Shell Opens Majnoon Oil Field

[BradyBear]

Greetings Adam and Friends,

 

Here is some Positive news for us:

Shell has officially inaugurated Iraq's huge Majnoon oil field on Sunday, and said it aims to reach 175,000 barrels a day in the coming weeks.

 

Production from the field's first well started on 20th September, and Hussein al Shahristani, the Iraqi deputy prime minister for energy, said in Dubai that output is expected to rise to almost 200,000 barrels a day before the end of the year.

 

Shell owns 45 percent of the venture, with Petronas owning 30 percent, and the Iraqi state holding 25 percent.

 

They have pledged to eventually raise production to 1.8 million barrels a day.

 

Have a Great day,

BradyBear

 

[bigwave]

Wow - about $15 M a day out of one field at $85/barrel. 

[SnowGlobe7]

that a lot of oil

[millionaire in training]

Good News.   Love it when it's all good.........

[new york kevin]

Hopefully this news, along with the million other positive they have taken will place pressure on the decision makers to press that button and RV this thing.

 

Brady Dear I appreciate this post.

[outlawclg]

Great!  Now make the currency match the oil.

[Goodlife]

This is the result of some of those big contracts won by tender some time ago. The financial recovery of Iraq hinges on the development of those contracts.   The problem is the lack of infrastructure to move the oil.  Iraq needs to shake a leg with these issues to keep up with the contracts issued otherwise it will frustrate the entire process.

I dont remember many people commenting on the significance of the big contracts won a few years ago but they were very very important as that was the conception of the financial recovery. The  oil production expectations of those contracts was more than what is currently extracted.  These contracts are the engines that will strengthen the Dinar.  So its just a matter of time, providing Iraq provides the means to carry the oil to the oil tankers and provides water to the oil Fields. 

[Goodlife]

More info concerning the above.  Segment copied from Market Watch, a wall street journal.

 

Majnoon, located near the city of Basra in southern Iraq, is one of four major fields that the country is developing with foreign companies, and it is vital to its ambitious plan to up its output to at least 6 million barrels a day from the current production level of 3.2 million.

Shell, which started production from the field's first well Sept. 20, successfully opened the wells and restarted production, which will be ramped up to "175,000 barrels a day in the next weeks," a Shell spokesperson told The Wall Street Journal.

The output target is a critical milestone in Shell's plans to develop the field as it is the volume required for the Anglo-Dutch oil major to start recovering costs under its deal with the Iraqi oil ministry.

Hussein al Shahristani, the Iraqi deputy prime minister for energy, said in Dubai last month that output from the gigantic field is expected to rise to almost 200,000 barrels a day before the end of the year.

Iraq signed a series of service contracts with major oil companies such as Shell, Exxon Mobil Corp. XOM +1.06% , Total TOT +0.19% , BP PLC BP -0.02% , and Eni SpA E -2.00% at the end of 2009 to develop its oil fields.

Shell and Malaysia's Petronas Gas Bhd (6033.KU) were awarded the deal in December 2009 to develop the field located in southern Iraq near the Iranian border. Shell owns 45% of the venture and Petronas owns 30%, with the Iraq state-run company holding 25%.

They have pledged to eventually raise production from Majnoon to 1.8 million barrels a day.

[sandfly]

THANKS