• 6 minutes WTI @ 67.50, charts show $62.50 next
  • 11 minutes Saudi Fund Wants to Take Tesla Private?
  • 17 minutes Why hydrogen economics is does not work
  • 5 hours Starvation, horror in Venezuela
  • 27 mins The EU Loses The Principles On Which It Was Built
  • 7 hours Desperate Call or... Erdogan Says Turkey Will Boycott U.S. Electronics
  • 3 hours Crude Price going to $62.50
  • 12 hours Anyone Worried About the Lira Dragging EVERYTHING Else Down?
  • 5 hours Chinese EV Startup Nio Files for $1.8 billion IPO
  • 17 hours Correlation does not equal causation, but they do tend to tango on occasion
  • 1 day California Solar Mandate Based on False Facts
  • 16 hours Oil prices---Tug of War: Sanctions vs. Trade War
  • 5 hours WSJ *still* refuses to acknowledge U.S. Shale Oil industry's horrible economics and debts
  • 1 day WTI @ 69.33 headed for $70s - $80s end of August
  • 16 hours Russia retaliate: Our Response to U.S. Sanctions Will Be Precise And Painful
  • 18 hours Monsanto hit by $289 Million for cancerous weedkiller
What Would A Hard Brexit Mean For British Oil?

What Would A Hard Brexit Mean For British Oil?

Despite nearly 14 months of…

Who Has The Right To Resources In The Caspian Sea?

Who Has The Right To Resources In The Caspian Sea?

Countries of the Caspian Sea…

James Burgess

James Burgess

James Burgess studied Business Management at the University of Nottingham. He has worked in property development, chartered surveying, marketing, law, and accounts. He has also…

More Info

Shell and Mitsubishi to Start Capturing Natural Gas from Iraqi Oil Fields

Extracting crude oil from wells around the world also releases large amounts of natural gas which, whilst a valuable source of energy in of itself, is often burned at the site of the well in a process that is known as flaring.

Iraq holds the fifth largest oil reserves in the world, and Deputy Industry Minister Mohammed Zain has stated that the country has to burn off as much as one billion cubic feet a day of natural gas due to the lack of infrastructure set up to capture and use this by-product.

In November 2011 Iraq signed a 25 year deal with Royal Dutch Shell Plc. and Mitsubishi Corp. to capture the natural gas from some of the biggest oil fields in the south of Iraq.

The $17 billion project, known as Basra Gas Co., will begin to capture some of the gas from the Zubair, Majnoon, and West Qurna-1 fields, next week. The official date of the 15th of April has been given by Ali Hussain Khudayir, the director general of South Gas Co., the government representative in the venture.

Related article: How to Buy Your Own Shale Boom

Beginning next week the facility will produce around 400 million cubic feet a day. The plan is for production to then grow until it eventually tops out at 2 billion cubic feet a day in 2017.

Through South Gas Co. the Iraqi government controls 51% of the project, while Shell owns 44% and Mitsubishi the remaining 5%.

10 years after the invasion to topple Saddam Hussein Iraq is still unable to meet domestic energy demand, so the main priority for this new source of natural gas is to supply power stations and increase energy generation levels. Once domestic demand has been satisfied the excess gas can then be exported.

By. James Burgess of Oilprice.com



Join the discussion | Back to homepage

Leave a comment

Leave a comment

Oilprice - The No. 1 Source for Oil & Energy News