Baghdad (IraqiNews.com) – Iraqi state-owned North Oil Company (NOC) signed a deal on Thursday with US-based HKN Energy to develop the Hamrin field in northern Iraq.
The step is part of the Iraqi Ministry of Oil’s goal to effectively utilize resources and boost oil and gas output.
During a ceremony held to sign the deal, Oil Minister Basim Khudair confirmed that the step is consistent with the government’s strategy to provide sufficient oil and gas supplies for local consumption while boosting export rates.
Under the deal, the field’s oil production will reach 140,000 barrels per day in addition to 40 million cubic feet per day of gas, according to Khudair.
To minimize gas flaring, the generated gas will be utilized to generate electricity within the field and in operations to boost output, according to the oil minister.
Despite economic and security issues, the Hamrin oil field currently has a production capability that ranges between 20,000 and 25,000 barrels per day.
The agreement is also part of Baghdad’s aspirations to boost oil output to around seven million barrels per day over the coming few years.