Monday, September 08, 2008

Iraqi Cabinet approves initial gas deal with Shell.

BAGHDAD — Iraq's Cabinet approved an initial gas agreement Sunday between the Oil Ministry and Royal Dutch Shell PLC to invest in a joint venture to tap natural gas in southern Iraq, a government statement said.

The agreement calls for establishing a joint venture between the state-run South Oil Co. and Shell to exploit the fields, the statement added without any other details.

In June, Oil Minister Hussain al-Shahristani told parliament that Iraq was expected to finalize a deal this summer that would enable it to exploit flared associated gas for domestic use and exports.

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