Shell lands big gas deal in Iraq

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Royal Dutch Shell has been awarded a $4 billion
(£2.26 billion) contract in the Basra region, the main base for British troops after the overthrowing of the former Iraqi regime.

The contract is to supply gas for Iraqi domestic use but any excess can, and probably will be, supplied to Europe. "Europe is looking for supplies of gas from Iraq," said oil ministry spokesman Assem Jihad. "Companies feel security has improved and this will encourage others to come in."

Shell has been charged with capturing the huge amount of gas that is currently burned off by the oil industry in southern Iraq for safety reasons.

Shell will take a 49% stake in the joint venture and the Iraq oil ministry 51%.