Iraq Initials $12-bln Shell Gas Deal

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Source: Reuters

BAGHDAD, July 12 (Reuters) - Iraq signed a final draft agreement on Tuesday with Royal Dutch Shell (RDSa.L: Quote) and Mitsubishi for a $12 billion deal to capture flared gas at southern oilfields.

The long-awaited deal still needs the approval of Iraq's cabinet, Oil Minister Abdul-Kareem Luaibi said in a statement.

Iraq has struggled for years with power blackouts and risks years of electricity shortages until associated gas from oilfields is captured and fed to new power plants.

The joint venture, named Basra Gas Co, would be at the forefront of Iraq's plans to modernise its energy facilities and boost oil exports that hover around levels seen before the U.S.-led invasion in 2003.

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