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Iraq gets $ 98 billion from a joint venture with Shell and Mitsubishi
Editor: NQ Monday, 05 September 2011 12:38 GMT
Alsumaria News / Baghdad
*****Showed a joint venture agreement signed between the two Dutch, Japanese and Iraqi Oil Ministry, *****which aims to create an Iraqi company joint***** with specific responsibility under the name of Basrah Gas Company for 25 years,***** the project will provide financial benefits to Iraq of $ 58 billion, *****in addition to the amount expected to get by Iraq caused by the dry gas replacement *****replace crude oil and black oil in power plants and $ 40 billion. *****
The agreement, which was submitted to the Iraqi parliament, during the month of August last, that "the project's gas Basra joint will provide financial benefits to Iraq of approximately $ 58 billion before any amendment to support the government for the price of gas and petroleum products in the Iraqi market, which is expected to be $ 27.5 billion at a price $ 75 for a barrel of crude oil, which is the price of oil to the state budget adopted by the Ministry of Oil for this joint venture. "
It adds the Convention that "Iraq will need in order to achieve those benefits to the budget allocation of investment by $ 3.7 billion, and the transfer of existing assets which have a book value less than $ 5 million," indicating that "Iraq's revenues would be through several means which have to pay gas company Basra taxes are applied in Iraq, which is expected to arrive during the life of the project to 21 billion dollars. "
The Convention affirms that "the joint venture will pay to the SOMO the amount of $ 846 million fee to export, and pay the joint venture also to the South Gas Company as a contribution to the Basrah Gas Company's share of the profits, amounting to $ 18.7 billion, as will the joint venture to the South Gas Company as a supplier of gas, the raw amount of $ 17.7 billion.
The Convention makes clear that "the joint venture will provide the Iraqi government's budget limits (40 billion dollars at a price of $ 75 for a barrel of crude oil) and (82 billion dollars and 82 dollars at a price of $ 150 for a barrel of crude oil), indicating that the amount due to bring gas dry replace crude oil Black and oil in power plants. "
The Convention refers to "the amount of gas that are burning now in southern Iraq represents an economic loss estimated at $ 1.8 billion per year, pointing out that Shell and Mitsubishi will invest $ 6.9 billion including investments matching of the assets of Southern Gas Company, who lives with $ 1.5 billion and financing partial value of one billion submitted directly to the South Gas Company. "
The agreement states that "the objective of the gas project in southern Iraq is to create an Iraqi company joint limited liability company under the name of the Gas Company of Basra between the South Gas Company by 51% and Shell 44% and Mitsubishi 5% for 25 years," indicating that "the collection of associated gas with the production of oil from three oil fields are Rumaila, Zubair, West Qurna - Phase I ".
The Convention is that "the current output of natural gas is a billion cubic feet a day, which burns 70% of it useless," noting that "the project will provide treatment to produce a gas processor and used as fuel for electricity generation and industrial plants, petrochemical and gas derivatives LPG used for cooking and Industry condensates and natural user Kalkasulan Kdezl in vehicles. "
In mind the Convention that "the project may sell the gas produced for the South Gas Company of the Iraqi government price-based world, while indicating pricing associated with crude oil and gas that, when the price of Brent oil $ 75 a barrel, you will get gas company Basra, 3.22 dollars per million British thermal units of dry gas which is sold to the South Gas ", the latter may have to sell gas at $ 1.04 only per million British thermal units for the production plants of Iraq's electricity industry, which means that the South Gas would have to pay huge subsidies to support the price of domestic gas may increase with prices the world's gas. "
The Convention refers to "the existence of a proposed alternative solution to the joint-stock company to process associated gas through the combined operations and the development of gas within the oil contracts for the first licensing round, in order to compatibility of such contracts with what has been done in decades, the second licensing round," indicating that "the situation is different in each rounds, where the facilities of the second licensing round fields do not include gas facilities must therefore be created to address the shared facilities of gas between the three fields. "
The Convention affirms that "this partnership is not the only one where there are similar partnerships in the developed countries in the industries of petroleum regarding the collection and processing of associated gas, as Abu Dhabi Gas Industries Ltd. with the Company (GASCO), which was founded in 1978," noting that "based on the establishment of Gas Company Basra been based on legal grounds, an Iraqi Law No. 101 of 1976 and Act No. 21 of 1997 and No. 22 in 1997.
The Iraqi Council of Ministers agreed in June 2010 the past, to open the door of investment associated gas produced in the southern oil fields near Basra, at a cost of up to $ 12 billion.
The prime minister and approved during June 2010 as well, to establish a gas company Basra with the South Gas Company 51 percent, Shell and Mitsubishi 49%, according to the economic model developed by the Oil Ministry on the basis of an agreement of Principles signed between them and Shell for the treatment of associated gas produced from Rumaila, Zubair, West Qurna, Majnoon, while the initial agreement was signed for the establishment of the company between the Ministry of Petroleum and Shell in September 2008.
Iraq signed in 2010, contracts with several international companies to develop some oil fields in the two rounds of licensing the first and the second to reach a production of at least 11 million barrels per day within the next six years, and 12 million barrels a day, after the addition of the quantities of the other fields of national effort .
Iraq is gripped by means of its oil facilities provided, and produces nearly two million and 600 thousand barrels per day of crude oil, without a quota within the Petroleum Exporting Countries "OPEC" for which Iraq is a founding member.
