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FINANCIAL NEWS
Iraq awards USD17 billion contract to Shell, Mitsubishi
15 Nov 2011
(MENAFN) Iraq government awarded a USD17 billion joint contract to Royal Dutch Shell and Mitsubishi Corp. to capture the natural gas at three oil fields in the south of the country, Bloomberg reported.
Ali Al-Dabbagh, the government spokesperson said that Iraq owns 51 percent of the concession while Shell owns 44 percent, and Mitsubishi owns the rest, adding that the contract period is 25 years.
Shell was in talk with the government since 2008 to set up the venture to gather gas that is currently flared off and wasted.
Iraq is aiming at overcoming power generation shortage since 2003, and the associated gas, once captured, would help feed power stations and cover the nation’s power needs.
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