Bassem Abdul-Karim Al-Shamkhani, director of the state-run Basra Oil Company (BOC), announced on Thursday that China Petroleum Engineering and Construction Corporation (CPECC) has been selected by Baghdad to develop a $1.7 billion gas project at the Nahr Bin Omar field in southern Iraq.
Speaking to Reuters, Al-Shamkhani stated that the project is expected to produce 300 million standard cubic feet of gas, reducing Iraq’s reliance on gas imports. Negotiations are ongoing between the Iraqi Ministry of Oil and CPECC to finalize the deal and potentially lower the project cost.
CPECC has also been instrumental in developing the Basra Natural Gas Liquids (BNGL) project, which extracts and processes associated gas from three major oilfields. According to China’s Xinhua News Agency, the facility produces 2,600 tons of liquefied petroleum gas and 4.4 million cubic meters of dry gas daily, helping to address energy shortages in neighboring areas.
Additionally, CPECC has been tasked by its parent company, China National Petroleum Corporation (CNPC), with increasing production at Iraq’s massive West Qurna 1 oilfield. The development aims to boost output by 45%, from the current 550,000 barrels per day to 800,000.
The West Qurna 1 oilfield, located approximately 50 kilometers northwest of Basra, is one of the largest in the world, with proven reserves exceeding 20 billion barrels. These projects underscore Iraq’s efforts to enhance its energy infrastructure and maximize resource utilization.
