upstreamonline.com
Cost hike on Shell Iraq deal
Iraq’s gas deal with supermajor Shell, to capture and exploit associated gas from its giant southern oilfields, is expected to produce 2 billion cubic feet per day and cost $17.2 billion, according to an official agreement summary.
Aleya Begum 16 August 2011 09:38 GMT
The figures were reported by Dow Jones, who obtained a copy of the summary agreement.
The Iraqi Oil Ministry signed a final draft deal with Shell and Japan’s Mitsubishi last month, to develop gas production in a number of giant oilfields in the Basra region of southern Iraq.
Investment in the 25 year joint venture was initially announced as $12 billion.
The deal will harness associated gas from the Rumaila, West Qurna 1 and Zubair fields being developed by BP, ExxonMobil and Eni, respectively.
The controversial agreement, which has faced fierce opposition due to the Oil Ministry selecting Shell on a non-competitive basis, still needs to go to Cabinet for final approval.
Published: 16 August 2011 09:38 GMT | Last updated: 16 August 2011 09:53 GMT
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