Iraq postpones gas deal with Shell and Mitsubishi, for technical reasons
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  1. #1
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    Iraq postpones gas deal with Shell and Mitsubishi, for technical reasons

    Iraq postpones the conclusion of a gas deal with Shell and Mitsubishi, for technical reasons
    24/11/2011 10:12

    Baghdad, November 24 (Rn) - The Iraqi Oil Ministry, the postponement of a final contract with Shell and Mitsubishi, to collect the associated gas from southern oil fields worth about $ 17 billion.
    And was scheduled to conclude a contract on Thursday but was postponed to next Sunday, the ministry said that the delay was due to technical obstacles.
    He said the ministry spokesman Assem Jihad told the Kurdish news agency (Rn) that "the South Gas Company signed Sunday a contract with a consortium of Shell and Mitsubishi Gas Company to establish a Basra."

    Jihad said that "technical obstacles concerning the entry of representatives of companies to Iraq and delayed visa (visa) led to the postponement of the conclusion of the contract to the next Sunday."
    The Iraqi government announced on 16 this month, it agreed to the contract signed by the initials in the June 12 last with Shell and Mitsubishi, to collect the associated gas from southern oil fields.

    The agreement will help the development of which has a term of 25 years to collect more than 700 million cubic feet per day of gas currently being burned in three southern fields as Rumaila, Zubair, West Qurna.
    Under the contract will be a joint venture, named Basra Gas Company at the forefront of Iraq's plans to modernize power plants and promote exports of oil, the Iraqi government will own 51 percent of the project compared to 44 per cent of Shell and the rest of the Mitsubishi.

    Indicates a summary of the formal agreement published by the "Reuters" to the unit to export liquefied natural gas worth $ 4.4 billion in addition to $ 12.8 billion is the estimated cost of rehabilitation of gas facilities, existing and building new facilities, but does not mention the potential date for the construction of LNG facility.

    Shell and Mitsubishi consortium is expected to be the internal rate of return on the project 15 percent on an initial investment of $ 6.98 billion, while the South Gas Company plans to pump $ 3.7 billion of public money in the beginning and the financing of investment from the sales of the remaining gas.

    The project has faced legal obstacles and political opposition since the initial agreement reached in 2008.

    Iraq and lose billion cubic feet of gas per day and burning mostly in the south. And intends to use the gas production is a joint venture with Shell in the local market to meet the growing demand for electricity has issued surplus.

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  2. #2
    Will sign gas deal Sunday, Shell Exec's could not be there till Sunday Nov.27th. Read on another article this morning.

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