Tuesday, April 17, 2007
Shell may be first foreign oil and gas company to re-enter Iraq
Oil
(The New Anatolian) - Shell is poised to become the first oil and gas major to agree terms to re-enter Iraq following reports that it has struck a deal with Turkey’s state oil company, TPAO, to extract gas in the war-torn country, the Times said. The report went on to say that, “The Anglo-Dutch giant is expected to work in partnership with TPAO to build a pipeline from the Kirkuk field near Kurdistan to Ceyhan on the Mediterranean, according to reports.
(The New Anatolian) - Shell is poised to become the first oil and gas major to agree terms to re-enter Iraq following reports that it has struck a deal with Turkey’s state oil company, TPAO, to extract gas in the war-torn country, the Times said. The report went on to say that, “The Anglo-Dutch giant is expected to work in partnership with TPAO to build a pipeline from the Kirkuk field near Kurdistan to Ceyhan on the Mediterranean, according to reports.
A spokesman for the Turkish Energy Ministry said: “An agreement has been reached which has to be ratified by the administration in Baghdad.” Shell refused to rule out an agreement with TPAO but insisted there was still no legal framework in place in Baghdad to allow any contracts to be issued to foreign companies. Ian Bromilow, Shell’s chairman for Iraq, told The Times: “We have discussions but the contents of those discussions are really quite confidential. It is still very, very unclear what will happen in the sense that there is no petroleum law in place and the issue of security,” Bromilow said.
Iraq has some of the biggest oil and gas reserves in the world and speculation about Shell’s involvement has mounted in recent weeks. The oil major has long expressed an interest in returning to the country after being forced out when the industry was nationalised in 1972, and signed a memorandum of understanding to develop a plan for Iraq’s gas infrastructure in 2005. Last month industry in-siders claimed Shell managers met Iraqi officials in Oman to discuss investment terms for any future deals. The Iraqi Parliament is due to debate a draft Petroleum Law soon. Ratification would open the doors to billions of pounds of foreign investment.
Labels: Ceyhan, Gas, Ian Bromilow, Kirkuk, Shell, TPAO, Turkey
