BAGHDAD – Iraq has signed a final multibillion deal with Royal Dutch Shell PLC and Japan’s Mitsubishi Corp. to tap natural gas in the country’s south.
The $ 17 billion agreement allows the two to form a joint venture to gather associated gas from three major oil fields in Basra province that is currently wasted due to a lack of infrastructure.
The joint venture is called Basra Gas Company. Iraq will hold a 51 per cent stake, to Royal Dutch Shell’s 44 per cent and Mitsubishi’s 5 per cent share.
The 25-year venture will mainly use the gas to address the war-plagued country’s domestic energy needs but there is also an option for export.
Iraq sits on top of 143.1 billion barrels of crude and 126.7 trillion cubic feet in gas reserves.
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