Iraq and Kuwait near agreement on price for gas exports
26/11/2017 09:35
KUWAIT CITY, Nov 26 (Reuters) - Iraq and Kuwait have reached
a preliminary agreement on a price for gas exports, Kuwaiti oil
minister Issam Al-Marzouq told a local newspaper on Sunday,
clearing the way to a deal for a pipeline and petrochemical
project.
Kuwait is waiting for the Iraqi government's final approval
this week, Marzouq told al-Siyasa, without stating the price.
Iraq would agree to export 50 million cubic feet (mcf) of
gas per day for ten years, increasing to 200 mcf per day during
that time, he said.
The exports, to come from Iraq's Rumaila field, would pay
off Baghdad's final $4.6 billion in war reparations owed for its
1990 invasion of Kuwait.
Marzouq announced the proposal last month, but talks between
the two countries have faltered since then over price and the
location of the petrochemical plant. urn:newsml:reuters.com:*:nL5N1NE3GA
Iraq hired Japan's Toyo Engineering 6330.T to help build
the project.
Iraq used to supply Kuwait with gas from Rumaila. Volumes
reached as much as 400 mcf per day but stopped shortly after the
1990 invasion.
In his interview, Marzouq also expressed optimism that the
Organization of Petroleum Exporting Countries (OPEC) and others
would agree to extend their agreement limiting crude production.
"There is almost agreement to extend it, but the duration is
still under study," he said.
OPEC meets on Nov. 30 in Vienna to decide whether to extend
global output cuts beyond March.
(Reporting by Ahmed Hagagy, Writing by Katie Paul; Editing by
Elaine Hardcastle)
((Katie.Paul@thomsonreuters.com;))
Keywords: IRAQ KUWAIT/GAS