Related Articles
Forward article link
Share PDF with colleagues

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 ba

Also in this section
Latest licensing rounds
20 November 2017
The industry's most comprehensive list of current and recent rounds for onshore and offshore licenses
Iran to lead Middle East gas expansion
15 November 2017
With a focus on developing the South Pars field, Iran is set for a major expansion of natural gas production
Mexico—zero to hero
9 November 2017
A string of successful auctions has set the stage for an exploration boom in Mexican waters