Shell Iraq has produced first oil from the Majnoon oilfield in Iraq in the presence of senior representatives from the Iraqi government. The first well was successfully opened on the 20th of September 2013.
“This is a historic event and I am very proud of the global expertise Shell has brought to the Majnoon project, and of the role we’ve played in developing people and creating employment,” stated Harry Brekelmans, Executive VP, Upstream International Operated, Shell International.
The development of the oilfield involved the drilling of new wells, the construction of a green-field central processing facility, the largest of its kind to be built in Iraq in the last 30 years, as well as the revamping of brown-field installations. The company also carried out an extensive demining program, safely clearing 14,000 items of ordnance during field redevelopment.
The introduction of existing and new technologies is an integral part of Shell’s current activities in Iraq. The primary reason for developing and deploying these technologies is to increase ultimate recovery from the reservoirs, maximize production, and reduce the safety and environmental exposure. “Majnoon is setting the standards for green-field development in Iraq and we are very proud of what we achieved, jointly with our partners, the South Oil Company, Petronas and the Missan Oil Company. I am particularly happy for the jobs we provided to local communities and the contracts and training granted to local companies, transferring valuable skills and expertise in the process,” said Hans Nijkamp, VP of Shell in Iraq.
Located in Basrah, Majnoon is one of the largest oilfields in the world and is estimated to have around 38 billion barrels of oil in place, according to Iraqi Ministry of Oil figures. Shell (45%), Malaysia’s state-owned Petronas (30%) and Iraqi state partner, Missan Oil Company (25%) were awarded the technical service contract for development of the field in 2010. With the production of the first new oil, the partners now will now ramp-up production over the coming months to the agreed commercial production rate of 175,000 barrels of oil per day.
Shell is one of the largest investors in the Iraqi oil and gas industry. The company has a long heritage of partnership with the government and the people of Iraq in support of the country’s strategy to rebuild the energy infrastructure and to create a new income stream for Iraq’s economy.
Shell safely executed an extensive demining program, with 21,975,061 m2 of surface clearance and 14,000 items of ordnance cleared and destroyed. We delivered the first jetty on the Shatt Al Arab with customs entry point in Iraq, and the first barge sailing up the Shatt Al Arab in 31 years. We have provided approximately 2,850 jobs to people from the local communities at the peak of construction, and currently have estimated 300 SOC seconded Iraqi staff.
