Iraq's crazy goings on
Shell's dissatisfaction with its Iraq operations exposes flaws in the country's contract model for IOCs
Iraq has the second-largest proven oil reserves in the Middle East and the fastest growing production. When a major operator, Shell, is considering exiting one of the world's top 10 super-giant fields in that country, something is drastically wrong. The field in question is Majnoon, the Arabic word for crazy. Situated in oil-rich Basra province, southern Iraq, and operated by Shell with a 45% stake, partnered by Petronas (30%) and the Iraqi government (25%), the field has long been one of the most prized in the Middle East and North Africa (MENA) region. Shell won the field in Iraq's second bid round and signed a contract in 2010 to develop the 25bn-barrel reserves for a fee of $1.39 per bar
Also in this section
21 February 2025
While large-scale planned LNG schemes in sub-Saharan Africa have faced fresh problems, FLNG projects are stepping into that space
20 February 2025
Greater social mobility means increased global demand for refined fuels and petrochemical products, with Asia leading the way in the expansion of refining capacity
19 February 2025
The EU would do well to ease its gas storage requirements to avoid heavy purchase costs this summer, with the targets having created market distortion while giving sellers a significant advantage over buyers
18 February 2025
Deliveries to China decline by around 1m b/d from move to curb crude exports to Shandong port, putting Iran under further economic pressure
