The Majnoon oilfield returns to the state-run oil company of Iraq. According to “two Iraqi oil officials”, close to the transaction deal, the “Royal Dutch Shell” has transferred the southern Iraq based oilfield’s operations to Basra Oil Company.
Both the oil companies, Shell and Basra, met last week to complete the handover procedures of the Majnoon oilfield, whereby marking the Shell’s exit. Following the meet, one “oil official” of Iraq stated: “The handing-over process was smooth and without any issues”.
Shells, however, has decided to turn its focus on “developing” Iraqi “gas joint venture, while the company also sold its “West Qurna 1” stake to Itochu Corp of Japan. On the 5th of April, the oil ministry of Iraq entered into a “two-year contract with Anton Oilfield Services and Petrofac” for operating the “giant Majnoon oilfield on behalf of Basra Oil Company”.
Majnoon oilfield produced around “235,000 barrels” of crude daily, while the authorities want to increase the same to “450,000bpd” within a period of three years. Another official of Iraq, who is in the Majnoon operation team, said: “Shell’s exit will not have any effect on production operations and we can increase output without any hurdles”.
Iraq follows Saudi Arabia in the second spot in the list of largest producers in OPEC, whereby the country produces around “4.4 million bpd” under its produce capacity. This also reflects the global move of cutting down crude supply by OPEC in an attempt to balance its price and stop producing excess in comparison to the demand. According to Reuters: “Iraq, OPEC’s second-largest producer after Saudi Arabia, is producing about 4.4 million bpd, below its capacity, in line with global supply cuts led by OPEC aimed at supporting prices and reducing oversupply”