Title: Iraq Awards Italian Company "Cisem" Contract for Gas Facilities Construction

The Iraqi Cabinet stated in a statement today, Tuesday, that "the Cabinet approved a contract worth $619 million with the Italian company Cisem for the construction of gas facilities in the West Qurna 2 oil field in the south of the country." It clarified that "the 33-month agreement stipulates that the group will rehabilitate a gas processing plant and build new gas facilities in the giant field operated by the Russian company Lukoil." The deal is part of a series of contracts aimed at developing gas facilities that energy officials say will help Iraq stop flaring associated gas from oil extraction and use the processed gas for electricity generation. The OPEC member state heavily relies on Iranian gas imports to operate its electricity network. However, the United States has urged Iraq to reduce its dependence on gas from the Islamic Republic. Iraq continues to flare some gas extracted alongside crude oil due to a lack of facilities needed to process it and convert it into fuel for local consumption or export.