Iraq Finally on World Gas Map

The Iraqi council of ministers has finally given its final stamp of approval today for the first gas deal of its kind in Iraq’s energy history based on the agreement initialized on July 12 between Royal Dutch Shell, Mitsubishi and South Gas Co, to capture and process flared gas in southern Iraq. This deal would put Iraq on the global gas map, something long due in view of the country’s…

Laith Al-Shaher

Laith Al-Shaher is the Director General of the legal department at the Iraqi oil ministry and one of the main negotiators of the South Gas Project with Royal/Dutch Shell and Mitsubishi. In a first for an oil ministry official, he spells out the main features of the deal in an interview with IOF editor Ruba Husari in Baghdad, as well as the nature of Basrah Gas Co, the first gas joint venture…

The Real Winners

In retrospect, and despite what was considered at the time a ridiculously low fee, producing oil fields awarded to international oil companies in the first bid round turned out to be the most lucrative in terms of the service fee they will be paid. That’s excluding the three fields that will be producing less than 200,000 b/d (see table below). Even with the protracted negotiations over amendments to the final producing…