Project Location: Nassiriya Details : Iraqi officials have reached an agreement with Nippon and its partners, oil explorer Inpex and plant engineering player JGC Corporation, on financing a possible deal to develop Nassiriya, which Iraq says has capacity to produce 100,000 barrels per day (bpd) within 18 months.
Following an agreement with a wholly-owned affiliate of Royal Dutch Shell, Mitsubishi Corporation (MC) has accepted an invitation letter issued by the Iraqi Ministry of Oil (MoO) and Shell to take a five per cent interest in the proposed South Gas Utilization Project joint venture (JV) currently under development by the MoO and Shell.
As a new partner in the proposed JV, MC brings knowledge of the existing South Gas Company facilities and complementary technical and commercial capabilities in order to enhance the value of the project.
Italy's Eni has also been vying for the contract, but Iraqi officials have signaled it is almost certain to go to the Japanese companies.
The value of initial investment in a joint venture with Shell and Mitsubishi, to capture flare gas, would be between $8 billion and $10 billion, based on an initial expected quantity of gas to be processed daily.
The project, in which Iraq's South Gas Company will hold a 51 per cent stake and the foreign companies 49 per cent, seeks to capitalize on gas that is released as a by-product of oil extraction and is currently burned off.
Contact Details: Ministry of Oil PO Box 6178 Baghdad Iraq Phone: +946 1 8177000/50/51 (Int'l - 286 3103) Fax: +946 1 8869432 (Int'l - 286 9432) Email: firstname.lastname@example.org; email@example.com
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|Publication:||Saudi Economic Survey|
|Article Type:||Brief article|
|Date:||Oct 7, 2009|
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