Oil Ministry to utilize flared gas in Nahr bin Omar oil field
The Iraqi Ministry of Oil announced a significant initiative on Sunday, revealing that the South Gas Company and the Halfaya Gas Company (HGC) have formalized an agreement aimed at harnessing and processing flared gas in the Nahr Bin Omar oil field situated in the Basra governorate.
Anticipated to yield 150 million cubic feet per day in its initial phase, the project holds the potential for an additional 150 million cubic feet in its subsequent stage.
Highlighting the economic benefits, Iraqi Minister of Oil, Hayan Abdul-Ghani, emphasized that this endeavor will play a pivotal role in bolstering the national economy. The project’s key objectives include augmenting gas production, processing flared gas, and curbing the need for gas imports, as outlined in a statement released by the Oil Ministry. Furthermore, the minister proposed the establishment of a terminal at the port of Umm Qasr, dedicated to the export of condensates and liquefied natural gas, contributing to economic diversification.
In addressing environmental concerns, Abdul-Ghani underscored the significance of halting hazardous emissions and safeguarding the environment. The oil minister indicated that the agreement would create 5,000 job opportunities and prevent the release of over eight tons of pollutants into the atmosphere. The comprehensive plan outlined in the statement envisages the completion of the project’s initial phase within 36 months. Notably, the agreement follows a build-own-operate-transfer (BOOT) contract model, where the contractor assumes ownership throughout the project’s duration.
