Shell Inks $17B Iraq Accord

Royal Dutch Shell

, Europe's largest oil company, and Japan's Mitsubishi Corp. put the finishing touches on a $17 billion contract with Iraq to boost natural gas production at the country's oil fields. Iraq, an OPEC member, has the fifth-largest gas reserves in the Middle East, according to Bloomberg. The 25-year agreement will see the Iraqi government hold a 51% interest in the venture with Shell owning 44%. Mitsubishi will own the remaining 5%. The Shell-Mitsubishi venture will have an initial capital of $20 million, Bloomberg reported. Iraq has been turning to Western oil majors such as Shell to help develop its energy resources following the fall of Saddam Hussein's oppressive regime in 2003.