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.
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