Skip to comments.Iraq Inks $17B Deal with Shell, Mitsubishi
Posted on 11/29/2011 5:20:59 AM PST by thackney
The Iraqi Ministry of Oil (MoO) formally signed a joint venture agreement with Shell, the South Gas Company (SGC), an affiliate of MoO, and Mitsubishi Corporation (MC) on an initiative to capture associated gas in South Iraq.
MC made an agreement with Shell to take a 5% interest in the project in August 2009. Following the Iraq government approval made on 15th November this year, SGC, Shell and MC have signed agreements associated with the project. These agreements create the Basrah Gas Company (BGC) Joint Venture, made up of Iraq's SGC (51%), Shell (44%) and MC (5%).
Some 700 million standard cubic feet per day of natural gas (5 million tonnes per year), which is produced by upstream suppliers in association with oil, is currently flared every day in southern Iraq because of a lack of infrastructure to collect it.
It will collect raw gas from the Rumaila, Zubair and West Qurna 1 fields in southern Iraq, and process that gas into valuable products, such as natural gas, condensate and liquefied petroleum gas (LPG), initially for sale domestically in Iraq. By capturing and processing this natural gas, BGC aims to create an important and reliable supply of domestic energy, reduce unnecessary greenhouse gas emissions and create significant value for Iraq.
In the future, once the local demands are met, and previous approval by the Iraqi authorities, BGC could develop a liquefied natural gas (LNG) facility to also export natural gas to create a new benefit for Iraq's economy and contribute stable energy supply to mainly Japan.
BGC will promote feasibility study and aim to start operation from 2013 (2 billion standard cubit feet per day of natural gas at maximum). As a new partner in BGC, MC brings knowledge of the existing South Gas Company facilities and complementary technical and commercial capabilities in order to enhance the value of the project.
Tetsuro Kuwabara, Mitsubishi Corporation's Senior Vice President, said, "Mitsubishi has been doing business in Iraq for over 50 years and are honored to be able to participate in this large-scale energy Joint Venture with Iraqi Ministry of Oil and South Gas Company. We aim to contribute to the country through the project and hope to further enhance the relationship between Republic of Iraq and Mitsubishi. We have had a long and close alliance with Shell for over 40 years in the global energy sector and are delighted to be the strategic partner in this project. We have a strong support from the Japanese Government and government financial institutions such as Nippon Export Investment Insurance."
I feel the say way about obama voters. I still see an obama bumpersticker once in a great while and just stare at them and shake my head.
“Never has a US President screwed up something given to him on a silver platter the way Zero has.”
ROTFLMAO! Oh easily Bush bots forget - it was DUBYA who signed the SOFA for US forces to leave all of Iraq. Here’s the link for those with terrible memories:
As for sticking around in Iraq, in case you haven’t noticed the Iraqis want us out. They demanded our troops not have immunity from Iraq law, US forces said no dice and then we got shown the exit. You demanding that we re-invade Iraq contrary to the wishes of the democratically elected government we helped put in place?
Not a Bush-bot, but the original SOFA signed by W was a holding place for a future agreement.
We were holding a lot of good cards to get a decent SOFA when we renegotiated, but Obama just said "HUH" and left - wow, that's diplomacy in action.
The decision not to negotiate must have suprised the Iraqi's, as Arabs enjoy the game of negotiation - to have Obama just toss his hand on the table and walk away was kind of like FDR at Yalta.
Come on, you know all of this - why do that Paulite knee-jerk?
ROTFLMAO! Yeah. Right. Name'em why don't ya. Care to respond to the point below while you're at it?
As for sticking around in Iraq, in case you havent noticed the Iraqis want us out. They demanded our troops not have immunity from Iraq law, US forces said no dice and then we got shown the exit. You demanding that we re-invade Iraq contrary to the wishes of the democratically elected government we helped put in place?
That was their opening bid - that is how deals are worked out - HELLO! one always starts high, or are you knew on this planet?
"You demanding that we re-invade Iraq contrary to the wishes of the democratically elected government"
Obama made it clear early on that he would dump allies and reward enemies - the Iraqi's may not be the brightest of bulbs but it doesn't take a Rhodes scholar to figure out you're better off allying yourself with the Iranians, who, by the way, Obama encouraged to play a larger role in Iraqi politics.
Geeze, did you just wake up?
“That was their opening bid”
And you were privy to the negotiations? - rolls eyes -
“Iraqi’s may not be the brightest of bulbs but it doesn’t take a Rhodes scholar to figure out you’re better off allying yourself with the Iranians”
Dubya sure wasn’t. The dolt should have thought before he signed off on the SOFA huh?