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Iraq Says Some Hurdles to $12.5 Billion Shell Gas Deal Removed
June 14 2011
Iraq and Royal Dutch Shell Plc (RDSA)removed some hurdles blocking a $12.5 billion natural-gas contract, Deputy Oil Minister Ahmad al-Shamaa said.
“There were some points of differences, and we have managed to narrow them and the exchanges between us are continuing,” he said today in a telephone interview fromBaghdad. “There is nothing expected this week, we will see for later on.”
The project with Shell and Mitsubishi Corp. involves developing and capturing gas that is being flared, or burned off, in southern Iraq. The signing of the agreement has been repeatedly delayed since last year.
The Iraqi government is eager to develop gas resources to supply fuel to generate electricity. The nation’s power plants have failed to meet domestic demand and ending blackouts has become a top political priority. The government, which hopes eventually to produce enough gas to export, awarded three licenses last November in the nation’s first auction of concessions for the fuel since the U.S.-led invasion of 2003.
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June 14 2011
Iraq and Royal Dutch Shell Plc (RDSA)removed some hurdles blocking a $12.5 billion natural-gas contract, Deputy Oil Minister Ahmad al-Shamaa said.
“There were some points of differences, and we have managed to narrow them and the exchanges between us are continuing,” he said today in a telephone interview fromBaghdad. “There is nothing expected this week, we will see for later on.”
The project with Shell and Mitsubishi Corp. involves developing and capturing gas that is being flared, or burned off, in southern Iraq. The signing of the agreement has been repeatedly delayed since last year.
The Iraqi government is eager to develop gas resources to supply fuel to generate electricity. The nation’s power plants have failed to meet domestic demand and ending blackouts has become a top political priority. The government, which hopes eventually to produce enough gas to export, awarded three licenses last November in the nation’s first auction of concessions for the fuel since the U.S.-led invasion of 2003.
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