Iraq extends gas MOU with Shell- oil minister

BAGHDAD, March 7 (Reuters) - Iraq has extended a memorandum of understanding with Royal Dutch Shell RDSa.L on a natural gas venture around the southern oil hub of Basra for six months from March 2010, Iraq's Oil Minister told Reuters on Sunday.

“We will resume talks with Shell after the election,” the minister, Hussain al-Shahristani, said after he cast his vote in the country’s second full parliamentary election since the 2003 U.S.-led invasion. “The Shell contract is in its final form after Shell accepted our remarks and demands.”

Iraq has been working to finalize the venture between its South Gas Company, Shell and Mitsubishi 8058.T. The deal would capture huge amounts of gas currently wasted by being flared at oilfields and use it for the domestic market or exports. (Reporting by Ahmed Rasheed; Editing by Rania El Gamal)


Reuters Breakingviews is the world's leading source of agenda-setting financial insight. As the Reuters brand for financial commentary, we dissect the big business and economic stories as they break around the world every day. A global team of about 30 correspondents in New York, London, Hong Kong and other major cities provides expert analysis in real time.

Sign up for a free trial of our full service at and follow us on Twitter @Breakingviews and at All opinions expressed are those of the authors.