Anatomy of a Deal

By Asri Mousa

(Mr Asri Mousa was one of the main Iraqi negotiators of the south gas utilization project with Royal Dutch Shell and Mitsubishi Corp between 2008 and 2011)

Iraq has been, since 2008, negotiating with Royal Dutch Shell to establish a joint gas company to capture flared gas from three giant oil fields in the province of Basra. The joint venture is based on a proposal by Iraq to create a joint world class gas company with Iraq’s state‐owned South Gas Company (SGC) to hold 51% stake and Shell and another partner to hold the remaining 49%.

Initially, Shell was hesitant to accept three prerequisites in Iraq’s proposal: the first was the priority of meeting local demand for the products of the proposed company; the second was that the existing assets of SGC are to be evaluated and counted as part of its contribution towards its …

Basrah Gas Co

By Asri Mousa

The Basra Gas Company project is a great milestone to Iraq’s gas industry and a remarkable achievement for the country in its endeavor to monetize its natural resources. The utilization of associated gas is a huge challenge to the oil industry and many oil-producing countries worldwide. Russia, a leading world gas producer and exporter, flares 3500 million cubic feet of associated gas daily, about five times the amounts Iraq is flaring. Other gas-flaring countries include Iran, Kuwait, Qatar, Saudi Arabia, Algeria and many other OPEC and non-OPEC countries. Most of those who opposed the BGC joint venture did not have enough knowledge about the complexity of the economic and commercial sides of associated gas utilization projects and the technical nature and the risks characterizing the long chain of gas production, processing, transportation and marketing.

The upcoming elementary task for Iraq now is to define domestic …

ExxonMobil in KRG

By Ruba Husari

The Blocks:

1. Al Qush: northwest of Erbil

2. Baeshiqa: southeast of Al Qush, south of Ain Sifni

3. Pirmam:  north of Mala Omar

4. Betwata: east of Harir

5. Qara-Hanjeer: south-southwest of Chemchamal

6. Un-named Block 6: NNE of Arbat.

Exxon Blocks Map- unofficial

KRG Blocks Map…