Shell nears $12bn Iraq gas deal

Pending: Shell and Iraq to sign $12 billion deal to capture flared gas at fields like Rumaila

REUTERS/ATEF HASSAN

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By News Wires

 08 July 2011 20:29 GMT

Anglo-Dutch supermajor Shell and Iraq have settled most pending legal issues that have delayed a $12 billion gas deal for more than two years and an initial pact could be signed as early as next week, a senior Iraqi oil official said today.

Since the signing of an initial agreement in 2008 to begin negotiations on the project, the Iraqi oil ministry has been working to finalise a joint venture between its South Gas, Shell and Japan's Mitsubishi to capture and exploit the huge volumes of gas flared from three giant southern oil fields, Rumaila, Zubair and West Qurna Phase 1.

"We are meeting with Shell and Mitsubishi in the middle of next week to finalise some points and we are hoping to sign an initial contract the following day," the official told Dow Jones.

The…

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