Don't miss

Replay


LATEST SHOWS

PERSPECTIVE

Inside the mind of Bashar al-Assad: Author explores brutal dictatorship

Read more

THE OBSERVERS

Dancing nuns, skateboarding in Nepal, and more

Read more

EYE ON AFRICA

Cameroon elections: Constitutional court rejects last petition for re-run

Read more

MEDIAWATCH

Music stars, French art and a dead cat's renaissance

Read more

THE WORLD THIS WEEK

The Khashoggi case; Endless Brexit; Canada legalises cannabis

Read more

#TECH 24

Next stop space: Japanese company constructing nanotube 'space lift'

Read more

#THE 51%

The Gender Divide: Record number of women running in U.S. midterms

Read more

REPORTERS

Reporters: Brexit, a sea of uncertainty for fishermen

Read more

YOU ARE HERE

Fishing in France's Grau du Roi harbour, a family tradition

Read more

Business

Shell signs initial deal to develop Majnoon oilfield

Text by NEWS WIRES

Latest update : 2009-12-20

Two of several firms to win the rights to develop Iraqi oilfields, Shell and Petronas, became the first firms to sign an initial deal on Sunday. The consortium will work on the Majnoon oilfield, which has huge reserves of 12.6 billion barrels.

 

REUTERS - A group led by Royal Dutch Shell , Europe's largest oil company, signed an initial deal on Sunday to develop the supergiant Majnoon oilfield.

Shell, along with Malaysia's state-run Petronas, won the rights in an energy auction earlier this month for the field, a major oil prize near Iraq's southern oil hub of Basra.

Mounir Bouaziz, a senior Shell executive, and Abdul-Mahdy al-Ameedi, deputy director of the Oil Ministry's licensing office, signed the initial agreement in downtown Baghdad. It must now be sent to the cabinet for approval.

Majnoon has reserves of 12.6 billion barrels, making it one of the world's largest untapped oilfields.

Iraq is hoping a host of deals in the works will turn the country into a major global energy player and increase output capacity to 12 million barrels a day (bpd) in six or seven years, hard on the heels of global leader Saudi Arabia.

Oil officials have been in a triumphant mood since the Dec. 11-12 auction which awarded seven contracts to foreign firms.

For Majnoon, the Shell group proposed a per-barrel remuneration fee of $1.39 and pledged to increase output to 1.8 million bpd from a current production level of 45,900 bpd.

Shell has a 60 percent stake in the consortium, while Petronas holds 40 percent.

Date created : 2009-12-20

COMMENT(S)