Iraq and Royal Dutch Shell Plc can reach an agreement on a gas project by extending negotiations for another six months in order to settle storage issues, Oil Ministry spokesman Asim Jihad said.
Jihad said there were “no difficulties” in the talks, except that “storage places are currently not ready.”
“There is no harm in extending negotiations for another six months, and I think that there is a chance for negotiations between the two sides to reach an agreement,” he said to Bloomberg News by telephone today from Baghdad.
The Iraqi government and Shell agreed in September 2008 on a project to extract associated gas, which is pumped in conjunction with crude oil production, with a view to exporting it in liquefied form. The agreement had already been extended by six months to March 21.
Shell plans to capture and sell about 700 million cubic feet of gas a day in southern Iraq, making use of fuel that’s currently burnt off. The country flares more than 1 billion cubic feet of gas a day.
( Bloomberg )