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Last Updated: Sep 8, 2008 - 8:49:26 AM |
The agreement calls for establishing a joint venture between the
state-run South Oil Co. and Shell to exploit the fields, the statement
added without any other details.
Shell is expected to invest US$3 billion to US$4 billion over five
years to gather at least 500-600 million cubic feet of flared gas per
day from the southern fields, the AP reported.
The state-run South Oil Co. is expected to control 51 percent of the
venture, while Shell would hold the remaining 49 percent.
The agreement provides for construction of a number of liquefied
natural gas facilities, the statement said.
Iraqi oil exports eased slightly in August due to lower shipments of
Kirkuk crude from the country’s north, shipping data compiled by
Reuters showed.
Exports averaged 1.83 million barrels per day (bpd), compared with 1.85
million bpd in July, according to Reuters. The total comprised 1.52
million bpd from the south and 310,000 bpd from the north.
Iraq has built up output this year due to more stable flows from the
north, where sabotage and technical problems previously kept production
all but idle, allowing Baghdad to earn more cash to fund reconstruction.
Exports of Kirkuk crude from the north declined because there were some
interruptions in pumping along the pipeline to Turkey, shipping sources
said.
Iraqi Oil Minister Hussein Shahristani called Japanese companies
working in oil industry to participate in Iraq reconstruction, the
ministry spokesman Issam Jihad said.
He also added that the Japanese cooperation with the Ministry in oil
field is very wide, al-Sumaria reported.
Jihad also pointed out that Oil Minister, while receiving Japanese
officials in Baghdad and a number of Japanese businessmen, called
Japanese industries specialized in Oil Industry to enter the Iraqi
market and to participate in reconstruction of Iraq economy.
He also added that Japanese societies uttered willingness to cooperate
with Iraq Oil Ministry in different fields especially after the
stabilization of the security situation in Iraq.
Iraqi oil policy has finally surfaced on the radar screens of local
politics, five years after the US-led invasion. However, much confusion
and misunderstanding still surrounds the exact process of how the
industry would develop and what role would be retained for the proposed
National Oil Company (NOC) and its affiliates, and how wide a door
would be opened for International Oil Companies (IOCs).
While the Ministry of Oil has strived to retain a clear role for the
federal authorities in drawing up an oil policy, it has faced
persistent challenges from both the Kurdistan Regional Government (KRG)
and from federal institutions in Iraq, including the cabinet, as well
as private interests, who point to the fact that the KRG has been able
to sign 22 contracts with the IOCs, while the federal Ministry of Oil
has not signed a single development agreement so far, writes Walid
Khadduri for Petroleumworld.
Source:Ocnus.net 2008
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