Shell to exit Iraq’s Majnoon field

Royal Dutch Shell will invest more in Basrah Gas Company (BGC) in Iraq, the super-major told international media on Wednesday, hours after reports broke that it was preparing to exit the Majnoon oilfield.

“In May 2017, the Ministry of Oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oilfield, which had a significant impact on its commerciality,” a Shell spokesman told Reuters. “By handing over Majnoon operation to the Ministry of Oil, Shell will be in a stronger position to maximse value to the government of Iraq and its people as well as our shareholders by focusing its efforts on the development and growth of [BGC].”

Shell is reportedly looking for a buyer of its 45% stake in Majnoon, the country’s third-largest oilfield. Its partners in the development are Petronas (30%) and state-owned Missan Oil Company (25%).

BGC, which runs the largest flare-reduction programme in the world, is a JV between South Gas Company (51%), Shell (44%) and Mitsubishi (5%).