Oil giant Shell hopes its plan to use the huge amount of associated gas expected to come from Iraq’s oil output growth over the next decade will be approved soon, the company’s chief executive Peter Voser said on Tuesday
According to the report from Reuters, he did not clarify what he meant by ‘soon’. “We have made good progress”, he said, “a little bit slower than anticipated”.
Iraq has been working to finalise a $12 billion [14.6 trillion Iraqi dinar] joint venture between the state-owned South Gas Co, Shell and Mitsubishi since an initial agreement was signed in 2008.
Although the previous Iraqi government approved a deal in principle, it has yet to be finalised.
Iraq flares around 700 million cubic feet of gas every day at its southern oilfields — energy it could harness to generate electricity and end the chronic power blackouts that still plague the country almost eight years after the U.S.-led invasion.
Voser said he particularly saw plenty of demand for power in the Basra area of Iraq.