Shell to Withdraw from Iraq's Majnoon Oilfield

Source: Reuters 9/12/2017, Location: Middle East

Royal Dutch Shell is seeking to sell Iraq’s Majnoon oilfield and the oil ministry has started preparations to finalize its exit, according to an oil ministry letter and oil officials. A letter signed by Iraqi oil minister Jabar al-Luaibi and dated Aug. 23 and directed to Shell Iraq Petroleum Development gave approval for Shell to quit Majnoon, an oilfield near Basrah which started production in 2014.

“We respect your desire and decision to seek an acceptable end of Shell Iraq Petroleum Development SIPD’s interest in Majnoon,” the oil ministry letter said, a copy of which was seen by Reuters. SIPD is Shell’s local unit.

Three Iraqi oil officials and an Iraqi senior engineer working with Shell in Majnoon confirmed the letter’s authenticity. A Shell spokesman was not immediately available for comment.

In November, industry sources had told Reuters that Shell was considering selling out of its oil fields in Iraq as part of its global $30 billion asset disposal program.

Shell is the operator of the giant Majnoon field near Basrah in southern Iraq which started production in 2014. The officials said the oil ministry and Royal Dutch Shell had been discussing investment budgets and production activities but failed to reach a deal.

“We failed to reach an agreement with Shell over its Majnoon operations, including production plans and investments budgets. We think it’s for the interest of all parties that Shell should withdraw,” said an oil official who attended a meeting last month in the oil ministry to discuss how to manage Majnoon after the withdrawal of Shell.

Shell holds a 45 percent interest in Majnoon that it operates under a technical service contract that expires in 2030, according to its 2015 annual report.

Malaysia’s national oil company Petronas holds a 30 percent stake in the field while the Iraqi government holds the remaining 25 percent. Production from Majnoon is currently at around 235,000 barrels per day, according to Iraq’s oil officials.

Despite the withdrawal from Majnoon Shell will keep its operations in gas and petrochemical projects in Iraq, the letter said.


Brazil >>  8/11/2022 - Petrobras informs that it has begun the opportunity disclosure stage (teaser), referring to the sale of its mining rights for research and mining of p...
Angola >>  8/10/2022 - Afentra plc, an upstream oil and gas company listed on AIM and focused on acquiring production and development assets in Africa, is pleased to announc...

Denmark >>  8/10/2022 - Vestas continuously looks for partners that can support our strategic focus on our core business and help scale renewables efficiently in the long-ter...
Norway >>  8/10/2022 - • The transaction consideration of US$68 million includes NOK 309 million (~US$33 million) in deferred tax assets which are recoverable for Lime Petro...

Oman >>  8/8/2022 - Maha Energy AB (publ) (“Maha” or the “Company”), through its wholly owned subsidiary Maha Energy (Oman) Ltd., has entered into an Agreement with Mafra...
United States >>  8/8/2022 - Cenovus Energy Inc. (CVE) has reached an agreement to purchase bp’s 50% interest in the bp-Husky Toledo Refinery in Ohio. Cenovus has owned the other ...

Related Categories: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 

Related Articles: Accounting, Statistics  Acquisitions and Divestitures  Asset Portfolio Management  Economics/Financial Analysis  General  Industrial Development  Insurance  Investment  Mergers and Acquisitions  Risk Management 


Gulf Oil and Gas
Copyright © 2021 Universal Solutions All rights reserved. - Terms of Service - Privacy Policy.