Sinopec wins contract to develop Iraqi gas field
Chinese oil company Sinopec has secured a contract to develop the Mansouriya gas field in Iraq's eastern Diyala province, Iraq's oil ministry reported on April 20.
The 25-year contract gives Sinopec a 49% interest in the project while the state-owned Midland Oil Co has 51%. The target is to produce 300mn ft3/day of gas from the field, the oil ministry said, which will be used to supply power stations in Baghdad and the Dilyala region. The ministry plans to award contracts to other companies to develop gas fields and construct facilities in southern Iraq and the Anbar province.
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Iraq holds some 3.5 trillion m3 in proven gas reserves, according to BP statistics, but produced only 10.8bn m3 of commercial supplies last year, whereas its demand came to nearly 20bn m3. It wants to boost output by developing new fields and reducing flaring, to help wean itself off imports from Iran and expand gas-fired power generation.
France's Total signed an agreement in principle with Iraq on developing two gas projects and a solar power scheme in late March.