Iraqi government begin to study the legal objections to the Shell contract
The economic adviser in the Iraqi government on Sunday that the Cabinet began to study the legal objections to the contract signed by Iraq with the Dutch Shell and its partner, Japan's Mitsubishi to develop the gas associated with oil fields in the country's south.
There were the Iraqi Oil Ministry in 13 of this month, initialed the final contract with the Dutch Shell and its partner, Mitsubishi of Japan $ 12 billion to invest in gas associated with oil fields in the country, South Korea. The Economic Adviser peace Qureshi, told the Kurdish news agency (Rn) that "the legal problems facing its contract Shell and Mitsubishi with Iraq, the Iraqi government began to study these problems, especially those that refer to it sharing contracts in the production, extraction, because the paragraphs of the contract does not suggest that they hold an investment."
He added that "the government is considering paragraph (b) of the contract, which confirms the transfer of the assets of the South Gas Company to the gas company Basra without any legal justification."
He explained that "did not specify the initial contract with Shell assets and the assets to be transferred to the Gas Company of Basra, which had not been established so far, its capital is disproportionate to the assets of Southern Gas Company, amounting to only $ 20 million While appreciating the assets of the South Gas Company in millions of dollars."
Under the contract signed between Iraq on the one hand, Shell and Mitsubishi on the other hand, will be the joint venture, named Gas Company of Basra at the forefront of Iraq's plans to modernize power plants and promote exports of oil, will hold the Iraqi government 51 percent of the project. And loses Iraq billion cubic feet of gas per day by burning, mostly in the south. And intends to use the gas production is a joint venture with Shell in the local market to meet the growing demand for electricity has issued surplus. and will help deal development, which has a term of 25 years to collect more than 700 million cubic feet per day of gas being burned now in three fields south are Rumaila, Zubair, West Qurna 1, which was put forward in the round of awarding contracts in 2009.
Quraishi said that "there are blurry in the contracting process between the ministry and Shell in particular with regard to rates of price and the relationship between the oil ministry and companies." He added that "the government is considering how to develop a contract to secure the needed citizens, gas stations and laboratories eligibility provided should not be higher than the world price of gas."
Iraq has the OPEC member's fourth-largest oil reserves in the world, and needs to gas for electricity generation and end the repeated power outages that the nation is still suffering from eight years after the US-led invasion United States of the country.
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