That challenge is turning Iraq’s generous endowment of natural gas into a blessing for this and future generations.
BGC is an incorporated joint venture, with its headquarters in Basrah.
South Gas Company is our largest shareholder and holds a 51 per cent share of BGC. Our other shareholders are the Anglo-Dutch supermajor Royal Dutch Shell plc (44 per cent) and Mitsubishi of Japan (five per cent).
South Gas Company is an Iraqi state-owned company. It previously owned and operated the natural gas infrastructure in Basrah Province. Almost all of this infrastructure was transferred into BGC at the company’s inception.
More than 5,000 staff transferred from South Gas Company and became BGC employees. Many are highly-experienced engineers with years of experience working on our assets. This includes about two-thirds of our executive leadership team.
Our objective of rehabilitating and expanding gas processing capacity requires investment. Together, BGC’s shareholders plan to invest over the coming three years on rehabilitation and development projects that are already underway.
Spending this money carefully is a heavy responsibility. Each of our shareholders has other pressing demands on its resources in Iraq, and elsewhere. At BGC we are focused on executing our work efficiently. We are very aware of our duty to spend our investors’ funds wisely to deliver sustained and profitable progress.
Under the agreements that established BGC, the company funds its activities using its revenues from the sale of gas and petroleum products and by contributions from its shareholders. These contributions are in proportion to their shareholdings in the company, once the value of Shell and Mitsubishi’s financial contributions matches the value of South Gas Company’s initial asset contribution.