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On: Sat 08/20/2011 6:21
Baghdad / follow-term economic
and government signed in the twelfth of July, initialed a contract with Shell British - Dutch and Mitsubishi of Japan for the development of gas fields in southern Iraq.
According to a report in The Wall Street Journal from Dow Jones Newswires news that the contract will increase Iraq's production of gas is more than twice.
The report said that the project be implemented under the contract includes spending about $ 13 billion on the rehabilitation of infrastructure, or create a new anchor structures. The project will need to spend $ 4.4 billion additional adoption by companies of European, Japanese facility for liquefied natural gas.
According to the report, the contribution of the Iraqi side, amounting to 5.236 billion dollars, while contributing to Shell and Mitsubishi of 7 billion dollars with the financing of the remaining revenue from the project.
For his part, said Vice President Shell in the Middle East and North Africa, Mounir Bouaziz, Radio Free Iraq: The Iraqi side will own 51 percent of the shares of the company which is due to its establishment as Basrah Gas Company and Shell 44 percent, and Mitsubishi 5 percent.
The Bouaziz that the goal is to invest gas associated with oil extraction Thus, the quantity is directly proportional to the amount of crude oil production, describing the project as a huge project, costing tens of billions of dollars.
The representative of Shell said that priority would be to invest $ 700 million standard cubic feet per day burn now down to two billion cubic feet, and expected to report net income Iraqi treasury thirty billion dollars of this project which covers three fields south is Zubair and West Qurna 1, Rumaila for 25 years.
's report noted that Wall Street Journal that the contract value estimated at the time of signature initialed by 12 billion dollars, but the document referred to by Dow Jones Newswires news talk about the investment of $ 17.2 billion, and this was confirmed by Vice-President of Shell in the Middle East, Mounir Bouaziz, in his interview with Radio Free Iraq.
In case of implementation of the project according to terms agreed upon, the gas, which burns now be sold to the Iraqi side to meet the local demand first.
representative drew Shell Mounir Bouaziz to the economic losses incurred by Iraq is the burning of gas by about $ 60 in the second, especially since he can use this gas in power stations.
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