Shell receives permission for Iraq gas exploration

Oil giant Royal Dutch Shell and Mitsubishi Corporation have received permission from the Iraqi government for a joint gas exploration project.

The venture will see the firms extract natural gas from three sites within the Middle Eastern country and bosses at Shell believe the scheme could have a positive impact on air quality in the long term.

Iraq's South Gas Company will hold 51 per cent of the business, while Shell will take on 44 per cent. Mitsubishi Corporation will account for the remaining five per cent.

Shell stated that burning 700 million cubic feet of gas only creates the same emissions as those produced by 3.5 million cars.

"Capturing this gas will create a reliable supply of energy for Iraq while at the same time reducing greenhouse-gas emissions," commented Shell's chief executive officer Peter Voser.

Shell recently reported it had discovered a new oil well 150km from the shore of French Guiana.

Posted by Lauren Steadman