Iraq’s Unattractive Contracts Claim Fresh Victim As Shell Eyes The Exit

Shell is looking to offload its stakes in Iraq’s key Majnoon and West Qurna-1 oilfields. This comes after Occidental’s decision to quit the country, whilst Total says the low margins on offer have kept it away.

Iraq’s Oil Ministry received a blow this week with reports that Shell is looking to offload its substantial Iraqi oil assets as part of its post-BG acquisition streamlining. The Anglo-Dutch major is looking to sell its 45% operating stake in the 220,000 b/d Majnoon field and its approximately 15% stake in ExxonMobil-operated 450,000 b/d West Qurna-1.

With Shell not renewing its stake in Abu Dhabi’s onshore Adco concession following its 2014 expiry, this would leave it with just Oman, where it has a 34% ‘leading’ stake in dominant 600,000 b/d producer PDO, a source of currently producing Mena oil. (CONTINUED - 1461 WORDS)

DATA INSIDE THIS ARTICLE

table Iraq’S Key Technical Services Contracts And Their Plateau Production Targets (Mn B/D)