A subsidiary of PetroChina has signed an agreement with Iraq to develop an onshore gas field with an initial output capacity of 150 million cubic feet per day (mcf/d).

Petrochina Halfaya was awarded the contract on BOOT (build-own-operate-transfer) basis for the development of Nahr bin Umar field in the Southern port of Basra.

In comments published on Sunday, Iraqi Oil Minister Hayan Abdel Ghani said the project could be expanded later to produce an additional quantity of 150 mcf/d to be used in fuelling power stations in Southern Iraq.

In other remarks, Oil Ministry Undersecretary Izzat Sabir said the project would be completed within 36 months and would include construction of gas gathering facilities, storage tanks and pipeline networks to supply gas to power stations. Project values weren’t disclosed.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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