Put on your seatbelts, here we goJune 23, 2015 9:00
Shell Iraq JV sales formula prices gas above $4
After lengthy pricing discussions, the final draft deal signed in July by Baghdad, Royal Dutch Shell and Mitsubishi offers the multi-billion dollar project's developers more attractive sale prices than are available in most other countries in the region.
August 10, 2011 12:12 by Reuters
separates from the raw gas for sale in Iraq and for export.
The Shell project aims to capture more than 700 million cubic feet per day of gas being burnt off at three huge oilfields in the south — Rumaila, Zubair and West Qurna Phase One — and eventually handle up to 2 billion cubic feet per day.
Iraqi officials have said the 25-year project could include building a LNG export facility with a maximum capacity of 600 million cubic feet of gas per day, so long as Iraq’s own gas needs are satisfied first.
With an unprecedented Iraqi oil production boom expected to bring with it huge increase in gas output, analysts say there should soon be more gas than Iraq can consume, opening up the export market option.
The summary lists a $4.4-billion LNG export unit, in addition to the $12.8-billion estimated cost of rehabilitating existing gas facilities and building new ones, but it does not say when the LNG plant might be built.
The Shell/Mitsubishi partnership expects an internal rate of return on the project of 15 percent, on an initial investment of $6.98 billion, while SGC plans put in $3.7 billion of public funds initially and fund the rest through gas sales.
By Ahmed Rasheed and Daniel Fineren
(Writing by Daniel Fineren; editing by Jason Neely)
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