Iraq's gas development plans have long focused on BGC, a $17 billion joint venture between Royal Dutch Shell, state-run South Gas Company and Mitsubishi.

The Basra gas project is seeking to reach a targeted level of capturing and processing 2,000 mcf/d, the statement said.

The project was designed to aggregate gas from fields in the south including West Qurna 1, operated by Exxon Mobil Corp , Zubair, operated by Italy's Eni, and Rumaila, developed by BP.