Shell eyes Iraqi oil with China

BEIJING, April 15 (UPI) -- A potential deal between Royal Dutch Shell and Chinese national oil companies in Iraq would increase the footprint of the Anglo-Dutch company in the nation.

Shell chief Jeroen van der Veer in Beijing suggested his company was interested in joining forces with China in a number of oil projects in Iraq, The Times of London reports.

"We are in the process of forming partnerships for certain bids, and Chinese companies are a part of that," he said.

The potential deal would include development of oil fields near the northern Iraqi city of Kirkuk.

If the deal is reached, the Times reports, it would be the second-largest venture established to tap the 115 billion barrels of estimated oil reserves in Iraq.

Chinese companies forged ahead with early deals with the Iraqi government that emerged in the wake of the fall of Saddam Hussein in 2003 for a $3 billion deal for the al-Ahdab field in the western Iraqi province of Wasit.

Shell, for its part, is active in the southern Basra region of Iraq, capturing gas flares from oil production there for local power needs.

Van der Veer said further details would emerge once the bid is submitted to the Iraqi government as early as June.