Shell 'Optimistic' About Gas Capture Hurdles

By John Lee.

Shell's commercial general manager for Iraq, Arne de Kock, has told Reuters that two key hurdles must be cleared before the company can move forward with its giant gas capture project in southern Iraq.

But he added that he was "optimistic" the government's Council of Ministers will sign off on the issues of asset transfers and land leases.

"We want to make sure we have all the commercial legalities in place before we proceed", said Kock.

Along with Mitsubishi, the company finalised an agreement with Baghdad late last year for the $17-billion Basra gas project, which is intended to handle 2 billion cubic feet per day by 2017.

(Source: Reuters)

One Response to Shell 'Optimistic' About Gas Capture Hurdles

  1. Ahmed Mousa Jiyad 20th September 2012 at 15:58 #

    Where is the truth??
    It is rather surprising to read what Mr. Kock has reportedly said, “We want to make sure we have all the commercial legalities in place before we proceed”, and he identified two issues: Asset Transfers and Land Leases.
    If this is the case on 21st September 2012, the date of his statement given to Reuters, so what has happened to previous assurances given by Shell?
    On 11th July 2012, a statement from Dr. Shahristani's office said Hans Nijkamp, Shell vice-president and head of the company's Iraq projects, told Iraq Deputy Prime Minister for Energy Hussain al-Shahristani that Shell plans to start pumping gas from its gas joint venture in southern Iraq (Basra Gas Company-BGC) in the next three weeks at 60 million cubic feet per day and output would be increased by a further 40 million cubic feet a day several weeks after pumping starts.
    Therefore, if one takes what Hans Nijkamp had said on 11th July 2012 the output should be 100 million cubic feet a day now. However, it appears from Arne de Kock statement that Shell (BGC) has not proceeded yet!! These two statements from Shell are inconsistent, cause concerns and prompt me to ask where is the truth??
    Ahmed Mousa Jiyad,
    Iraq/ Development Consultancy and Research,
    [email protected]
    20 Sept 2012