IRAQ: The Majnoon oilfield, operated by Royal Dutch Shell, should be ready to produce 175,000 barrels per day (bpd) by the end of 2012

Record ID: 344168

  • Title: IRAQ: The Majnoon oilfield, operated by Royal Dutch Shell, should be ready to produce 175,000 barrels per day (bpd) by the end of 2012
  • Date: 8th February 2012
  • Summary: MAJNOON, IRAQ (FEBRUARY 7, 2012) (REUTERS): ROADBLOCK AND SECURITY PERSONNEL AT ENTRANCE TO NEW JETTY CONSTRUCTED BY SHELL BERTHS AND FACILITIES OF JETTY SECURITY GUARD AT BERTH OF JETTY BERTH AND POLICEMEN AND FORK-LIFT TRUCKS AT FIELD BIG TENT AT FIELD OIL AND BASRA CITY COUNCIL OFFICIALS ATTENDING INAUGURATION OF JETTY BASRA DEPUTY GOVERNOR MAEEN AL-ASSADI, DEPUTY DIRECTOR OF SOUTH OIL COMPANY FAISAL KHALAF AND OLE GUARD, SHELL'S MANAGER AT MAJNOON AND OFFICIALS OF BASRA CITY AT RIBBON/ CUTTING RIBBON/ CLAPPING MACHINERY AND OIL DERRICK AT FIELD (SOUNDBITE) (English) SHELL'S MANAGER AT MAJNOON , OLE MYKLESTAD, SAYING: "I would be happy if I have most of the facilities ready and constructed by the end of this year. We are working very hard to do that, but there is still always the chance of the unexpected, for instance you talked about mine clearance, clearly mine clearance took a lot more effort than we envisiged, it was far more contaminated with mines and explosives than envisiged, and to reach the end of year target of largely finishing construction we will require huge co-operation across all of the ministries, with the whole company, indeed making sure the river is operating, taking all of these together" MINE SWEEPERS AT FIELD/ OIL FIRE AT BACKGROUND (SOUNDBITE) (English) SHELL'S MANAGER AT MAJNOON , OLE MYKLESTAD, SAYING: "We have so far spent as a company around 30 million dollars on mine clearance. Now you can go back and compare but it is not far off the total Euopean Union spend in terms of mine clearance. I'm spending another 20 million this year, we've cleared a singnificant number of both small personel mines from minefields up to 500kg bombs." PIPELINES AND MACHINERY AT FIELD (SOUNDBITE) (English) HEAD OF THE JOINT MANAGEMENT COMMITTEE FOR THE FIELD, MEHDI BADI, SAYING: "Currently SCO, the state company for oil projects, it is the technical arm of the ministry of oil to build the tanks and the pipelines, engaged to build the export pipeline from Majnoon to Zubayr and then to Faw. So today we have a good approach but finally it depends on the coming activity, it is not so easy to say 25, 24 precisely." PIPELINES AND MACHINERY WORKING AT FIELD CRANES AND FORK-LIFT TRUCKS AT CONSTRUCTION SITE OF NEW UNIT AT FIELD PIPELINES AND MACHINERY AT WORK MORE OF FIELD FACILITIES OIL DERRICK WIDE OF MAJNOON FIELD AND OIL FLAME AT BACKGROUND
  • Embargoed: 23rd February 2012 12:00
  • Keywords:
  • Location: Iraq, Iraq
  • Country: Iraq
  • Topics: Business,Industry,Energy
  • Reuters ID: LVA4OREJHIU9SYKEHECBYO58F39Q
  • Story Text: Iraq's Majnoon oilfield, operated with Royal Dutch Shell, should be ready to produce 175,000 barrels per day (bpd) by the end of 2012, an output level that triggers cost recovery and service fee payments, a senior company official said on Tuesday (February 7).
    The 12.6 billion barrels Majnoon is one of the major fields alongside Rumaila, West Qurna Phase One and Zubair that the OPEC-member is developing with foreign companies in the south as it recovers from years of war and sanctions.
    "I would be happy if I have most of the facilities ready and constructed by the end of this year. We are working very hard to do that," Ole Myklestad, Shell's manager at Majnoon, told Reuters at the site.
    Iraqi officials say the field could reach that output from current production of around 54,000 bpd by August, depending on pipeline infrastructure, completed wells and also visa delays for foreign contractors.
    Myklestad said operations to remove thousands of old landmines and explosives left during the Iran-Iraq war had required more effort than originally envisaged.
    Shell has spent $30 million on mine clearance so far and planned another $20 million this year, he said.
    He said Shell had spent around $1 billion since taking over the field in 2010, and planned to invest another $1 billion in 2012. Total spending over the life of the 20-year project would be around $50 billion.
    Shell and minority partner Petronas of Malaysia, are targetting production of 1.8 million bpd by 2017.
    Offering a more optimistic outlook, Mehdi Badi, head of the joint management committee for the field, told Reuters the project could reach 175,000 bpd by the end of August.
    "This definitely depends on how many wells are drilled and completed and the availability of interior pipelines and export pipelines," Mehdi said, speaking at the inauguration of a new jetty at Majnoon.
    Three rigs are working at Majnoon, which hit as high as 90,000 bpd output in December 2010. Work on a de-gassing station has temporarily reduced production, Badi said.
    Production at the field was around 45,000 bpd when Shell took it over in 2010. Shell and Malaysia's Petronas won rights to develop the 12.6 billion barrel field at a 2009 auction.
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