Royal Dutch Shell has exited the Majnoon oil field in southern Iraq and handed over its operations to the state-run Basra Oil Co., two Iraqi oil officials close to the deal said on June 27.
Officials from Shell and Basra Oil Co. met on June 27 to mark the complete exit of Shell and the handover of operations.
“The handing over process was smooth and without any issues,” one Iraqi oil official said after the meeting.
Shell has said it plans to focus on developing its gas joint venture in Iraq. Shell also sold its stake in West Qurna 1 to Japan’s Itochu Corp.
On April 5, the Iraqi oil ministry signed a two-year contract with Anton Oilfield Services and Petrofac to operate the giant Majnoon oil field on behalf of state-owned Basra Oil Co.
Crude oil output from Majnoon is now about 235,000 barrels per day (bbl/d) and Iraq plans to boost output to 450,000 bbl/d in three years, oil officials said.
“Shell’s exit will not have any effect on production operations and we can increase output without any hurdles,” said another Iraqi oil official who is part of Majnoon’s operation team.
Iraq, OPEC’s second-largest producer after Saudi Arabia, is producing about 4.4 million bbl/d, below its capacity, in line with global supply cuts led by OPEC aimed at supporting prices and reducing oversupply.
Recommended Reading
Apollo to Buy, Take Private U.S. Silica in $1.85B Deal
2024-04-26 - Apollo will purchase U.S. Silica Holdings at a time when service companies are responding to rampant E&P consolidation by conducting their own M&A.
Deep Well Services, CNX Launch JV AutoSep Technologies
2024-04-25 - AutoSep Technologies, a joint venture between Deep Well Services and CNX Resources, will provide automated conventional flowback operations to the oil and gas industry.
EQT Sees Clear Path to $5B in Potential Divestments
2024-04-24 - EQT Corp. executives said that an April deal with Equinor has been a catalyst for talks with potential buyers as the company looks to shed debt for its Equitrans Midstream acquisition.
Matador Hoards Dry Powder for Potential M&A, Adds Delaware Acreage
2024-04-24 - Delaware-focused E&P Matador Resources is growing oil production, expanding midstream capacity, keeping debt low and hunting for M&A opportunities.
TotalEnergies, Vanguard Renewables Form RNG JV in US
2024-04-24 - Total Energies and Vanguard Renewable’s equally owned joint venture initially aims to advance 10 RNG projects into construction during the next 12 months.