Under the terms of the MoU, Orion Gas Processors will construct facilities required to capture the gas produced from the field and then transform it into usable fuels.
Iraq Oil Minister Jabar al-Luaibi said that the MOU is a part of the country’s efforts to end gas flaring at the oil fields by 2021, Reuters reported.
Operated by state-run Basra Oil, the Nahr Bin Omar has a production capacity of more than 40,000 barrels per day of oil (bpd) and 25 million cubic feet a day of natural gas.
Jabar al-Luaibi said that the firm will capture and process 100 million to 150 million cubic feet/day (mcf) of gas.
The gas captured will be feed to power stations and will also be used to produce up to 10 million liters of gasoline.
Meanwhile, Iraq is also planning to finalize a gas export deal with Kuwait.
As part of this effort, a pipeline project is planned to be built to bring 50 mcf of Iraqi gas per day to Kuwait for 10-year period.
Recently, the Iraq Ministry of Oil has signed a memorandum of understanding (MoU) with British oil major BP to boost oil fields’ production capacity in the northern Kirkuk.
The deal comes as the government seeks to restore output and ramp up production at the oil-rich region, after Iraq regained the control of the area in October 2017.
