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| Iraq strikes gas deal with Shell | Iraq strikes gas deal with Shell |
| (40 minutes later) | |
| Iraq has agreed to set up a joint venture with oil and gas giant Royal Dutch Shell to invest in developing the country's natural gas supply. | Iraq has agreed to set up a joint venture with oil and gas giant Royal Dutch Shell to invest in developing the country's natural gas supply. |
| The deal, which will see Shell supply the local market, is the second between the government and a foreign firm since the US-led invasion of Iraq in 2003. | The deal, which will see Shell supply the local market, is the second between the government and a foreign firm since the US-led invasion of Iraq in 2003. |
| It was signed by Iraqi Oil Minister Hussein al-Shahristani. | It was signed by Iraqi Oil Minister Hussein al-Shahristani. |
| Iraq has enormous potential as an oil and gas supplier but has so far lacked the investment for it to be realised. | Iraq has enormous potential as an oil and gas supplier but has so far lacked the investment for it to be realised. |
| Under the terms of the deal, signed on Monday, Iraq will have 51% in the venture and Shell 49%. | Under the terms of the deal, signed on Monday, Iraq will have 51% in the venture and Shell 49%. |
| The country will invest in natural gas in the oil-rich southern province of Basra. | |
| International investment | |
| The venture will initially focus on capturing some 700 million cubic feet of natural gas released per day as a by-product of crude oil extraction in the region. | |
| But there are also plans to create a facility to produce liquefied natural gas - which is not a by-product of oil - for export. | |
| With Europe keen to reduce its reliance on Russia for its energy supply, Iraq is seen as a viable alternative. | |
| Iraq has proven natural gas reserves of about 112 trillion cubic feet, but analysts believe this is likely to represent only a fraction of what exists. | |
| It opened its lucrative oil and gas fields to a select group of foreign companies in June to rehabilitate its aging facilities. | |
| The first foreign oil deal came when Iraq agreed a $3bn (£1.6bn) oil service contract with China. |