Official: Iraqi Oil Ministry has delayed the gas deal with Shell
Official: Iraqi Oil Ministry has delayed the gas deal with Shell
Said a senior adviser to the Iraqi government on Monday that the oil ministry has delayed a deal billions of dollars in with Shell and Mitsubishi of Japan to capture and gas investment , which being flared is currently in the southern oil fields because of issues legal relating to the joint venture ...
Iraq's cabinet agreed in June to invest to be , worth $ 12 billion, the government owns a 51 percent stake to the imprisonment of associated natural gas produced in oil fields in southern Iraq near Basra, but he was now waiting to return the oil ministry to submit a draft agreement for approval.
Said Thamer Ghadhban, a senior adviser to Prime Minister Nuri al- Maliki told reporters at a conference in Istanbul that the deal may see further delay if was unable to the ministry re- draft the agreement before the formation of the new government.
He added, "It's up to the Minister of Oil to enter into this Agreement and they are now amending the draft."
And burn Iraq billion cubic feet of gas per day in oil fields which energy need to generate electricity in a country suffering from disruption a chronic in electricity supply.
It has been agreed for the first time on the deal Shell in 2008. said Ghadhban that the Ministry of Oil and Shell discussing are now amendments to the final draft to address a legal loophole to prevent the Ministry's role in the formation of the joint venture.
"We adjust the draft in order to be signed between Shell and the South Gas Company (government ), while to ensure the ministry other obligations such as supply of raw gas operations upstream."
He said some members of the government they would prefer the contract was awarded through a competitive process.
Was formed after a new government in Iraq after six months of the elections that took place in March, was inconclusive, creating a political vacuum.
He angered the "If the minister ( the contract of the Council of Ministers) before forming a new government, there is no doubt in my mind that the Council of Ministers will approve it."
"As if it were delayed and parliament has to nominate a prime minister, there will be a delay."
Said Mounir Bouaziz, Vice President of Shell's gas and electricity during the conference that the company was waiting for to end the ministry of the details of the contract, adding that the postponement is a setback for the project at a time rising when oil production.
"He was expected to be signed this contract for over a year so it will be the task of catching up with the oil sector very difficult."
and signed Iraq several deals with international oil companies that will enhance production capacity to 12 million barrels per day during the seven years from 2.5 million barrels per day currently.
Bouaziz said that the contracts awarded by the government to oil companies to develop fields southern in the city of Basra, could produce enough of the associated gas to generate 30 gigawatts of electricity, adding that the ethane extracted during the liquefaction of natural gas may also help in establishing industry a petrochemical in Iraq.
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