In 2011, Shell continued to help improve Iraq’s energy supplies, build skills among local people and contribute revenues to the government that can help rebuild the country. The company also continued to forge stronger relationships with communities close to its operations.
In a significant step forward for the country’s energy future, Iraq’s Ministry of Oil approved a final agreement in late 2011 for Shell and partners to set up a joint venture, the Basrah Gas Company, to capture gas produced with oil from some fields in the south. Much of this gas is currently flared. When the new venture starts operations, the gas will be used to generate electricity for the national grid, adding to the vital energy supplies Iraq needs if its economy is to prosper. In the future, some gas may be exported to earn further revenue for the government. Shell has a 44% interest in this joint venture, Iraq’s South Gas Company has 51% and Mitsubishi the remaining 5%.