Iraq’s oil ministry spokesman tells the Financial Times that security is no longer a concern in Iraq. Evidently not: Royal Dutch Shell felt comfortable making a natural gas deal that could be worth $4 billion.
Shell and Iraq will run a joint operation to capture gas for commercial use in the Basra region. Shell will control 49% of the venture and Iraq the other 51%.
FT: Royal Dutch Shell is to become the first western oil company to sign a deal with the Iraqi government since the US-led invasion of 2003, agreeing a plan to capture and use gas in the Basra region that could be worth up to $4bn…
Shell’s project is intended to make use of the gas flared off by the oil industry in the south of Iraq. In that region alone, an estimated 700m cubic feet of gas is burned off every day for safety reasons: roughly enough to meet the demand for power generation in the entire country.
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