The Basra Gas Company, a conglomerate between Shell, Mitsubishi and the Iraqi state-run South Gas Company, will export its first shipment of natural gas for from Iraq, the Ministry of Oil has announced via spokesman, Asim Jihad. The tanker will depart from the port of Umm Qasr in southern Iraq. It was in November 2011 that Iraq had signed a contract to form Basra Gas Company and jointly harvest, produce and sell natural gas from oil-rich Basra's three fields: Rumaila, with 17.8 billion-barrels; Zubair with 4.1 billion barrels; West Qurna Stage 1, with 8.6 billion barrels. The International Energy Agency reported Iraq has estimated natural gas reserves of 112 trillion cubic meters, meaning it is the 11th largest globally.
Basra Gas Company which is made up of Iraq's 51%, Shell owning 44% and Mitsubishi owning 5% was formed to continue for 25 years in a $17US billion deal. This will no doubt assist Iraq with their economic struggle as national budgets are largely funding the effort to solve the geo political conflict affecting not only oil prices, but the government infrastructure as government posts are not being renewed, ministries are merged, construction is halted and new taxes are implemented.
The Ministry of Oil reported lower exports than expected at 3.225 million barrels per day in February 2016 and grossed $2.2 billion ($23 per barrel). Yet with 95% of Iraq's budget of 106 trillion Iraqi dinar ($89.7 billion dollars) relying on oil revenues, they are operating under a 24 trillion dinar deficit ($20.5 billion). The Iraqi government will be forced to get loans from international and local lenders.