Iraq is pursuing negotiations with the US oilfield services Halliburton for the development of one of its largest fields, an official was quoted on Thursday as saying.

The negotiations cover a project to develop oil deposits in Nahr bin Omar field in the Southern oil hub of Basra following the awarding of a contract to develop its gas resources, Oil Ministry Undersecretary Bassim Khudair told the official news agency.

“We have signed a contract with another company to develop the field’s gas resources…the company has already started working on the project,” he said.

“There are also negotiations with Halliburton for the development of the oil side of the field to complement the project in the gas side,” he added.

Khudair said the gas project would produce nearly 300 million cubic feet per day in two phases within three years.

Iraqi officials said last month that in case it is awarded the project, Halliburton will help Iraq in increasing production at the field to 300,000 barrels per day, (bpd) adding that the field currently produces around 50,000 bpd.

In late 2023, Iraq said it awarded the field’s gas project to Halfaya Gas Company, an affiliate of the Iraqi Raban Al-Safina Group,

Discovered in 1948, Nahr bin Omar Field has proven oil deposits of around 6.6 billion barrels, according to Iraqi estimates.

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@lseg.com)

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