More delays to Shell's Iraq gas deal

23 August 2011

Energy Commission will meet on 29 August to discuss deal

Iraq’s Energy Commission has postponed a meeting to discuss the long-delayed deal to capture and utilise flared gas by UK-Dutch oil major Shell until 29 August.

The commission headed by Deputy Prime Minister for Energy, Hussein al-Shahristani announced on 17 August that it would discuss the controversial deal from Iraq’s southern oil fields on 22 August, AK news agency reports.  

The delay is so that the deal can be “completely studied” before recommendations are submitted to the cabinet.

The Oil Ministry signed an agreement with Shell in late 2008. After three years of delays, the Oil Ministry signed a final agreement with Shell its partner, Japan’s Mitsubishi on 12 July and the deal is now under consideration by both the parliament and the council of ministers (MEED 12:8:11).

Iraq flared 874 million cubic feet a day (cf/d) in June, according to figures released by the Oil Ministry. Baghdad has been seeking a way of ending this enormously wasteful practice.

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