The US Baker Hughes Company will develop gas fields in the Southern Iraqi Dhi Qar Governorate under an agreement to be signed shortly, an Iraqi official has said. 

The contract involves “development and utilisation of all gas resources in the Governorate,” Iraqi Oil Ministry Spokesman Asim Jihad said. 

He told the official Iraq News agency that the Ministry intends to sign that contract with Baker Hughes, which was acquired by the US giant General Electric in 2017, “in the coming period” as part of plans to boost natural gas production in the second largest oil producer in OPEC. 

Jihad said there are also plans to sign a similar agreement with Chinese firms to develop gas deposits in the South-eastern Maysan Governorate. He did not identify those companies or say whether the contract would be within the country’s oil-for-projects agreement signed with China in 2019. 

Jihad revealed plans to pump nearly $3 billion into the gas sector in the Southern oil hub of Basra to lift production from 900 million cubic metres/day to 1.4 billion cubic metres/day. 

(Writing by Nadim Kawach; Editing by Anoop Menon)

(anoop.menon@refinitiv.com)

Disclaimer: This article is provided for informational purposes only. The content does not provide tax, legal or investment advice or opinion regarding the suitability, value or profitability of any particular security, portfolio or investment strategy. Read our full disclaimer policy here.

© ZAWYA 2021