Iraq to sign deal with Shell by year end

BASRA / IraqiNews.com: A multibillion-dollar final deal between Iraq and Royal Dutch Shell to capture flared gas at southern oilfields is expected to be signed before the end of the year, a senior Iraqi oil official said on Monday. The $12 billion deal, a venture between Iraq‘s South Gas Company, Shell and Japan’s Mitsubishi involves the capture of associated natural gas produced at fields near the oil hub of Basra, including Rumaila, Iraq‘s workhorse. “We hope to sign the agreement after it is ratified by the cabinet before the end of the year,” Ali Hussein, director general of South Gas Company, said. Deputy Oil Minister Ahmed al-Shamma told reporters the final draft of the deal will be completed within 10 days. Last month Oil Minister Hussain al-Shahristani said the contract would not include the supergiant 12.6-billion-barrel Majnoon oilfield which is being developed by Shell and Malaysian partner Petronas. SH (S) 3