15 November 2011
Baghdad - The Council of Ministers has signed off on the Basra Gas Company, a public-private partnership to exploit the vast natural gas reserves near the port city.
Fadhel Mohammed Jawad, legal advisor to Prime Minister Nouri al-Maliki, said Royal Dutch Shell and Mitsubishi Corporation have signed up to the joint project with the state-owned South Gas Company.
The Iraqi government will have 51% of the company, Shell 44% and Mitsubishi 4%. This 25 year deal will exploit 700 million cubic meters of gas per day.
Discussions between the parties began several years ago and in Sept. 2008 they signed definitive project agreements. With Council of Ministers approval the Basra Gas Company can look to begin work on the 25,000 billion to 30,000 billion of gas from the Romayla, West Qurna and Zubair fields of Basra.
Until now this huge expanse of fuel has been wastefully burnt off in flares. With chronic electricity shortages in the south of Iraq the Basra Gas Company and Royal Dutch Shell's new 50MW gas fired power station will hopefully combine to provide some extra charge to the beleaguered power grid.
Baghdad - The Council of Ministers has signed off on the Basra Gas Company, a public-private partnership to exploit the vast natural gas reserves near the port city.
Fadhel Mohammed Jawad, legal advisor to Prime Minister Nouri al-Maliki, said Royal Dutch Shell and Mitsubishi Corporation have signed up to the joint project with the state-owned South Gas Company.
The Iraqi government will have 51% of the company, Shell 44% and Mitsubishi 4%. This 25 year deal will exploit 700 million cubic meters of gas per day.
Discussions between the parties began several years ago and in Sept. 2008 they signed definitive project agreements. With Council of Ministers approval the Basra Gas Company can look to begin work on the 25,000 billion to 30,000 billion of gas from the Romayla, West Qurna and Zubair fields of Basra.
Until now this huge expanse of fuel has been wastefully burnt off in flares. With chronic electricity shortages in the south of Iraq the Basra Gas Company and Royal Dutch Shell's new 50MW gas fired power station will hopefully combine to provide some extra charge to the beleaguered power grid.
© AK News 2011
