Gulf Oil and Gas accountACCOUNT

Shell Gas Deal Seen Delayed Past Iraq Elections

Source: Reuters 9/5/2009, Location: Middle East

Political opposition to a gas venture between the Iraqi government, Royal Dutch Shell and Mitsubishi may delay its finalization until after national elections in January, a senior oil official said on Saturday.

Deputy Oil Minister Ahmed al-Shamma, stressing he spoke for himself rather than the Iraqi Oil Ministry, said he expected the project in southern Iraq would be not be signed until after the Jan. 16 elections in which Iraq will select a new parliament.

"In the current climate, signing the deal and making a decision is very difficult essentially because there is strong opposition, used by politicians for other reasons not related to gas and investment in gas for political objectives." "This is my personal expectation, It is not related to the desires of the ministry or the government," Shamma said. The Iraqi government has been working to finalize the joint venture between its South Gas Company and the two foreign firms, which will capture flare gas released as a by-product of crude oil extraction around Iraq's southern oil hub of Basra.

The gas venture, once in place, will be at the forefront of Iraq's plans to modernize dilapidated oil and gas facilities, update technology and boost oil output that over six years after the 2003 ouster of Saddam Hussein hovers around pre-war levels.

Yet the deal, which would harness for export or domestic use huge amounts of gas Iraq currently burns off into the ether, faces opposition from lawmakers who criticize its terms and say it will be unconstitutional unless sent to them for approval.

They have threatened to revoke the deal and push Shell out of Iraq - just one front in the bitter turf war between Iraq's executive and legislative branches over who has the authority to broker major energy deals in the absence of new energy laws long delayed by a feud between majority Arabs and minority Kurds.

The debate extends to deals Iraq hopes to sign in two rounds of bidding for major oil and gas contracts, the anchor of its oil strategy. Iraq has already awarded one deal in the first round, which concluded in June, to a BP-led (BP.L) group.

The second round is expected to culminate in December.

But the first national elections since 2005, which some Iraqis fear may set off resurgence in violence just as U.S. troops prepare to withdraw, weigh heavily on negotiations over the future of Iraq's energy sector.

Compromise on difficult issues, such as oil, in Iraq's parliament may become even more difficult ahead of the polls. Uncertainty about the next government's position on energy deals, and questions about whether Oil Minister Hussain al-Shahristani will be reappointed, may intensify doubts among investors already wary about Iraq's security and legal risks.

Iraq and Shell have already signed an initial agreement for the gas project, but the venture must still be finalized.

Oil & Gas Companies News in Iraq >>

Oman >>  7/17/2019 - JGC Corporation (hereinafter referred to as "JGC") announced today that it has been awarded a Front End Engineering and Design (FEED) contract under a...
Saudi Arabia >>  7/10/2019 - McDermott International, Inc. (MDR) has been awarded a contract in excess of $1.5 billion for Package 4 of Saudi Aramco's Marjan Increment Development...

Saudi Arabia >>  7/9/2019 - Saudi Aramco has awarded 34 contracts with a total value of $18 billion for the engineering, procurement and construction of the Marjan and Berri incr...
Kuwait >>  7/1/2019 - Kuwait Oil Company (KOC) and Halliburton have signed an Integrated Offshore Drilling Services contract for six high-pressure high-temperature (HPHT) e...

Saudi Arabia >>  7/1/2019 - Saudi Aramco and Baker Hughes, a GE company (BHGE) signed a memorandum of understanding to create a new joint venture facility in Saudi Arabia to man...
United Arab Emirates >>  7/1/2019 - DP World PLC announces the acquisition of 100 per cent of Topaz Energy and Marine Limited (“Topaz”) from Renaissance Services SAOG and Standard Charte...

Related Categories: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  Food Supplies  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Skilled Labors  Transportation, 4X4 Trucks  Unskilled Labors  Utility Systems  Waste Disposal  Water Supply Services  Welding Products/Services 

Related Articles: Camp Building  Cleaning Equipment, Services  Communication  Corrosion Products/Services  Development  Exploration  General  Labor Services  Land & Leasing  Mine Clearance  Oil & Gas Companies  Production  Service Companies  Transportation, 4X4 Trucks  Utility Systems  Water Supply Services  Welding Products/Services 


Iraq Oil & Gas 1 >>  2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | 11 | 12 | 13 | 14 | 15 | 16 | 17 | 18 | 19 | 20 | 21 | 22 |

More News

Related Links

AE BH IL IQ JO KW LB OM QA SA SY YE
Gulf Oil and Gas
Copyright © Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.