Basra leaders threaten lawsuit

Days before Shell and Iraq are to formalize a new gas company, Basra's local government has voted to file a lawsuit challenging the deal.
Basra leaders threaten lawsuit
Iraqi South Oil Company engineers look toward the natural gas flares in the Zubair oil field in southern Iraq on January 21, 2010. (ESSAM AL-SUDANI/AFP/Getty Images)

BASRA - The Basra Provincial Council on Tuesday voted to file a lawsuit challenging the imminent, multi-billion-dollar joint venture between the Iraqi Oil Ministry, Royal Dutch Shell and Mitsubishi.

Officials said they wanted more local involvement in the contracting process, particularly in determining compensation policies – one of several key demands that delayed the deal's approval for more than three years, following a Sept. 22, 2008, signing of a Heads of Agreement in Baghdad.

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