Shell to Hand Over Iraq's Majnoon Oilfield by End June 2018

Source: Reuters 11/8/2017, Location: Middle East

Oil major Royal Dutch Shell has agreed to exit the Majnoon oilfield and hand over its operation to the state-run Basra Oil Co. by the end of June 2018, two oil officials close to the deal said.

A letter signed by Iraqi oil minister Jabar Luaibi, dated Aug. 23 and seen by Reuters, gave approval for the Anglo-Dutch company to quit Majnoon, a major oilfield near Basra which started production in 2014.

Two Iraqi oil officials said the deal was reached during a meeting between Shell and officials from state-run Basra Oil at the Majnoon oilfield.

We agreed that eight months is quite enough time for Shell to finish preparations to exit Majnoon. Basra Oil Company will take over operations, said one official close to the meeting.

Majnoon currently produces around 235,000 barrels of oil per day, oil officials said.

Under the exit agreement, Iraqi workers hired and trained by Shell will stay working in Majnoon, even though development operations will be handled by Iraq or another foreign contractor, said another Iraqi oil official. A Shell spokesman was not immediately available for comment.

Shell said it would focus its efforts on the development and growth of the Basra Gas Company in Iraq after handing over operations of Majnoon to the Iraqi government.

Basra Gas Company is a joint venture between Shell, South Gas Company and Mitsubishi and the Petrochemical Project NEBRAS.


Norway >>  8/15/2022 - Vr Energi has acquired 30% ownership in production licenses (PL) 820S and PL 820 SB (north of the Balder field in the North Sea) from Lime Petroleum,...
Spain >>  8/12/2022 - F2i, Italy's leading infrastructure fund, and Crdit Agricole Assurances have signed an agreement to acquire from the Villar Mir Group wind farms in o...

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...

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.