Sunday, 6 September 2009

Political wrangling delays Iraq gas deal

Political opposition to a gas venture between the Iraqi government, Royal Dutch Shell and Mitsubishi may delay its finalisation until after national elections in January, a senior oil official said on Saturday.

Deputy Oil Minister Ahmed al-Shamma, stressing he spoke for himself rather than the Iraqi Oil Ministry, said he expected the project in southern Iraq would be not be signed until after the Jan. 16 elections in which Iraq will select a new parliament.

"In the current climate, signing the deal and making a decision is very difficult ... essentially because there is strong opposition, used by politicians for other reasons not related to gas and investment in gas for political objectives."

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