Shell agrees landmark 4.0 bln-dlr gas deal with Iraq

[sabra]

Source: AFP

BAGHDAD (AFP) - Royal Dutch Shell will form a gas venture with energy-rich Iraq worth up to four billion dollars, the oil ministry said Tuesday of the first Western oil major to do a deal with the central government since the 2003 invasion.

The venture to capture unwanted gas burned off during oil production, for domestic consumption and export, is expected to be signed in Baghdad next month, ministry spokesman Assem Jihad told AFP.

The deal with the Anglo-Dutch company is estimated to be worth between three billion and four billion dollars (2.13 billion-2.84 billion euros), the Financial Times newspaper said.

In the past two years, several other energy majors have signed contracts with Iraq's northern Kurdish administration, much to the annoyance of Baghdad.

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"Europe is looking for supplies of gas from Iraq," Jihad told the paper. "Security used to be a deterrent, but now companies feel that security has improved and this will encourage others to come in."

Read more: http://news.yahoo.com/s/afp/20080909/ts_afp/britainiraqenergygas_080909170325