Monday, September 22, 2008

Iraq, Royal Dutch Shell to ink gas deal

Iraq and Royal Dutch Shell PLC on Monday will formally launch plans to invest in a joint venture to tap natural gas in southern Iraq, a government spokesman said.

Iraqi Oil Minister Hussein al-Shahristani will sign the deal with executives from the Anglo-Dutch company at the Cabinet's offices in the heavily fortified Green Zone in Baghdad, his spokesman said.

A joint venture with the state-run Iraqi South Oil Co. will then be established to invest in natural gas in the southern oil-rich province of Basra, the spokesman Assem Jihad said.

Iraq will control 51 percent of the venture, while Shell will hold the remaining 49 percent in the company, which will exploit flared associated gas for domestic use and exports.

"Financial, legal and technical experts from both sides will start immediately to draw up the plans and basis for the new company that will run this operation," Jihad told The Associated Press in a phone interview.

"The agreement will help Iraq to make use of about 700 million cubic feet which is being flared everyday to process it and to meet the domestic needs and to export the surplus to the world gas market," he added.

Full story from AP
Iraq, Royal Dutch Shell to finalize gas deal - International Herald Tribune
Iraq expects to ink gas deal with Shell - Forbes
$4bn agreement between Shell and Iraq - The National

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