Iraq: South Gas Co and Shell Sign JV Agreement
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Tuesday, 23 September 2008 |
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The Ministry of Oil of the Republic of Iraq and Shell plc have signed
a Heads of Agreement that sets the commercial principles to establish
an incorporated joint venture between the South Gas Company and Shell
for the processing and marketing of all associated natural gas produced
in the Governorate of Basra in southern Iraq, an area covering some
19,000 square kilometres.
The signature follows the approval [ref: 329/2008] of the Iraqi Council of Ministers on 7th September 2008. The JV structure is the model chosen by the Ministry of Oil as the vehicle to create a world-class natural gas industry in Iraq. South Gas Company will be the 51 percent majority shareholder in the JV, with Shell holding 49 percent.
Speaking at the signing ceremony in Baghdad, Linda Cook, Executive Director for Royal Dutch Shell, said today: "Shell is an industry leader in the global natural gas sector. Iraq has one of the world's largest natural gas resource bases and I am delighted that the Iraqi Government including the Ministry of Oil have supported Shell as the partner for joint venture with the South Gas Company. We look forward to moving jointly to implement the JV and begin investing in the energy infrastructure in Iraq."
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