Iraq Signs Final $17 billion Shell Gas Deal

[TexasGranny]

Shell Deal

UPDATE 1-Iraq signs final $17 bln Shell gas deal

Sun Nov 27, 2011 9:12am EST

* One of largest Iraq energy deals

* Flared gas to be used to generate power

* Exports possible when domestic needs met

By Ahmed Rasheed

BAGHDAD, Nov 27 (Reuters) - Iraq signed a final $17 billion deal with Royal Dutch Shell and Mitsubishi on Sunday to capture flared gas at southern oilfields, a project that should boost production of badly needed electricity.

The 25-year deal, one of the largest Iraq has signed with foreign energy companies, is meant to help harness more than 700 million cubic feet per day of gas being burned off at southern fields.

The long-awaited deal was completed at a signing ceremony in Baghdad attended by Iraqi Oil Minister Abdul-Kareem Luaibi and Shell Chief Executive Peter Voser.

"This day represents a historical change in the Iraqi oil industry, represented by the best utilisation of the (associated) gas to meet the increasing needs for gas in Iraq," Luaibi said at the ceremony.

OPEC member Iraq has signed a series of deals with foreign oil companies to modernise its energy industry after years of war and economic sanctions.

Increased oil production is expected to bring huge increases in associated gas output and Iraq may soon produce more gas than it can use, opening up the possibility of gas exports.

The Shell deal will involve the creation of the Basra Gas Co joint venture, in which the government will hold 51 percent, Shell 44 percent and Mitsubishi 5 percent.

The project aims to capture gas at Iraq's workhorse field, Rumaila, as well as Zubair and West Qurna.

Intermittent electricity is one of Iraqis' major complaints against their government. Power supply is about half of demand.

[avalancheinvestments]

Does this mean HCL passed????

[Resistall]

Why would Shell sign this deal in a country without a tradeable currency? Please explain or enlighten.

[steveflex7]

This is what I have been waiting for all weekend. But where is there any mention about the dam HCL being passed. This is really frustrating. I wish Adam could share some insight on this .

[Sun Devil]

Fantastic news. Shell must know something we don't.

[Ateam]

Why would shell give a crap about their tradable currency? They are interested in the natural resources! Not everything has to do with an RV

[JWJW11]

Why would shell give a crap about their tradable currency? They are interested in the natural resources! Not everything has to do with an RV

The point is the gas deal being signed w relationship to HCL.....simmer down now....this has everything to do with an RV.....you would think the HCL has to be close.

Once the HCL is done the RV happens

[2DZIRE]

Thank you TexasGranny, great news!

[Carrello]

Fantastic news. Shell must know something we don't.

What they know that we don't, would probably fill an oil tanker, or two.

Thanks TG for the post. This is the news we have been waiting for this weekend because it is thought to indicate that the HCL has been passed.

It don't understand why they would announce a contract signing with such a huge value when the HCL has not been passed as it makes the GOI look inept. And if they have passed the HCL, okay, we have figured that out without a blueprint. So what's the point? What don't we know (other than everything)?

[sourpuss]

How will we be able to invest in Basra..sounds like they got the shares all tied up nice and neat where private investors cannot invest? anybody know. DinarBot and Trinity what do you think?

[Billb]

Thx TexasGranny for the post. At least we are seeing something positive over there. GO RV !!!!!

[Shelley]

What they know that we don't, would probably fill an oil tanker, or two.

Thanks TG for the post. This is the news we have been waiting for this weekend because it is thought to indicate that the HCL has been passed.

It don't understand why they would announce a contract signing with such a huge value when the HCL has not been passed as it makes the GOI look inept. And if they have passed the HCL, okay, we have figured that out without a blueprint. So what's the point? What don't we know (other than everything)?

Carrello, Your right, we probably know a lot less than we think we do !!! I'm thinking the HCL has been passed, just not announced or published in the Gazzette yet (well that's what I'm hoping) Hang on girl, this ride is going to get real exciting :DThanks Texasgranny awsome post !!!!

[leanonme]

My gut feeling on this news is that the HCL must be eminent and Shell probably was informed secretly before the deal was made. JMO.

[army03]

I'm glad after taken some time off to hear something nice. Go Rv

[Alex38]

For the love of all things grand!!! RV already!!!!

[Circlewood]

I just wonder what the significance of this contract compared to the contracts that have been signed in the past between oil companies and Iraq without the HCL completed. Just asking.....

[Russell M]

Sourpuss, the above mentioned percentages do not reflect on any shares that are public, only vested interset and divisions of authority...legal stuff etc.. I'm sure public shares would be available once other things are in order...IMHO..

sp...interest sorry.

Definately seems like a lot of "alignment" to NOT have an RV...(in other words, it sure looks more and more like RV is iminent.)

or Immenent?

...Time to make coffee lol!

[TrinityeXchange]

How will we be able to invest in Basra..sounds like they got the shares all tied up nice and neat where private investors cannot invest? anybody know. DinarBot and Trinity what do you think?

from the small bits of information they are spilling, it looks that the basra oil co is a nationalized or state owned entity. not a private entity and unfortunately is not traded.

[Sanssouci]

And to those who doubted me when I said the Rothschilds have a major stake in this venture, I say...

I told you so. Nonetheless, I hope this bodes well for our investment!

[Canuklady]

Thanks for posting Texas Granny. Sounds like great news coming our way.

[Brisco]

Thanks for the post GRANNY the signs keep pointing in the right direction.

[k98nights]

This is definitely a good sign....

[oneremedy]

Having military equipment but no release of chapter 7. CHECK!

Signing billion $ contracts but no HCL published in gazette. CHECK!

What are they waiting for? If there was no RV near I believe all this would have been taken care of by now. They are waiting to cross t's and dot the i's until the very last minute before an RV.

[pkwood]

My horoscope today said I would be coming in to MONEY on Tuesday!!! GO RV ALREADY

[k98nights]

Having military equipment but no release of chapter 7. CHECK!

Signing billion $ contracts but no HCL published in gazette. CHECK!

What are they waiting for? If there was no RV near I believe all this would have been taken care of by now. They are waiting to cross t's and dot the i's until the very last minute before an RV.

I know man but just remember... this is a people who wipe their butts with their hands for chrissakes.