Multibillion dollar project has been announced to be started by Royal Dutch Shell for tapping natural gas at the south of Iraq. The total cost allocated for this project is nearly around 17 billion USD. The project will gather, process and market associated gas, a by-product of producing oil, from the three major oilfields of the province Basra, which is considered as petroleum enriched zone at the south of Iraq.
In the 25 year partnership, Iraq holds 51 percent whereas Shell owes 44 percent and another company is involved in this, i.e. Japanese company Mitsubishi, which holds 5 percent share only. Produced gas will be mainly used for the domestic power or energy needs. However, after meeting the domestic needs, remaining will be used for export. The data has been collected from Shell’s official website.
Iraq burns off almost half of the 1.5 billion cubic feet per day of gas that it produces. The project has an aim to produce 700 million cubic feet per day gas from the three oilfields of Iraq.