Wednesday, 7 July 2010

Shell to award contract for new oil wells in Majnoon

The head of Iraq's, state owned, South Oil Co, Dhiaa Jaafar, has announced that Shell and its partner, Petronas, are in the process of awarding a deal to drill new oil wells in one of Iraq's largest oil fields, Majnoon. The field located in Basra's governance is estimated to hold up to 12.6 billion barrels of proven oil reserves.

The two groups, who partnered up to develop the field, are believed to be in talks about awarding other tenders, including engineering and construction contracts. According to several industry sources, the two groups have invited a number of well established oil companies including Halliburton, Weatherford International and Petrofac to submit bids.

The former two have an established presence in Southern Iraq, while Petrofac said that it is currently in the process of making an entry in to the country's oil industry. Shell and Petronas, who were awarded the Majoon contract, back in December, own 45 per cent and 30 per cent of the stake respectively, with the other 25 per cent belonging to Iraq's state-run Missan Oil Co.

Source: Wall Street Journal

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