The Iraqi Oil Ministry has awarded two-year contracts to UK engineering company Petrofac and China-based Anton Oilfield Services to operate the giant Majnoon oilfield.

The companies will operate the southern oilfield on behalf of Iraqi state-owned Basra Oil Company, which is taking over operations there from Royal Dutch Shell.

Shell had announced its intention to exit its stake in the field, which started production in 2014, by the end of June.

Basra Oil said in February it plans to raise output at Majnoon from 240,000 barrels a day (b/d) in three years to 450,000 b/d now by adding a new production platform.

Iraq is producing less than 5 million b/d as part of its commitment to the global output cut deal between the Organization of the Petroleum Exporting Countries (Opec) and a group of 11 other oil producers.

The Iraqi government announced plans this month to increase the country's oil output capacity to 6.5 million b/d by 2022, which is lower than its initial target of 7 million b/d.