The total value of the project will be 17 billion dollars. Iraq burns off more gas in percentage terms from its oil fields than any other country. Estimates put the economic loss to Iraq at about 5 million dollars a day. The two companies will capture this natural gas in three different oil fields.
Iraq holds the fifth largest gas reserves in the Middle East. The gas that is captured will be used at present for domestic needs. However later as more gas is made available some will probably be exported.
Iraq will have a 51 per cent ownership stake in the venture to be called South Gas Co. Shell will own 44 per cent and Mitsubishi the rest. The Iraq government plans a fourth licencing round for oil and gas exploration rights next March. For more see this article.