Iraq’s oil minister signed an agreement with his Algerian counterpart for a gas processing joint-venture between Iraqi national oil companies and Algeria’s Sonatrach.
The JV will focus its investment on processing flare gas produced from oil fields and use it to power the national electrical power system and petrochemical plants, an Iraqi oil ministry statement quoted Iraqi Oil Minister Jabar al-Luaibi as saying.
Algerian Energy Minister Mustapha Guitouni, who arrived in Baghdad on Sunday, said his aim during the visit is to enhance bilateral cooperation between Iraq and Algeria in the field of gas investment and oil exploration among others, a separate statement quoted him as saying.
Al Luaibi said the ministers discussed ways of enhancing expertise and modernising methods of work in the field of exploration, pipeline network, pumping stations and equipment among others.
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.
Algeria is a main supplier of gas to Europe, exporting it by pipelines to the continent and also shipping it on tankers after liquefying the gas in special plants.