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Shell, CNPC groups win Iraqi oil deals

By OGJ editors
HOUSTON, Dec. 11
-- The Iraqi oil ministry awarded service contracts for development of giant Majnoon and Halfaya oil fields in the first of 2 days of bidding by 45 companies.

Royal Dutch Shell PLC and Petronas won the contract for Majnoon field in southern Iraq.

The combine—Shell 60% and Petronas 40%—bid plateau production of 1.8 million b/d of oil and a fee of $1.39/bbl of increased production. The field now produces about 45,000 b/d.

The Iraqi government retains 25% participating interests in all licenses.

In 2003, former Iraqi Oil Minister Issam Al-Chalabi estimated original oil in place for Majnoon at 38 billion bbl and original reserves at 12 billion bbl (OGJ, Mar. 24, 2003, p. 42). The field is north of Basra near the Iranian border.

The contract for Halfaya field, between Majnoon and the city of Amara, went to a consortium led by China National Petroleum Corp. bidding plateau production of 535,000 b/d and a fee of $1.40/bbl. Current production is 3,000 b/d.

Combine interests are CNPC 50% and Total SA and Petronas, 25% each.

For Halfaya, Al-Chalabi estimated original oil in place of 16 billion bbl and original reserves of 4.6 billion bbl.

Six fields drew no bids during the first day, possibly due to insecurity or proximity to residential areas.

Fifteen fields were open for bidding.


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