Italy’s Sicim SPA enters into $619 million contract in Iraq

Italy’s Sicim SPA enters into $619 million contract in Iraq

According to a statement released on Tuesday, the Iraqi cabinet approved a contract worth $619 million with Sicim SPA, an Italian company, to construct gas facilities in the West Qurna-2 oilfield in southern Iraq.

The statement announced that under a 33-month agreement, an Italian company will refurbish a gas processing plant and construct new gas facilities in the massive Lukoil-managed field.

Iraq has signed a deal as part of a series of contracts to develop gas facilities. These contracts aim to help the country stop gas flaring during oil extraction. According to energy officials, the processed gas will then be used to generate electricity.

The OPEC member state heavily relies on gas imports from Iran to power its electrical grid. However, the United States exerted pressure on Iraq to reduce its dependence on Iranian gas.

Iraq still burns some of the associated gas during crude oil extraction because it needs the necessary facilities to process the gas into fuel for domestic consumption or export.