Iraq’s slow-paced oil infrastructure programme could affect 2012 production target for Majnoon oilfield
Iraq’s oil pipeline construction programme is so delayed, it could affect production at the Majnoon oilfield for at least three months.
The oilfield is operated by the UK-Dutch Shell Group and media reports in Iraq state the oil major could request a waiver if the delays affect the field’s 2012 production target of 175,000 barrels a day.
The Majnoon field has proven reserves of more than 12 billion barrels and Shell has a 45 per cent share. Malaysia’s Petronas holds 30 per cent with the Iraqi state holding the remaining 25 per cent.
The field has a production target of 1.8 billion barrels a day, which is being introduced incrementally. Shell and its partners have already spent $1bn on the field’s development with another $1bn planned.