Royal Dutch Shell has decided to sell their 20-percent stake in Iraq’s giant West Qurna 1 oilfield. The sale ws to Japan’s Itochu Corporation. Shell Also decided to sell their stake in Majnoon oilfield, one of Iraq’s largest oil fields. Operations for Majnoon were taken over by the state-owned, Basra Oil Company (BOC) and plans will take effect by the end of June 2018.
Head of BOC, Ihsan Abdul Jabbar confirmed reports, “Shell sold its stake in West Qurna 1 to Itochu and the oil ministry approved it. We met with Itochu and discussed the required financial investments and operations at the field.”
U.S. Oil company, Exxon Mobil is the current operator for West Qurna 1 with current production sitting at approximately 405,000 barrels per day.
U.S. EPC firm, KBR, has also been contracted to to manage Majnoon oil field operations, however, energy facilities at Majnoon will be constructed by a foreign operator.
Shell, however, is committed to supporting the Basra Gas Company which operates Rumaila, West Qurna 1 and Zubair firlds in which it has a 44% stake in. Head of Basra Oil Company, Abdul Jabbar also noted, “We are targeting to cut the cost of the projects’ development by 30 percent this year,” this is despite Shell’s approximations that the Majnoon development would cost approximately US$1 billion. Source: Reuters and Iraq Ministry of Oil