Iraq’s Majnoun oilfield output reaches international markets as output surges

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By Saadoun al-Jaderi

Azzaman, April 10, 2014

First shipments of oil from Majnoun oilfield have found their way to international markets as the field’s output reaches 210,000 barrels per day, Mustafa Jihad, the officer in charge of information at the field said.

“Exports from the field started when production rose to 210,000 barrels per day, surpassing the targeted threshold of 175,000 barrels daily,” said Jihad.

Majnoun is one of the world’s biggest oilfields and is seen as vital for Iraq’s ambition to increase its output to 6 million barrels. Iraq is developing four of its giant oilfields to reach this target in 2016.

The field is run by Royal Dutch Shell and has recoverable reserves of 12 billion barrels. The firm has  a service contact with the government in Baghdad, which it signed in 2009.

Other majors like Exxon, Total, Shell, BP, Lukoil and Petronas have struck such deals with the government to develop Iraqi oilfields mainly in Bagdad.

Malaysia’s Petronas has a minority share in Majnoun, which is expected to produce up to 1.8 million barrels per day by 2017.

Royal Dutch Shell charges Iraq about $1.39 per each barrel it produces from the field.