Iraq's NIC seals landmark deal for Bin Omar gas field development

Shafaq News/ Iraq's National Investment Commission (NIC) has officially signed an investment license with the Halfaya Gas Company Ltd. (HGC) to initiate the development of the Bin Omar gas field in Basra Governorate.

NIC Chairman, Dr. Haider Makkiya, told Shafaq News Agency that the investment license will provide 300 cubic meters and is equivalent to a third of what Iraq imports from Iran."

The Bin Omar field project, following the "build, own, operate, and transfer ownership" (BOOT) mechanism, received approval from the Council of Ministers on November 24, 2023. It entails a 15-year development period after the date of commercial operation.

The field, positioned as one of the strategic assets in Basra Governorate, is expected to process more than 300 million standard cubic feet of dry gas per day, significantly boosting Iraq's gas production and reducing dependence on imports.

Investor Saad Wahib highlighted to Shafaq News the importance of this step, "the investment license is considered the first Iraqi partnership in the field of associated gas investment." He added that the project is a national endeavor that addresses environmental concerns and contributes to energy security.

"The project's first step is to eliminate environmental pollution, and the second step is that this investment will contribute to providing clean energy and gas instead of importing it from abroad."

The project's completion period is estimated at 36 months, focusing on utilizing local Iraqi gas instead of imported sources, contributing to the nation's economic growth and energy independence.

In its program, the Iraqi government has identified the gas sector as a top priority, actively seeking investments to enhance the country's natural gas capabilities.