Iraq reportedly plans to increase production at the Majnoon oilfield from 240,000 bpd now to 450,000 barrels within three years.
Ahmed Abdul Razzaq, the head of a committee in charge of developing the field, told Reuters that the Basra Oil Company (BOC), which will take over operations from Shell, is studying proposals from three oilfield services companies to boost output at the field in southern Iraq.
Ihsan Abdul Jabbar, the head of state-run Basra Oil Company (BOC), told Reuters that the oil ministry discussed the required financial investments and operations at the field with Itochu, and approved the deal.
West Qurna 1, operated by ExxonMobil, currently produces around 405,000 barrels of crude oil per day.
The deal comes as Shell is also preparing to exit the Majnoon oilfield, handing it over to the BOC by the end of June 2018.
Iraq has reportedly reached an agreement with US engineering firm KBR to help manage projects to develop production capacity at the Majnoon oilfield.
Shellis preparing to exit the Majnoon oilfield by the end of June 2018, handing it over to the state-run Basra Oil Company (BOC).
Ihsan Abdul Jabbar, the head of the BOC, told Reuters that he is targeting to cut the cost of the projects’ development by 30 percent this year, adding that the development cost for Majnoon set by Shell in 2017 was $1 billion.
He also said that Iraq was still in talks with another foreign engineering firm to operate the energy facilities at the field, with a deal expected before June.
Shell is now advising the Majnoon management on the tendering process, and on maintaining normal operations at the field, said Abdul Jabbar.
“Petronas confirms its exit from the Majnoon oilfield, Iraq, together with Shell. We will be working with Shell on the handover of the field to the Basra Oil Company [BOC].
“An announcement will be made once details of the handover is finalised.“
Petronas holds a 30-percent stake in the field, with Shell having 45 percent.
On 21st December, Iraq’s Ministry of Oil approved a set of measures relating to the development of the super giant field once Shell relingushes it back to Iraq; IBN Expert Blogger Ahmed Mousa Jiyad described the decision as “an important move in the right direction“.
Any opinions expressed are those of the authors, and do not necessarily reflect the views of Iraq Business News.
Developing Majnoon Oilfield by National Effort — Important Move in the Right Direction
On 21st December, the Ministry of Oil (MoO) approved a set of measures relating to the development of the super giant Majnoon oilfield after Shellrelingushed it back to Iraq
In addition to my emphatic strong and absolute support for the Ministry of Oil on this action regarding Majnoon oilfield, I find it timely to highlight some related basic issues that MoO and other authorities, especially the Council of Ministers and the Parliament, should pay attention to and take the necessary action on them.
Mr Jiyad is an independent development consultant, scholar and Associate with the former Centre for Global Energy Studies (CGES), London. He was formerly a senior economist with the Iraq National Oil Company and Iraq’s Ministry of Oil, Chief Expert for the Council of Ministers, Director at the Ministry of Trade, and International Specialist with UN organizations in Uganda, Sudan and Jordan. He is now based in Norway (Email: mou-jiya(at)online.no, Skype ID: Ahmed Mousa Jiyad). Read more of Mr Jiyad’s biography here.