Basra Preparing to Sue the Ministry of Oil Gas Company Background Without Coordination With Basra’s Governorate Council
|November 27, 2011||Filled under Iraq Daily News|
Basra Governorate Council, confirmed that he intended to sue the Ministry of oil, which accused it of ignoring his powers and lack of coordination with him, on the establishment of the Basra gas company, without objecting to the founding of the company.
He said the Chairman of the Committee on oil and gas Conservation Board, Khalid said in an interview for a unique “Sumerian news”, “the Presidency of the Council in connection with the lawyers to sue the Ministry of oil”, stating that “action will be taken as a reaction to the failure to return to the Council when the final decision to establish the Basra gas company with Royal Dutch Shell, Mitsubishi, and put an end to the phenomenon of ignoring the powers of the Ministry Council on the conclusion of contracts with foreign companies.”
Khaled stressed that “the Constitution within the local government in the oil-producing provinces participate in the country’s oil policy but the Ministry insisted that marginalization,” adding that “the Council did not object to the Basra gas company but on how the Ministry with the Council,” he said, adding that “company represents a good step towards the development of the Iraqi economy, because it will exploit the associated gas is wasted since years, during the production of crude oil and cause worsening environmental pollution.”
For his part, Vice President of the Provincial Assembly in an interview with Ahmed Al-Sulaiti “Sumerian news”, “Basra, the right to oppose the handling of the oil Ministry, and complain to the competent courts,” he said, adding that “If the final contract signing of the founding of the Basra gas company without coordination with local government, it is ultra vires to the Constitution”, stressing that “the lawsuit has not yet, but is under consideration by the members of the Council.”
Cabinet has approved, in the 15th of this month to establish a company which will address the Basra gas associated gas of oil from Rumaila and Zubair fields and West Qurna in partnership between the South gas company oil Ministry-owned 51 percent, Royal Dutch Shell companies by 44% and Mitsubishi Japan 5%.”
According to the Ministry of oil, Iraq proceeds from Basra gas company will reach 31 billion dollars over the next 25 years, confirming that the production company will need power plants amounting to more than 3,500 million cubic feet, a banner to the investment cost of the project company limits of 17 billion dollars, 12 billion and $ 600 million for the rehabilitation of existing facilities and create new units.
Preliminary estimates indicate that Iraq possessed stockpiles of natural gas, estimated at 112 trillion cubic feet, but that 700 million cubic feet of burning daily during oil production operations and wasted due to lack of infrastructure for production.
The Iraqi oil Ministry in May last year, a third round of licences to develop three gas fields are fields mansourieh in Diyala, Basra, and staff walsibh in Ramadi, the Ministry announced several weeks ago on a fourth round of licences, which aims to explore 12 2.607 and gas, are located in the governorates of Anbar, Ninawa, Najaf, Diyala, Wasit and Diwaniyah.
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