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FINANCIAL NEWS
Iraq close to ink USD17m gas deal with Royal Dutch Shell
12 Sep 2011
(MENAFN) Iraq’s oil minister, Abdul Kareem Luaiby, said that Iraq was in the final stages of sealing a USD17 billion deal with Royal Dutch Shell that would give the oil company access to gas in Zubair, Rumaila and West Qurna-1 fields near Basra, reported The National.
Luaiby added that the Basrah Gas Company (BGC), a joint venture between the Anglo-Dutch company, along with the Iraqi state and Japan’s Mitsubishi, would process the gas produced in these three fields and sell it back to the government in order to be used as feedstock in power plants.
He also said that gas produced in these fields as a by-product was flared by the international oil firms that were pumping oil under deals inked in 2009 and 2010, nevertheless, since the country suffered from continued power blackouts, flaring wasn’t enough to produce power for electricity.
It is worth noting that Iraq’s electricity supply meets around half of its local demand, whereas existing efforts to increase production capacity have so far failed to lessen the gap.
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