• 6 minutes Trump vs. MbS
  • 11 minutes Can the World Survive without Saudi Oil?
  • 15 minutes WTI @ $75.75, headed for $64 - 67
  • 34 mins Satellite Moons to Replace Streetlamps?!
  • 16 hours US top CEO's are spending their own money on the midterm elections
  • 2 hours EU to Splash Billions on Battery Factories
  • 2 hours U.S. Shale Oil Debt: Deep the Denial
  • 2 hours The Balkans Are Coming Apart at the Seams Again
  • 18 hours OPEC Is Struggling To Deliver On Increased Output Pledge
  • 24 hours Petrol versus EV
  • 2 hours The Dirt on Clean Electric Cars
  • 14 hours Uber IPO Proposals Value Company at $120 Billion
  • 19 hours U.N. About Climate Change: World Must Take 'Unprecedented' Steps To Avert Worst Effects
  • 4 hours 47 Oil & Gas Projects Expected to Start in SE Asia between 2018 & 2025
  • 16 hours A $2 Trillion Saudi Aramco IPO Keeps Getting Less Realistic
  • 21 hours 10 Incredible Facts about U.S. LNG
Why Is This Little-Known Element Up Over 300%

Why Is This Little-Known Element Up Over 300%

Element ‘’V’’, better known as…

U.S. Shale’s Glory Days Are Numbered

U.S. Shale’s Glory Days Are Numbered

That decline rates in U.S.…

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


x

Join the discussion | Back to homepage

Leave a comment

Leave a comment

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