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Iraq Inks Gas Joint Venture Agreement

Iraq has finalized a $17-billion deal over 25 years with Royal Dutch Shell and Mitsubishi to capture and process gas from its southern oil fields.

Earlier this month the Iraqi cabinet approved the deal which creates the Basra Gas Company, a joint venture to process gas from three major oil fields in Basra province that is currently wasted due to a lack of infrastructure.

Iraq's state-owned South Gas Company will hold 51 percent of the new venture, Royal Dutch Shell 44 percent, and Mitsubishi 5 percent.

Government spokesman Ali al-Dabbagh said the output capacity of the proposed project will be nearly 57 million cubic meters per day.

compiled from agency reports