Iraq agrees deal with China’s CPECC to process gas from giant oilfield

China Petroleum Engineering & Construction Corporation (CPECC) will build and operate facilities to process natural gas extracted alongside crude oil at Iraq’s giant Halfaya oilfield, two oil officials said on Wednesday.

CPECC, which is affiliated to China National Petroleum Corporation (CNPC), will process around 300 million standard cubic feet per day (mcf/d) of natural gas extracted alongside crude oil at the field, said the officials.

Halfaya, operated by PetroChina, is Maysan Oil Company’s largest oilfield, producing 370,000 barrels per day (bpd) of the company’s total output of around 510,000 bpd.

Iraq continues to flare some of the gas extracted alongside crude oil at its fields because it lacks the facilities to process it into fuel for local consumption or exports.