Delayed signing a contract gas investment cost Iraq billions of dollars
His Iraqi officials have expressed doubts the deal to be concluded with Dutch “Shell”, which amounts to billions of dollars, questioning the real significance of this deal, as agreed an oil expert with government officials, that the delay in signing a contract for exploitation of gas with Shell for investments oil and gas, costing Iraq billions of dollars a year, urging the government to resolve the contract, whatever the reasons for the delay, and stop the losses caused by the burning of gas associated with oil extracted.
Iraqi politician said earlier, the Agency (UR) on condition of anonymity, said that rumors have spread within the corridors of the Council of Ministers to the effect, that the United States are instructed about it after a massive shortfall in its budget, which amounted to about $ 900 billion in 7 months only, leaving the cord at liberty for the recipient in order to shave in order to envision the link between the budget deficit and U.S. investment in Iraq.
The Deputy Prime Minister for Energy, Hussain al-Shahristani, the oil ministry came to a draft of a final contract with Shell on a deal worth billions of dollars to collect the gas emitted from the southern fields, and sent a draft agreement to the Cabinet for approval.
The former director of the Southern Oil Company Jabbar Allaibi, that “delay in the convening of Shell Gas South, the issue has several aspects, The first was that the contract from the outset was hasty, we used to believe that it should apply for the competition to win the project, several companies and not one company, was the payment of the Shell finally alone in our view an opinion is correct. “
“The main problem in such contracts, was running the command and make the decision, is assumed that the issue of such importance are in favor of the national economy of Iraq must be resolved according to the national interest, regardless of disagreements fundamental, these projects should not be subject to interpretations and interests, Ltd. “he said, adding that” the delay in gas exploitation project is the responsibility of the ministry. “
He pointed out to coffee to “work on the contract began to make a mistake and clear, as it should at least have to compete three companies, and as long as they initially were incorrect they must face a decade in the way a number of errors”, calling for “re-evaluate the size of the contract and not the contract itself and the entry of partners with Shell to compete. “
He concluded by saying: “There is supposed to be held accountable from the point of control in the delayed implementation of this contract is important to stop the waste of Iraq’s wealth, which should be a governmental entity.”
The expert estimated the volume of oil loss due to non-exploitation of gas associated with oil to 13.5 billion dollars, equivalent to the cost of building the port of Faw, a project waiting for implementation of large investment and the allocation of money in years to improve the Iraqi economy.
For his part, said an official of the oil and gas in the Basra Governorate Council Farid Khalid, said that “the opinion of the local government in Basra on the Shell contract, is that the gas burning the exploitation of a great loss of Basra, and must be resolved Decade Every day burn 700 million Mqmq, or enough to generate 2000 Mika watts of electricity. “
He explained that “the delay does not serve the one we need the gas to feed power plants, at least,” pointing out that “the processing of gas-electric power stations led sometimes to stop the loss of a petrochemical plant continues the country.”
He added: “We desperately need the gas, and strive to complete the investment contract Saybah, and call on the government to expedite the resolution of contract by Shell this year,” referring to “the possibility of government contracting with local Japanese companies.”
As Director of the South Gas Company Ali Hussein Khudair, “has been agreed with the companies, a global human rights to write the draft agreement, if the draft came as our imaginations will be forwarded directly to the General Secretariat of the Council of Ministers to approve the contract.”
He added: “At the Istanbul meeting last solved a lot of outstanding issues, and we have reached an advanced stage of the final agreement, and we are closer today to sign up than ever before.”
While oil expert, Jabbar Hilfi, that the delay in signing the contract regardless of the nature of the obstacles and those who stand behind it “leads to a huge waste of gas, it is certain that there are about one billion standard cubic feet, not 700 million Mqmq wasted a day, a rate of 70 million dollars a day, about the current price of gas is between 8 to 16 dollars. “
He added: “This delay is also forbidden to benefit from the techniques of Shell at the level of production and training, as well as wasting the best time, in addition to the delay generated when the international companies working non-confidence.”
The Shell known as Shell, is a multinational oil company British and Dutch origin, is the second largest private energy company in the world. Shell was founded in 1907 and is headquartered in The Hague, Netherlands, and has a central office in London, United Kingdom. The United States has 40% of its capital.
