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FINANCIAL NEWS
Baghdad signs gas deal with Shell, Mitsubishi
30 Jun 2010
(MENAFN) Iraqi government spokesman Ali Al-Dabbagh said that Baghdad has approved a deal with Royal Dutch Shell and Japan?s Mitsubishi Corp that will provide much needed electricity from natural gas, AP reported
He pointed out that state-owned South Gas and Basra Gas companies in southern Iraq will take a 51 percent stake in the contract, with Shell and Mitsubishi taking a 49 percent share.
Iraq produces a negligible quantity of gas compared with the size of its reserves, and currently flares off most of what comes out with its crude output as it lacks the capture technology needed to use the gas for power generation.
The joint deal with Shell and Mitsubishi will exploit gas in the Rumaila, Zubair, West Qurna and Majnoon fields near Basra, the spokesman added.
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