Iraqi Cabinet Approves Terms for Nahr Bin Umar Project

By John Lee.

The Iraqi Cabinet has endorsed the Energy Ministerial Council's recommendation (No. 23093 for 2023) regarding the gas investment project in the Nahr Bin Umar field. The key points include:

1. Recommending the exclusion of the gas investment project from Cabinet Decision No. 245 of 2019, amended by Cabinet Decision No. 23374 of 2023, concerning the exclusive declaration of investment projects through the National Investment Commission (NIC).
2. Ensuring payment guarantees through the Ministry of Finance, to be determined by the Ministry of Oil from November 21, 2023, based on budget allocations.
3. Financial settlements for all dues will be made solely through the sale of crude oil, facilitated exclusively by the State Oil Marketing Organization (SOMO), exempting it from budget execution facilitation directives.

According to the website of RASEP, part of the Baghdad-based Raban AI Safina Group of Companies: "The [Nahr Bin Umar] project is being developed by Halfaya Gas Company Ltd. (HGC), a special purpose project company owned by RASEP, pursuant to a 15 years' BOOT contract with South Gas Company [SGC] (a subsidiary of the Iraqi Ministry of Oil)."

(Source: Media Office of the Prime Minister)