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IRAQ : Iraq inks $17 billion JV contract with Shell and Mitsubishi
Publish Date : 29-Nov-2011
Iraq reached a $17 billion joint venture contract with Shell and Mitsubishi, to obtain and process gas from its southern oil fields.
Peter Voser, CEO of Shell; Tetsuro Kuwabara, VP of Mitsubishi; and Iraqi Oil Minister Abdelkarim al-Luaybi, inked this deal.
Luaybi said, \"Today\'s event represents a big change in the oil industry.\"
Voser said, \"We are pleased to be partners in this project. Iraq is now an important partner for us in the Middle East.”
In early November, the cabinet of Iraq gave approval to this contract, which forms Basra Gas Company, a joint venture to process associated gas from Rumaila, Zubair and West Qurna-1 fields.
Ahmed Shamaa, Deputy oil minister in charge of refineries, said, \"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. We will also work on completing bilateral agreements signed between the investors.”
According to Ali al-Dabbagh, spokesman of government, state-owned South Gas Company will own a majority 51% stake in new joint venture. Shell will own 44% stake while Mitsubishi will own remaining 5% stake in it. The project will cover total investment of $17 billion in 25-year. The proposed project will have output capacity of 2 billion cubic feet or 56.6 million cubic metres, per day.
