THE WALL STREET JOURNAL
JUNE 29, 2010
By Hassan Hafidh Of DOW JONES NEWSWIRES
The Iraqi cabinet Tuesday approved a deal with Royal Dutch Shell PLC (RDSA) and Mitsubishi Corp. (8058.TO) to develop a gas-structure project in southern Iraq, paving the way for a final signature of the multibillion deal, a government spokesman.
Ali al-Dabbagh said that Shell and Mitsubishi Corp. would hold 49% stake in the venture while Iraq’s state-owned South Gas Co. would hold 51%.
The decision was taken at the cabinet’s weekly meeting, Dabbagh said in a statement, a copy of which emailed to Dow Jones Newswires,
The proposed $10 billion-$20 billion joint venture aims to capture a huge amount of gas from four super-giant oil fields in the southern governorate that is currently being wasted.
“The venture will process associated gas produced from Rumaila, Zubair, West Qurna Phase 1 and Majnoon oil fields,” Dabbagh said.
Dabbagh didn’t say, however, when exactly the deal will be signed.
According to the preliminary agreement signed in September 2008, South Gas Co. will control 51% of the project, while Shell will hold 44%, and the remaining 5% will be owned by Mitsubishi.
-By Hassan Hafidh; Dow Jones Newswires; +962 799 831 831; email@example.com