Iraq: Two steps forward, one step back

SHELL became the first western energy major to strike a significant post-war hydrocarbons deal with the country last month, following the cabinet's decision to approve a project to process and market all the associated gas that is flared in the Basra governorate, an area covering some 19,000 square km. That followed another cabinet decision to approve a deal with China National Petroleum Corporation (CNPC) that will lead to development of the Al-Ahdab oilfield.