Oil Ministry to utilize flared gas in Nahr bin Omar oil field
Technicians adjusting a valve of an oil pipeline at Nahr Bin Umar oil field, north of Basra, Iraq. Photo: Reuters
Baghdad (IraqiNews.com) – The Iraqi Ministry of Oil said on Sunday that the South Gas Company and the Halfaya Gas Company (HGC) signed an agreement to utilize and process flared gas in the Nahr Bin Omar field in Basra governorate.
The project is expected to produce 150 million cubic feet per day, with the possibility of adding another 150 million in the second phase.
The Iraqi Minister of Oil, Hayan Abdul-Ghani, said that the project will support the Iraqi economy by increasing gas production, processing flared gas, and reducing imports, according to a statement issued by the Oil Ministry.
In addition to halting dangerous emissions and protecting the environment, Abdul-Ghani suggested building a terminal at the port of Umm Qasr for the export of condensates and liquefied natural gas.
The Iraqi Oil Minister stated that the agreement provides 5,000 job opportunities and prevents the release of more than eight tons of pollutants into the atmosphere.
The statement explained that the first phase is expected to be completed within 36 months.
The agreement is in the form of a build-own-operate-transfer (BOOT) contract, where the contractor owns the project during the project period.