Iraq is known more for its oil reserves (the world’s third largest) than its gas fields. But at least one major oil company is betting that the way to Iraq’s oil may well be through the gas fields in the country’s disputed, but slightly less violent northern region. That company is Royal Dutch Shell, which has been focusing increasingly on exploiting gas deposits around the world as opportunities in oil have dwindled. The story first broke on wires reporting from Iraq before Shell reluctantly confirmed it was in preliminary discussions (with Iraqi officials and the Turkish companies, including state-controlled TPAO). But Shell said Iraq needed a more peaceful existence before it could send its people to the country and a viable hydrocarbon law before it could finalise any deal. Peace was nowhere in sight yesterday when a bomb killed eight people inside its parliamentary building, the very place in which the hydrocarbon law will need to be passed.

April 13th, 2007 in Iraq | Permalink