Tuesday, Jul 12, 2011
LONDON (Dow Jones)--Iraq and Royal Dutch Shell PLC (RDSA) and its partners Tuesday signed the long-stalled $12 billion gas deal to capture and exploit huge volumes of gas flared from southern oil fields, an Iraqi oil official said.
"An initial pact for the gas project in southern Iraq has been signed with Shell and its partner," the official, who asked not to be named, told Dow Jones Newswires.
The project is crucial to Iraq's plans to expand its oil production, because as oil output rises, the associated gas produced with the oil will need to be handled.
The deal still needs the approval of the Iraqi government.
-By Hassan Hafidh, Dow Jones Newswires; +962 799 831 831; hassan.hafidh@dowjones.com
(END) Dow Jones Newswires
12-07-11 0958GMT
