Iraq to finalize Shell gas deal next June

[sabra]

Source: AP

BAGHDAD (AP) -- A deal between Iraq and Royal Dutch Shell PLC to tap natural gas in southern Iraq is expected to be finalized and submitted to the Cabinet for discussion in June, a senior Iraqi oil official said Wednesday.

A preliminary agreement was signed last September to pave the way to establish a joint venture to gather, process and market associated natural gas in the oil-rich province of Basra. The gas is currently flared due to lack of sufficient infrastructure.

Officials said at the time that they hoped to sign a long-term, multibillion-dollar deal within a year, a period in which Shell was to survey the volume of flared gas, determine the capacity of existing infrastructure and draw up plans to refurbish or buy new equipment.

Iraqi officials have said approximately $40 million worth of natural gas is lost each day because it is either re-injected into wells or burned due to a lack of sufficient infrastructure to exploit it for consumption or export.

Read more: http://finance.yahoo.com/news/Iraq-to-finalize-Shell-gas-apf-15148048.html?.v=2

[Arctic Dave]

1. Since when do you lose gas by re-injecting it?

"approximately $40 million worth of natural gas is lost each day because it is either re-injected into wells..."

[ManiacJoe]

2. Probably due to the "or burned" part.

[ohio2007]

3. I'm sure the royal Dutch family will be pleased