Shell Iraq lets contract for Majnoon production facilities

Shell Iraq Petroleum Development BV let a $240 million contract to Petrofac Services Ltd. for engineering, procurement, fabrication, and construction management services for the development of a new early production system that includes two trains, each with a 50,000 bo/d capacity, along with upgrading of existing brownfield facilities.

By OGJ editors
HOUSTON, Mar. 31
-- Shell Iraq Petroleum Development BV let a $240 million contract to Petrofac Services Ltd. for engineering, procurement, fabrication, and construction management services for the development of a new early production system that includes two trains, each with a 50,000 bo/d capacity, along with upgrading of existing brownfield facilities.

Petrofac said work on the project began in mid-2010 and it expects to complete the project during fourth-quarter 2012.

In 2010, Iraq's Ministry of Oil signed a 20-year contract with Royal Dutch Shell PLC and Malaysia's Petronas to provide technical assistance in the development of the Majnoon oil field (OGJ, Jan. 25, 2010, Newsletter).

The consortium targets a production plateau of 1.8 million b/d of oil, up from 45,000 b/d prior to the technical assistance contract. Majnoon, which lies in southern Iraq, is one of the world's largest oil fields.

Operator Shell holds a 45% share, with partner Petronas holding 30%. The Iraqi state holds 25%.

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