Design work on Iraq-based South Oil Company’s Nahr bin Umar oil and gas field development project and the connected Bin Umar gas processing plant is progressing on schedule, according to a source close to the scheme.

Front-end engineering and design (feed) work for both projects is being carried out by Canada-based SNC Lavalin.

The project will develop the Nahr bin Umar oil field, which is located in southern Iraq, 15 kilometres to the north of Basra.

The field contains reserves estimated at 6.6 billion barrels of oil, with a planned capacity to produce about 440,000 barrels a day (b/d) as well as 12 billion cubic feet a day (cf/d) of gas. 

The budget for the field development contract is estimated to be worth $500m.

The gas processing plant, which has a planned capacity of 300 million cf/d, also has an estimated budget of $500m.