Shell And Iraq Government Agree On Landmark $4 Billion Deal

Financial Times:

Royal Dutch Shell is to become the first western oil company to sign a deal with the Iraqi government since the US-led invasion of 2003, agreeing a plan to capture and use gas in the Basra region that could be worth up to $4bn.

It also emerged on Monday that Iraq's oil ministry had written to oil companies saying it had abandoned its controversial plan to award short-term technical support contracts to a small number of them to work on its oil fields.

Shell's project is intended to make use of the gas flared off by the oil industry in the south of Iraq. In that region alone, an estimated 700m cubic feet of gas is burned off every day for safety reasons: roughly enough to meet the demand for power generation in the entire country.

Read the whole story: Financial Times