Shell will hold a 44% interest in the JV, which will be called Basrah Gas Company, while Iraq’s South Gas Company and Mitsubishi will hold a 51% and a 5% stake, respectively.
The JV will collect and process raw gas from the Rumaila, Zubair and West Qurna 1 and Majnoon fields, and Iraq will be the primary market for the natural gas, but any surplus can be exported.
According to Shell, some 700 million standard cubic feet of gas is currently burned off each day in southern Iraq.
Shell CEO Peter Voser said capturing this gas will create a reliable supply of energy for Iraq while at the same time reducing greenhouse-gas emissions.
