Iraq inks major gas JV deal

29 November 2011: Iraq finalised a $17-billion (approx Rs. 88,400 crore) JV deal with Shell and Mitsubishi to capture and process gas from its southern oil fields. The deal was signed by Shell CEO Peter Voser, Mitsubishi Vice President Tetsuro Kuwabara and Iraqi Oil Minister Abdelkarim al-Luaybi. Earlier this month the Iraqi cabinet approved the deal which creates the Basra Gas Company, a joint venture to process associated gas from the Rumaila, Zubair and West Qurna-1 fields.

The company will start its work in a year, and before the end of this year we will deal with the needed procedures related to the company's administrative structure. The company will also work on completing bilateral agreements signed between the investors. State-owned South Gas Company will hold a majority 51-percent stake in Basra Gas, while Shell will have 44 percent and Mitsubishi five percent.

Source: Economic Times