Royal Dutch Shell has initialised a deal that takes it one step closer to capturing gas in the southern gas fields of Iraq.
The deal has been knocking around since a Heads of Agreement was signed in 2008 and is now waiting on the Iraqi Cabinet’s approval.
The Basrah Gas Company joint venture would exploit gas reserves that are currently being flared but not used. If given the go ahead, it could begin supplying Iraq’s domestic supply, helping to counteract power cuts which often strike the country.
The deal could be to the tune of $12billion, as reported by Reuters.
Shell said that they do not release such figures and would not confirm the figure when contacted by ELN, but a spokesman said: “We believe that this Joint Venture is very important and would open many options to Iraq to make the best use of its natural gas. This venture will make more dry gas available for power generation and reduce the amount of power taken from the domestic grid for oil production.
“Ultimately, it will create a new income stream for Iraq’s economy and reduce negative environmental impacts.”