Shell, Petronas sign final contract for Majnoon field

Royal Dutch Shell, Europe’s largest oil company, and Malaysia’s Petroliam Nasional Bhd (Petronas) signed a final contract yesterday to develop Iraq’s Majnoon oilfield, one of the world’s biggest.

 

 

Shell and Petronas won the rights in an auction held in Baghdad in December for the 12.6 billion barrel field in southern Iraq.

 

The 20-year development contract is one of several deals that Iraq expects to finalise as it tries to catapult itself to third place from 11th in the league of oil producing nations.

 

The deal was signed at Iraq’s Oil Ministry in the presence of Iraqi Oil Minister Hussain al-Shahristani and a vice president of Shell Gas and Power, Mounir Bouaziz.

 

The Majnoon deal is a key to Iraq’s plans to revive its oil sector after years of war and economic sanctions that allowed infrastructure to fall into disrepair.

 

Iraq hopes to boost output capacity to 12 million bpd from around 2.5 million bpd now.

 

Majnoon, near the southern oil hub of Basra, is one of the world’s biggest largely untapped fields.

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