Ministry of oil signs contract to boost gas production in Nahr Bin Umar field

BAGHDAD, January 7 — The Ministry of Oil announced on Sunday the signing of an investment contract between Southern Gas Company and Al-Halfaya Gas Limited, a Chinese-Iraqi company, to increase gas production by 150 million cubic feet during the first phase in the Nahr Bin Umar field in Basra.

Statement:

Deputy Prime Minister for Energy Affairs and Minister of Oil emphasized the importance of an investment contract signed between Southern Gas Company and Al-Halfaya Gas Limited. The agreement aims to increase gas production by 150 million cubic feet per day in the first phase of the Nahr Bin Umar field in Basra.

During the signing ceremony, Deputy Prime Minister Haidar Abdul Ghani highlighted the project’s contribution to the national economy by enhancing gas production, investment, and processing associated with oil operations. The project is expected to reduce external imports and establish a port for exporting liquefied gas and condensates at Umm Qasr Port. Additionally, it aims to curb harmful emissions, ensuring environmental preservation.

The minister emphasized the significance of the contract, providing 5,000 job opportunities and preventing the release of over 8 tons of pollutants into the air. The project aligns with the ministry’s efforts to utilize associated gas from oil fields to support the energy sector and enhance national production.

The head of the National Investment Authority, Haider Mohammad Mekki, expressed the project’s vital role in supporting the national economy, expressing hope for an increase in such projects benefiting Iraq.

The Deputy Minister for Gas Affairs, Ezat Saber, clarified that the contract follows the “Build, Own, Operate, Transfer” (BOOT) format, with a completion period of 36 months for the first phase. The project is part of a series of contracts aimed at investing in associated gas quantities from oil fields to support the energy sector and boost national production.

Hamza Abdul Baqi, the General Manager of Southern Gas Company, emphasized the investment nature of the contract, aiming to invest in, collect, and process 150 million cubic feet of gas currently flared in the Nahr Bin Umar field. The project aims to increase production to support the electricity sector, export surplus condensates and liquefied gas, and reduce carbon emissions.

Representing Al-Halfaya Gas Limited, Ahmed Al-Muhsen stated that the contract focuses on building, developing, transporting, and processing 150 million cubic feet of burned gas, expandable to 150 million cubic feet in the second phase. The project is expected to cease the release of 8 tons of pollutants into the air and create 5,000 job opportunities.