Iraq has signed an agreement with the US energy company Orion for the extraction of gas in the Basra oil fields in the south of the country. This was announced in a statement by the Iraqi Oil Ministry. The agreement concerns the development of the Nahr Bin Omar field, which currently produces about 40 thousand barrels of oil per day, which has a large amount of associated gas.
Iraq is trying to exploit its gas fields to help overcome the serious shortages of electricity in the country of about 35 million people. The Iraqi Oil Ministry is in talks with the US Exxon and other Chinese companies for the development of its oil and gas production. Last January 2, the Iraqi Oil Minister, Jabbar al Luaibi, had revealed in a letter to Prime Minister Haider al Abadi that investments in natural gas in the governorate of Basra, southern Iraq, have experienced an unprecedented increase in '80 percent ".
In the message, the minister had specified that, "at the beginning of January 2018, the investment capacity (of the Basra gas complex) will reach 275 million cubic meters per day". The Basra Gas Company, founded in 2013, is one of the main Iraqi companies operating in the sector. The company employs 5.500 employees and produces gas from which the electricity used by 17 millions of Iraqi families is generated.
Iraq is pursuing work to optimize gas extraction associated with crude oil production to achieve the goal of ending "gas flaring" by the end of 2021. This was stated by the Iraqi Oil Minister, Jabbar al Luaibi, during the signing ceremony of the memorandum of understanding with the US company. The US ambassador to Iraq, Douglas Silliman, also took part in the event. According to Al Luaibi, the signing of the memorandum with Orion is an important step for Iraq, allowing it to increase gas production by reducing the burning of resources in oil fields. The Minister of Petroleum also declared that "the development process will allow the use of gas for the production of electricity, in the petrochemical and fertilizer industry, as well as allowing the production of oil derivatives". For his part, Ryan Manicom, Orion's representative in Iraq, noted the importance of Orion's investment in Iraq, announcing that the company is ready to work in collaboration with the Iraqi Oil Ministry to invest in the gas associated with the production processes of the oil and reduce waste of resources.