HKN Energy to Develop Iraq's Hamrin Oil Field
The Ministry of Oil has signed an agreement in principle with HKN Energy to develop the Hamrin field in northern Iraq.
The agreement, signed on Tuesday between North Oil Company (NOC) and the US-based company aims to increase the field's output to 60,000 barrels per day, up from the current 20,000-25,000 bpd, and to capture and utilise 45-50 million standard cubic feet per day (mmscfd) of associated gas for power generation.
Oil Minister Hayan Abdul Ghani highlighted the government's commitment to working with reputable American and Western companies to develop Iraq's oil and gas assets and enhance energy output in support of the national economy. He noted the importance of investing in associated gas to help power electricity generation stations.
The agreement was signed in the presence of ministry officials, US Chargé d'Affaires Steven Fagin, and representatives from both companies. Fagin welcomed the partnership and expressed hope for more US business engagement in Iraq.
North Oil Company Director General Amer Khalil said the agreement lays the foundation for a future development contract covering all wells in the field and aims to train local staff and provide gas to electricity plants.
Matthew Zais, Vice President of HKN, said the company is proud to partner with the Ministry of Oil and aims to maximise the field's capacity while employing 80 percent Iraqi workers and contributing to local community development.
Earlier in the day, HKN reported an explosion at its Sarsang operations in Iraqi Kurdistan.
In May, HKN Energy and ONEX Group signed a binding term sheet with the Kurdistan Regional Government (KRG) to develop the Miran gas field through their new joint venture, Miran Energy. The KRG and Iraq's federal government have disagreed over the legitimacy of that contract.
(Source: Ministry of Oil)
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