Shell will operate development and production service contract under the terms of the second licensing round for Iraqi oil and gas contracts. As laid out by the Ministry of Oil, those terms call for 25% of the participating interests in all licences to be held by the Iraqi state. Shell will hold a 45% share, with Petronas holding 30%.
The consortium bid a plateau production of 1.8 million barrels of oil per day, up from a current level of approximately 45,000 barrels of oil per day. Shell and Petronas look forward to developing the Majnoon resource base with its partners.
The Majnoon licence is said to be one of eight fields that were put up for sale in an auction by the Iraqi government.
Separately, Russia’s Lukoil and partner Statoil of Norway have also received rights to develop second phase of Iraq’s West Qurna deposit.
