Recent reports indicate that Shell has agreed to sign a US$210 million contract with oil and gas operator Halliburton to work on 30 wells in Majnoon oil field over three years. The output for the fields will increase from 220,000 barrels of oil per day to approximately 4000,000 bpd in the next three years. Source: Reuters
Everything about Majnoon is impressive, it is the first project in Iraq for 30 years which adds substantial new oil processing facilities setting a benchmark in country in terms of quality, standards and HSE performance.
Developing Majnoon has involved the drilling of new wells, the construction of a green field central processing facility the largest of its kind to be built in Iraq in the last decade as well as the revamping of brown field installations.
Shell and our partners have successfully transformed Majnoon into a world class producing asset both safely and responsibly with the field producing more than 200kbpd.
In line with your commitment to safety an extensive de-mining programme has cleared more than 57 kilometres of land, of 16,000 leftover explosive remnants of war (ERW) all with a perfect safety record.
During our oil production from Majnoon associated gas is also being produced which currently is flared due to a lack of infrastructure to treat and process it. This represents a huge financial loss for Iraq and is a wasted resource.
In response to this issue Shell is implementing a technical solution with our partners Ministry of Oil and South Oil Company to capture as much first stage associated sweet gas as possible, produced from field, to add new power to the grid whilst positively impacting the environment by reducing flaring in the process.
Majnoon has approximately13 different reservoirs with the potential to produce oil and gas.
However, the properties of these reservoirs are poorly defined at this stage and a full 3D seismic survey will support the future development of the oil field. A survey is planned for 2015. The seismic survey area is approximately 900 km2 and extends beyond the concession area boundaries in the north, south and west to cover the full extent of the reservoir.
This will involve working in the northern end of Majnoon which overlaps with the Hawizeh Marshes – an area home to the Marsh Arabs and a designated wetland of international importance by the Ramsar Convention.
The Hawizeh Marshes are a complex of marshes that straddle the Iraq and Iran border. The marshes are fed by the Tigris River in Iraq and Karkheh River in Iran. They are critical to the survival of the Central and Hammar marshes, because they are a refuge for species that may reproduce into the other marshlands.
In January 2010, the Iraqi Ministry of Oil and Shell signed a contract to develop the Majnoon oil field. Shell was awarded a 45% shareholding as lead operator and Petronas 30% with the remaining 25% going to the Iraqi State Partner (Missan Oil Company). Source: Shell