary to process the gas and turn it into fuel for either domestic consumption or export.