Receive our newsletter – data, insights and analysis delivered to you
  1. Comment
February 25, 2022updated 23 Feb 2022 12:44pm

Iraqi gas project worth $1bn hits milestone

The planned gas processing plant at Halfaya field in Iraq has been completed by 51% and is scheduled for completion in mid-2023.

By MEED   

Contractors have completed 51% of the planned gas processing plant at Iraq’s Halfaya field, according to a statement released by the country’s oil ministry.

The plant is now scheduled to be completed and start trial operations start in mid-2023.

Previously it was expected to be completed before the end of this year.

In April 2019, China Petroleum Engineering & Construction Corporation (CPECC) announced it had won a contract to build and operate facilities to process natural gas extracted alongside crude at the Halfaya oil field.

CPECC signed a $1.07bn engineering, procurement, construction, commission, operations and maintenance (EPCCOM) contract for the plant with Iraq’s Oil Ministry on 29 July 2019.

CPECC, which is affiliated with China National Petroleum Corporation (CNPC), is expected to process around 300 million standard cubic feet a day of natural gas extracted alongside crude oil at the field.

Under the existing contract, it will operate and maintain the facility for two years after the EPC work is completed.

In July 2020, MEED revealed that the plant was 30% complete.

A total of 30 months was originally scheduled for the Halfaya gas processing plant project to be completed.

While the project to build the gas facility is making significant progress, there have been extensive delays to the planned drilling campaign at the Halfaya field.

In November 2020, MEED reported that staff numbers on site had been reduced to around just 70 workers, down from about 240 in February 2020.

Chinese oil and gas company Petrochina is the operator of the field and, under the terms of the technical service contract it signed with state-owned Maysan Oil Company (MOC), it should be producing 450,000bpd.

In July 2020, production at the field had declined to less than 170,000bpd.

Halfaya is MOC’s largest oil field, producing the majority of MOC’s total output.

Halfaya is one of many oil and gas fields in the Middle East and North Africa region that have reduced output due to a combination of reduced energy demand and logistical issues connected to the Covid-19 pandemic.

This article is published by MEED, the world’s leading source of business intelligence about the Middle East. MEED provides exclusive news, data and analysis on the Middle East every day. For access to MEED’s Middle East business intelligence, subscribe here.

Related Companies

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. The top stories of the day delivered to you every weekday. A weekly roundup of the latest news and analysis, sent every Friday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU