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Iraq is preparing to produce two billion cubic feet of gas per day in a joint venture with Shell and Mitsubishi
Posted 17/08/2011 03:05 PM
BAGHDAD:
Showed an agreement signed a joint venture between two companies (Shell) Dutch and (Mitsubishi), the Japanese and the Iraqi Oil Ministry, and presented to the Iraqi parliament, a few days ago, Iraq's production of natural gas will rise to two billion cubic feet per day, while profits would be that they would gain about 31.1 billion dollars over the term of the contract, which provides gas to invest in three oil fields in southern Iraq.
Indicates summary venture agreement which will be called (Basrah Gas Company) and received the Commission on oil and energy parliamentary days before a copy of it in English that the duration of the investment in the joint venture for up to 25 years, with a value of approximately $ 17.2 billion after the value is set in the earlier 12 billion dollars, according to the contract, the Iraqi government will own 51% of the shares of the project, and (Shell) 44% and (Mitsubishi) 5% of the shares.
The Convention stipulates that (Basrah Gas Company) will work on the collection and processing of natural gas associated with oil extracted from three fields of southern massive a Rumaila, West Qurna - Phase I, and Zubair, and is expected to reap Iraq almost from 31.1 billion dollars in taxes, fees, and sales of raw gas during the contract period.
And draws the Convention to the project (Basra Gas Company) will provide natural gas to the Iraqi market to feed the power plants and to meet local needs, and then heading towards the export surplus of it, is expected to be about 600 million cubic feet per day.
Remember, the Convention that the funding of the project needs to contribute to Iraq with 5.236 billion dollars in the company 0.1524000000 dollars to rehabilitate the infrastructure, and (Shell) and (Mitsubishi) Vstsihaman about $ 7 billion, while funding the remaining amount through the revenues of the project, The contract included an optional loan worth one billion dollars from two companies to the Iraqi side to finance the project.
Convention, and explains that about $ 12.8 billion from the funds of the project funding will be spent on rehabilitation of existing oil infrastructure and build new ones, while the remaining amount will be spent on a project to build a liquid natural gas is implemented (Shell) and (Mitsubishi).
The summary that the project may sell the gas produced by (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 (Basrah Gas Company) on the 3.22 dollars per million British thermal units of dry gas which is sold for (gas south), 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 (gas south) will have to pay huge subsidies to support the domestic gas price may increase with global gas prices.
Noteworthy that, despite the fact that Iraq is the tenth largest gas reserves in the world, it produces about 1.5 billion cubic feet a day only, and burn half of this amount per day due to lack of necessary infrastructure for gas investment and marketing.
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