US company signs deal to extract gas from Iraqi oilfield
Iraq has signed an agreement with Orion Gas Processors to let the American energy company process some of its natural gas.
The agreement was signed on Monday to allow the company access to the natural gas from Nahr Bin Omar oilfield, located north of the city of Basra in southeastern Iraq, Reuters reported.
The Memorandum of Understanding between the Iraqi Oil Ministry's representatives and Orion enabled the enterprise to start setting up facilities there to turn the extracts into fuel.
The agency also quoted Oil Minister Abdul Karim Luaibi as saying that the country intended to stop wastage of the gas at its oilfields, which bursts into flame due to the lack of processing facilities.
Late last year, the ministry said it planned to put out exploration and development projects at, at least nine oil and gas blocks bordering Iran and Kuwait to tender.
It said at the time that the blocks on offer were located in the provinces of Misan, Muthanna, Wasit, Central Diyala, and Basra.
The one in Basra houses Nahr Bin Omar, which produces more than 40,000 barrels per day of oil and 25 million cubic feet a day of natural gas.