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Iraq inks deal with Baker Hughes for natural gas processing: oil ministry

Baghdad (Platts)--3 Apr 2018 533 am EDT/933 GMT


Iraq has signed a natural gas capture deal with oil services provider Baker Hughes to harness 200 MMcf/d from the Nassiriya and Gharraf oil fields north of Basra, the Oil Ministry said in a statement on Monday.

"This project is the first of its kind to be built on the basis of the Engineering, Procurement, Construction and Finance (EPCF) of the Ministry of Oil and will support the development of the Integrated Natural Gas Complex in Nassiriya," the statement quoted Rami Qasem, head of Middle East for Baker Hughes, as saying. "It will then be expanded to become a complete LNG facility that will invest 200 million standard cubic feet per day of dry gas, liquefied gas and condensate."

Qasem said dry gas would be dedicated to Iraqi power plants.

Iraqi Oil Minister Jabbar al-Luaibi called the deal "an important achievement that puts us on the threshold of a new phase of the optimal investment of gas associated with oil operations."

The Nassiriya oil field is operated by the state-run Dhi Qar Oil Company, at around 70,000 b/d currently, with a target of 150,000 b/d. The field had been offered to foreign investors, targeting as much as 300,000 b/d, but the project has been taken back by the state company and the target reduced.

Gharraf is operated by Petronas under a 2010 technical service contract and is producing around 88,000 b/d with a plateau production target of 250,000 b/d.

"The project will also provide more than 1,000 tons of liquid gas per day and more than 900 cubic meters of condensate, as well as providing more than 500 jobs," Luaibi said in the statement.

"This contract will not be the last," he added. "There are many projects on the way through which we aim to develop the oil industry, optimize investment of national wealth and increase the revenues from it in support of the national economy."

Iraq is negotiating a gas capture deal for the state-run Nahr Bin Umar field with Houston-based Orion Gas Processors. It has announced multiple gas capture hubs in southern Iraq, and the Baker Hughes deal is the first.

--Adal Mirza, adal.mirza@spglobal.com
--Staff, newsdesk@spglobal.com
--Edited by Lisa Miller, newsdesk@spglobal.com

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