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Editor: NQ Monday, 05 September 2011 12:38 GMT
Alsumaria News / Baghdad
*****Showed a joint venture agreement signed between the two Dutch, Japanese and Iraqi Oil Ministry, *****which aims to create an Iraqi company joint***** with specific responsibility under the name of Basrah Gas Company for 25 years,***** the project will provide financial benefits to Iraq of $ 58 billion, *****in addition to the amount expected to get by Iraq caused by the dry gas replacement *****replace crude oil and black oil in power plants and $ 40 billion. *****
The agreement, which was submitted to the Iraqi parliament, during the month of August last, that "the project's gas Basra joint will provide financial benefits to Iraq of approximately $ 58 billion before any amendment to support the government for the price of gas and petroleum products in the Iraqi market, which is expected to be $ 27.5 billion at a price $ 75 for a barrel of crude oil, which is the price of oil to the state budget adopted by the Ministry of Oil for this joint venture. "
It adds the Convention that "Iraq will need in order to achieve those benefits to the budget allocation of investment by $ 3.7 billion, and the transfer of existing assets which have a book value less than $ 5 million," indicating that "Iraq's revenues would be through several means which have to pay gas company Basra taxes are applied in Iraq, which is expected to arrive during the life of the project to 21 billion dollars. "
The Convention affirms that "the joint venture will pay to the SOMO the amount of $ 846 million fee to export, and pay the joint venture also to the South Gas Company as a contribution to the Basrah Gas Company's share of the profits, amounting to $ 18.7 billion, as will the joint venture to the South Gas Company as a supplier of gas, the raw amount of $ 17.7 billion.
The Convention makes clear that "the joint venture will provide the Iraqi government's budget limits (40 billion dollars at a price of $ 75 for a barrel of crude oil) and (82 billion dollars and 82 dollars at a price of $ 150 for a barrel of crude oil), indicating that the amount due to bring gas dry replace crude oil Black and oil in power plants. "
The Convention refers to "the amount of gas that are burning now in southern Iraq represents an economic loss estimated at $ 1.8 billion per year, pointing out that Shell and Mitsubishi will invest $ 6.9 billion including investments matching of the assets of Southern Gas Company, who lives with $ 1.5 billion and financing partial value of one billion submitted directly to the South Gas Company. "
The agreement states that "the objective of the gas project in southern Iraq is to create an Iraqi company joint limited liability company under the name of the Gas Company of Basra between the South Gas Company by 51% and Shell 44% and Mitsubishi 5% for 25 years," indicating that "the collection of associated gas with the production of oil from three oil fields are Rumaila, Zubair, West Qurna - Phase I ".
The Convention is that "the current output of natural gas is a billion cubic feet a day, which burns 70% of it useless," noting that "the project will provide treatment to produce a gas processor and used as fuel for electricity generation and industrial plants, petrochemical and gas derivatives LPG used for cooking and Industry condensates and natural user Kalkasulan Kdezl in vehicles. "
In mind the Convention that "the project may sell the gas produced for the South Gas Company of the Iraqi government price-based world, while indicating pricing associated with crude oil and gas that, when the price of Brent oil $ 75 a barrel, you will get gas company Basra, 3.22 dollars per million British thermal units of dry gas which is sold to the South Gas ", the latter may have to sell gas at $ 1.04 only per million British thermal units for the production plants of Iraq's electricity industry, which means that the South Gas would have to pay huge subsidies to support the price of domestic gas may increase with prices the world's gas. "
The Convention refers to "the existence of a proposed alternative solution to the joint-stock company to process associated gas through the combined operations and the development of gas within the oil contracts for the first licensing round, in order to compatibility of such contracts with what has been done in decades, the second licensing round," indicating that "the situation is different in each rounds, where the facilities of the second licensing round fields do not include gas facilities must therefore be created to address the shared facilities of gas between the three fields. "
The Convention affirms that "this partnership is not the only one where there are similar partnerships in the developed countries in the industries of petroleum regarding the collection and processing of associated gas, as Abu Dhabi Gas Industries Ltd. with the Company (GASCO), which was founded in 1978," noting that "based on the establishment of Gas Company Basra been based on legal grounds, an Iraqi Law No. 101 of 1976 and Act No. 21 of 1997 and No. 22 in 1997.
The Iraqi Council of Ministers agreed in June 2010 the past, to open the door of investment associated gas produced in the southern oil fields near Basra, at a cost of up to $ 12 billion.
The prime minister and approved during June 2010 as well, to establish a gas company Basra with the South Gas Company 51 percent, Shell and Mitsubishi 49%, according to the economic model developed by the Oil Ministry on the basis of an agreement of Principles signed between them and Shell for the treatment of associated gas produced from Rumaila, Zubair, West Qurna, Majnoon, while the initial agreement was signed for the establishment of the company between the Ministry of Petroleum and Shell in September 2008.
Iraq signed in 2010, contracts with several international companies to develop some oil fields in the two rounds of licensing the first and the second to reach a production of at least 11 million barrels per day within the next six years, and 12 million barrels a day, after the addition of the quantities of the other fields of national effort .
Iraq is gripped by means of its oil facilities provided, and produces nearly two million and 600 thousand barrels per day of crude oil, without a quota within the Petroleum Exporting Countries "OPEC" for which Iraq is a founding member.
[You must be registered and logged in to see this link.]
