Shell hands over Iraq's Majnoon oilfield -oil officials (updated)

Anton Oilfield Services

27/06/2018 11:08

(Adds quote, detail, background)
    By Aref Mohammed
    BASRA, Iraq, June 27 (Reuters) - Royal Dutch Shell  RDSa.L 
has exited the Majnoon oilfield in southern Iraq and handed over
its operations to the state-run Basra Oil Co., two Iraqi oil
officials close to the deal said on Wednesday.
    Officials from Shell and Basra Oil Co. met on Wednesday to
mark the complete exit of Shell and the handover of operations.
    "The handing over process was smooth and without any
issues," said one Iraqi oil official after the meeting.
    Shell has said it plans to focus on developing its gas joint
venture in Iraq. Shell also sold its stake in West Qurna 1 to
Japan's Itochu Corp (8001.T).
    On April 5, the Iraqi oil ministry signed a two-year
contract with Anton Oilfield Services  3337.HK  and Petrofac
 PFC.L  to operate the giant Majnoon oilfield on behalf of
state-owned Basra Oil Company.  urn:newsml:reuters.com:*:nL5N1RI2YQ
    Crude oil output from Majnoon is now about 235,000 barrels
per day (bpd) and Iraq plans to boost output to 450,000 bpd in
three years, oil officials said.
    "Shell's exit will not have any effect on production
operations and we can increase output without any hurdles," said
another Iraqi oil official who is part of Majnoon's operation
team. 
    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.

 (Reporting by Aref Mohammed; writing by Ahmed Rasheed; editing
by Louise Heavens)
 ((ahmed.rasheed@thomsonreuters.com; +964-7901-947-131; Reuters
Messaging: ahmed.rasheed.thomsonreuters.com@thomsonreuters.net))