Shell and Mitsubishi are preparing to begin a delayed $12.5 billion natural-gas project in Iraq, according to a report from Bloomberg.
Vice president and country chairman Hans Nijkamp said in an interview published on the website of Energy Exchange, organizer of an Iraqi energy conference to be held in Istanbul in September:
“Shell and Mitsubishi are now ready for execution of the project. We are working with our Iraq partners to reach final agreements as soon as possible … A number of external reviews have been carried out by international firms on behalf of the Ministry of Oil and it has also taken Shell 250,000 engineering man-hours on site to assess the scope of work.”
The project with Shell and Mitsubishi involves developing and capturing gas that is being flared, or burned off, in southern Iraq. Some 700 million cubic feet are flared daily in the south of Iraq and the quantity is sufficient to generate an estimated 4,500 megawatts, Nijkamp said.