The Majnoon oil field is located in Al-Basrah Governorate in southeast of Iraq, about 60 km northwest of Basrah city. The Majnoon field is aobut 60 km long and 15 km wide, with closure in the order of 400 meters for the middle and early Cretaceous reservoirs. Discovered in 1976, a total of 24 wells were drilled in the field, with one appraisal well penetrating 14 oil-bearing zones. The first important oil zone is the late Cretaceous Hartha carbonate formation. The field was partially developed, with work held up in 1980, when the area was flooded. However, production from the Majnoon field began in 2002.
The contract of the field includes a 20+-year period with a renumeration fee (RFB) of $1.39 per-barrel and a Plateau Production Target (PPT) of 1.8 million barrels of oil per day. The field currently produces 45,000 bopd with estimated oil reserves of 12.6 billion barrels. Majnoon is one of the largest oil fields in the world.
The RFB is payable once the Contract Area achieves a production of 175,000 barrels of equivalent oil per day, when commercial production begins in 2012, and the Plateau Production Target must be maintained for 10 years.
Partners and shareholders:
South Oil Company (SOC) 25%
SUPPLIERS, CONTRACTORS & SERVICE PROVIDERS
Shell - Shell will operate the development for the Majnoon field
AMEC (Now Amec Foster Wheeler) - On 15 Dec 2013, Amec and Foster Wheeler were awarded a front-end engineering and design (Feed) contract for the Majnoon oilfield. The Contract covers new facilities for the full field development. The deal was agreed in August and signed in late-November, but neither Foster Wheeler nor Amec would confirm the contract award.
Foster Wheeler AG (now Amec Foster Wheeler) - On 15 Dec 2013, Amec and Foster Wheeler were awarded a front-end engineering and design (Feed) contract for the Majnoon oilfield. The Contract covers new facilities for the full field development. The deal was agreed in August and signed in late-November, but neither Foster Wheeler nor Amec would confirm the contract award.
Haliburton Co. (150M)- On 17, August 2010, Shell and Petronas awarded a contract worth USD150 million to Haliburton to drill 15 oil wells in the Majnoon oilfield within two years. Shell signed the contract of Haliburton on 25 November 2010.
Petrofac Limited (240M) - On 17, August 2010, the EPC contract of building two new crude processing plants worth $240 million, was awarded to Petrofac. On 31 March 2011, Shell, Petrobnas and the Iraqi state signed a $200 million deal with Petrofac Ltd. to design, contract and supply early production units for the Majnoon oil field development. Under the deal Petrofac will provide engineering, procurrement, fabrication and construction management services to build a new early-productio nsystem comprising two trains each with a total capacity of 50,000 barrels a day of oil. The early-production system is expected to be commissioned by the end of 2012.
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