Sunday, July 24, 2011

Iraq sign initial deal to tap natural gas

Sunday, July 24, 2011

Baghdad (AP) - an oil executive Royal Dutch Shell PLC and the Japanese Mitsubishi Corp. an initial deal with the Iraq to tap natural gas in the South of the country have signed, said Tuesday pulled to develop the latest push-to Iraq energy due to years of neglect and war affected.The deal, which Iraqi officials said a value between $12 billion to 17 billion dollars, is a joint venture company, to collect, process and market natural gas in the oil rich province of Basra. It is considered an important part of the strategy of the Government to generate electricity in a nation boost where chronic power outages resulted in times of violent protests.

Shell Vice President for the Middle East and North Africa Mounir Bouaziz told the associated press, the business in Baghdad have been signed and would be sent to the Cabinet for final approval.He did it, not immediately provide information and Iraqi officials for comment available were.In contrast to other energy deals, 2003 signed Iraq with international energy companies since the US-led invasion, deal behind closed doors was signed on Tuesday. The oil Ministry first the media invited on Monday, but later said that the signing ceremony was postponed. No explanation was specified for the change in the plan.The joint venture is called Basra gas company.

Iraq is one of 51 percent of the shares hold, Royal Dutch Shell 44 percent and Mitsubishi-5 per cent-Anteil.Die signing marks an important development in a project that has been bogged down in legal questions since Iraq and shell has signed memorandum of understanding in September 2008.Iraq burns from almost half of the 1.5 billion cubic meters per day of gas produced and the 25-year development deal at the country's help would capture more than 700 million cubic metres per day of gas from three southern oil fields. The land is undeveloped gas reserves, the world's fourth-largest reserves of conventional crude oil and 126.7 trillion cubic meters proved.In a brief statement after the signing, Elaibi, "major changes" at the draft deal based made on recommendations of Iraqi experts and three international legal company said Iraqi oil Minister Abdul-Karim. It not work."But the project can still said in Schwierigkeiten.Energie Committee of Parliament, approved the project of legislators, not the Cabinet must be."

"It must be covered by a law and approved by the Parliament are not the Cabinet according to the law," said the Committee Chairman, Adnan al-Janabi, AP.Al-Janabi added that his Committee work ban the Government from signing no new oil or gas contracts, to a long delayed hydrocarbons is adopted.Since the 1990s Iraq, sitting up on the world's fourth-largest proven reserves of conventional crude oil billions trying to rebuild of the dilapidated power grid. Area together with the vital oil sector, was drawn by years of wars and sanctions affected and Iraqis to overthrow, even years after the US-led invasion in 2003 to Saddam Hussein getting only between five to seven hours per day

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