Royal Dutch Shell PLC has taken another step in the trimming of its oil and gas interests in Iraq.
Shell EP Middle East Holdings BV sold all share capital in Shell Iraq BV, which holds a 19.6% interest in West Qurna 1 oil field, to a subsidiary of Itochu Corp.
Itochu paid $406 million and assumed $144 million of debt.
Last year, Shell Iraq Petroleum Development BV won endorsement by the Iraqi Ministry of Oil of its proposal to withdraw from Majnoon oil field, which it operates with a 45% interest (OGJ Online, Oct. 18, 2017). Majnoon produces more than 200,000 b/d of oil.
ExxonMobil Corp. operates West Qurna 1 field, which produces about 400,000 b/d of oil, with a 32.7% interest. Other partners are PetroChina, 32.7%; Pertamina, 10%; and state-owned Oil Exploration Co., 5%.
Shell said its other business in Iraq will not be affected.
It is a 44% partner in Basrah Gas Co., a 25-year joint venture with state-owned South Gas Co. (51%) and Mitsubishi (5%) that captures, treats, and sells associated gas from West Qurna 1, Zubair, and Rumaila oil fields.