Shell Lifts First Crude Oil from Majnoon Oilfield

Shell announced today that the Majnoon oilfield it operates in partnership with South Oil Company (SOC), Petronas and Missan Oil in Southern Iraq has successfully exported its first shipment of crude oil to Shell trading, a significant milestone for the oilfield.

The achievement comes as production at the Majnoon oilfield has reached a current average of 210,000 barrels of oil per day, well in excess of the 175,000 barrels per day (bpd) First Commercial Production target which initiates the commencement of cost recovery and was achieved after extensive rehabilitation works at the oilfield.

“This is a historic event for Iraq’s energy industry. The lifting of Shell’s first oil shipment from Majnoon has great significance to us and our partners in the Government as it is a testimony to our shared progress and signals the start of Majoon’s long-term journey toward generating further revenue for Iraq’s economy, and as an investment in Iraq’s future” said Hans Nijkamp, Vice President and Chairman of Shell in Iraq. Nijkamp added that progress on the Majnoon field would not have been possible without the support of the South Oil Company and our partners Petronas and Missan Oil Company.

Shell and its partners successfully recommenced production from Majnoon in September 2013 following the completion of major overhaul works, including 28 square kilometers of mine clearance, extensive refurbishment of brownfield facilities to meet safety standards, and the construction of a new greenfield central processing facility – the largest to be built in Iraq in the last decade – to allow for increased production capacity. To date, 18 new wells have been drilled, while the project has created more than 2,850 jobs for Iraqi’s from the neighboring communities.

Development at the Majnoon oilfield involved clearing more than 28 square kilometers of land, equivalent to 9,000 soccer pitches, of leftover explosive munitions of war, while 48,000 metric tons of steel – equivalent in weight to six Eiffel Towers – was transported to the field. Material was shipped to the field via the historic Shatt al-Arab waterway, which had previously been closed to commercial transport for 31 years. In addition to employing around 300 Iraqi staff seconded from the South Oil Company, the Majnoon project created more than 2,850 jobs for people from neighboring communities.

Shell has a long history in Iraq which began via a partnership with the Iraq Petroleum Company (IPC) during the 1920’s. Today, Shell is one of the largest investors in Iraq with a 45% stake in the Majnoon field with partners Petronas 30% and Iraqi state partner Missan Oil 25%. In addition, Shell holds a 44% stake in the Basrah Gas Company with partner South Gas Company 51% as the operator and Mitsubishi (MBI.F) 5%. Shell is also a partner in the West Qurna-1 field redevelopment holding a minority 15% stake, with Exxon as the operator and the Iraqi State Partner. Shell Global Solutions signed three license agreements with the state-owned North Refineries Company of Iraq in Kirkuk to provide a kerosene hydrotreater and a vacuum gasoil hydrocracker unit. The licensed technologies will provide Kirkuk with an integrated solution that will help optimize operations at the new refinery. Shell lubricants are available in Iraqi via official distributors. Beyond our business interests, Shell is actively involved in training programs to increase local technical capacity, including women’s education and protection of Iraq’s environmental biodiversity in partnership with the United Nations.

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