Royal Dutch Shell PLC (RDSB.LN) said Wednesday its Majnoon oil field in Iraq is still likely to meet a key production target by the end of this year, despite a series of setbacks that have hampered its development.
Royal Dutch Shell PLC (RDSB.LN) said Wednesday its Majnoon oil field in
Iraq
is
still likely to meet a key production target by the end of this year, despite a
series of setbacks that have hampered its development.
Shell said the preliminary mechanical work needed before 175,000 barrels of oil
a day can be produced at the super-giant field should be completed by the end
of 2012, even though efforts had been stymied by "unexpected mine
clearance work, occasional delays in customs and [the] impact of recent weather
conditions."
The level, required for the Anglo-Dutch company to start recovering costs under
its deal with the Iraqi oil ministry, is a critical milestone in Shell's plans
to develop the field. Because Majnoon's existing pipelines aren't big enough to
deal with the anticipated increase in output, Shell has had to concentrate its
efforts on the necessary upgrades needed before output at the targeted amount
can begin.
Majnoon, believed to hold as much as 12.6 billion barrels of oil, is one of
four major fields that
Iraq
is
developing with foreign companies.
Shell and
Malaysia
's
Petronas Gas Bhd (6033.KU) were awarded the deal in December 2009 to develop
the field located in southern
Iraq
near
the Iranian borders. Shell owns 45% of the venture and Petronas owns 30%, with
the
Iraq
state-run company holding 25%.
They have pledged to eventually raise production from Majnoon to 1.8 million
barrels a day.
Shell said plans for a wider development of Majnoon, including the
rehabilitation of the field after years of conflict, could only go ahead after
it reached its 175,000 barrel a day target, which it describes as "first
commercial production."
"Once we reach full commercial production, we will look at an incremental,
modular approach to full field development," the spokesman said.
Διαβάστε ακόμα
Τρι, 24 Σεπτεμβρίου 2024 - 19:58
Τρι, 24 Σεπτεμβρίου 2024 - 19:54
Τετ, 18 Σεπτεμβρίου 2024 - 18:32
Τετ, 18 Σεπτεμβρίου 2024 - 18:27
Τρι, 17 Σεπτεμβρίου 2024 - 20:01