Iraq, Orion sign deal to process natural gas from giant oilfield

BAGHDAD: Iraq agreed a deal with U.S. energy company Orion on Monday to process natural gas extracted at its giant Nahr Bin Omar oilfield.

The memorandum of understanding, signed in Baghdad by representatives of the oil ministry and the U.S. company, will allow Orion Gas Processors to build facilities to capture the gas from the field located in southern Iraq and to transform it into usable fuels.

Nahr Bin Omar, operated by state-run Basra Oil Co., is producing more than 40,000 barrels per day of oil (bpd) and 25 million cubic feet a day of natural gas.

Iraq continues to flare some of the gas extracted alongside crude oil at its fields because it lacks the facilities to process it into fuel for local consumption or exports.

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