Shell, Petronas and Iraq’s Ministry of Oil have signed a 20-year contract to provide technical assistance in the development of the Majnoon oil field.
Located in southern Iraq, Majnoon is one of the world’s largest oil fields.
‘Iraq’s oil and gas reserves are among the largest in the world and we look forward to applying our experience and technology to support ongoing efforts to rebuild the country’s energy infrastructure,’ said Peter Voser, Shell’s chief executive.
Shell, as lead operator, will hold a 45 per cent share, with partner Petronas holding 30 per cent. The Iraqi state holds 25 per cent of the participating interests in all licences.
The consortium expects to produce 1.8 million barrels of oil per day, up from a current level of approximately 45,000 barrels of oil per day.
Today’s announcement follows the initial contract award on 11 December 2009 and the approval of the Iraqi Council of Ministers on 5 January 2010.