$12bn Deal on Basra Oilfields

Iraq’s South Gas Company (SGC) is to sign a $12bn deal with Royal Dutch Shell and Japan’s Mitsubishi by the end of this year.

SGC director general Ali Khudhier said the company will sign the agreement after it is ratified by the Cabinet.

The proposed deal will involve the capture of associated natural gas produced at fields near the oil hub of Basra, including Rumaila, Iraq’s workhorse, reports Tehrantimes.

The Government of Iraq gave an initial approval for the formation of a joint venture, known as the Basra Gas Company, between SGC, Shell and Mitsubishi.