The Iraqi Ministry of Oil and a wholly owned affiliate of Royal Dutch Shell plc ("Shell") signed a Heads of Agreement that sets the commercial principles to establish an incorporated joint venture (the "JV") between the South Gas Company and Shell for the processing and marketing of all associated natural gas produced in the Governorate of Basra in southern Iraq, an area covering some 19,000 square kilometres.

The Iraqi ministry of oil and a wholly owned affiliate of Royal Dutch Shell have signed a heads of agreement to establish a joint venture between the South Gas Company and Shell for the processing and marketing of natural gas produced in the governorate of Basra in southern Iraq.