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Treasury income from gas contract with shell $ 30 billion
18.08.2011
Faris Omar
The Iraqi Government signed on 12 July initialed a contract with shell-Dutch wemtsobishi Japanese gas field development in southern Iraq.
According to a report published by the Wall Street Journal, Dow Jones news service that the contract will double the niozwairz produce gas from Iraq, more than twice. The report added that the project be implemented under the contract contains $ 13 billion spent on rehabilitation of the infrastructure or create new anchor structures. The project will require spending an additional $ 4.4 billion built by European and Japanese companies for liquid gas plant.
According to the report, the Iraqi side contribution amounting to one billion dollars, with 5.236 contribute approximately wemtsobishi shell 7 billion dollars with the financing of the remaining project revenues.
Radio free Iraq met Vice-President of shell in the Middle East and North Africa Mounir Bouaziz, who revealed that the Iraqi side will own 51 percent of the shares of the company to be founded on behalf of the Basra gas company and shell 44 percent wemtsobishi 5 percent.
The objective is to Bouaziz investment associated gas oil quantity is therefore proportional to the quantity is proportional to the crude oil production, describing the project as a project costing tens of billion dollars.
Shell representative said that priority would be to invest 700 million standard cubic feet per day to burn now to two billion cubic feet projected net incomes of the Iraqi Treasury 30 billion dollars from this project, which covers three southern fields are Zubair and West Qurna, Rumailah and 1 for 25 years.
He noted the report of the Wall Street Journal that the contract value was initialled at 12 billion dollars, but the document referred to by the niozwairz news service Dow Jones talk about the investment value of $ 17.2 billion, and this was confirmed by the Vice President of shell in the Middle East to Mounir Bouaziz radio free Iraq.
If the implementation of the project as agreed items, gas burning now will be sold to the Iraqi side to meet domestic demand first.
Representative Mounir Bouaziz Shell to economic losses incurred by Iraq are burning gas rose around 60 dollars per second, especially since it can use this gas to run power plants.
Member of the Committee on oil and gas in the House of Bayezid Hassan pointed out that one of the parties to the project company Mitsubishi buys gas from Iraq and sold him to the world price but welcomed in principle rather than burning gas.
Experts estimate that Iraq was ranked tenth among the world's gas reserves volume, but produces about 1.5 billion cubic feet daily burn half only because of the lack of facilities and factories for the production and marketing. It is expected that multiplies the signed contract with shell wemtsobishi quantity more than twice.
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