Iraq Talks With Shell Prolonged, Continue-Official

Source: Reuters 2/26/2010, Location: Middle East

Talks between Iraq and Royal Dutch Shell on a natural gas deal near the southern oil hub of Basra are taking longer than expected but still ongoing, a senior Iraqi oil official said.

"The heads of agreement will be extended and the project will be presented to the next government," the official said on condition of anonymity.

The Iraqi government has been working to finalize the joint venture between its South Gas Company, Shell and Mitsubishi. The deal would capture huge amounts of gas for domestic use or export, which is currently wasted by being flared at the oil fields.


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