Baghdad: Iraq signed three contracts with the United Arab Emirates' Crescent Petroleum to develop three oil and gas fields in the eastern and southern regions of the country, the Iraqi Oil Ministry said.
In a statement issued on Sunday, the Oil Ministry announced that the agreements would enable Iraq to produce 400 million standard cubic feet of natural gas daily within 18 months. This production would occur in the blocks of Kilabat-Gumar and Khashim al-Hmer-Injana in the eastern province of Diyala and Khudhr al-Maa in the southern province of Basra.
Iraqi Oil Minister Hayan Abdul Ghani said the government was keen to increase gas investment projects to reduce gas flaring, which refers to the burning of the natural gas associated with oil extraction, and use the gas for power generation, Xinhua news agency reported.
Iraq, a member of the Organisation of the Petroleum Exporting Countries (OPEC), has more than 145 billion barrels of proven oil reserves and 132 trillion cubic feet of proven natural gas reserves.
But it still flares much of its gas wealth and relies on Iranian gas imports to feed its power plants.
With inputs from agencies