Iraq
's
draft deal with Royal Dutch Shell PLC (RDSA) to capture and exploit the huge
volumes of gas flared from its giant southern oil fields is expected to produce
2.5 billion cubic feet a day, an Iraqi government spokesman said Wednesday.
"This is the amount of gas that is expected to be produced from four oil
fields covered by the project in the southern region," Ali al-Dabbagh said
in a statement.
Iraq
's
cabinet on Tuesday ratified the deal, paving the way for a final signature of
the project seen crucial to
Iraq
's oil
expansion polices and to provide fuel for its much-needed electricity.
The investment required for the 25-year venture--in which
Baghdad
has
51%, Shell 44% and Mitsubishi Corp. (8058.TO) 5%--is $12.5 billion, Dabbagh said.