Shell gas deal gets initial OK, including exports
Iraq inked a draft deal to form a company with Shell and Mitsubishi to capture, process and export gas that is currently flared in Basra fields.
Iraq’s crude oil extraction also produces huge volumes of associated natural gas, half of which is currently burned off as a waste byproduct in flares like these, at the Rumaila oil field in Basra province. (ESSAM AL-SUDANI/AFP/Getty Images)
BAGHDAD - Iraq and partners Royal Dutch Shell and Mitsubishi agreed behind closed doors to a draft deal to form a joint venture company that will capture and process gas currently flared from three Basra oil fields and eventually export at least a portion of it.
There are many hurdles to be overcome, including whether Parliament will demand a say in the controversial deal.
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