BAGHDAD, Jan. 18 (UPI) -- The Iraqi government signed a 20-year contract with Royal Dutch Shell and its partners at Petronas for the giant Majnoon oil field in Basra province.
The Shell-Petronas consortium aims to increase production at Majnoon to 1.8 billion barrels of oil per day, up from current production totals of around 45,000 bpd.
Petronas and Royal Dutch Shell signed agreements Dec. 11 for Majnoon, which holds at least 12 billion barrels of oil.
"Iraq's oil and gas reserves are among the largest in the world and we look forward to applying our experience and technology to support ongoing efforts to rebuild the country's energy infrastructure," said Peter Voser, the chief executive of Shell.
Representatives from 45 companies competed for contracts for 15 Iraqi oil fields during Iraq's second post-war auction in December. Auctions in June were lauded as a milestone for Iraq, but security and the contract terms kept many investors away.
It is estimated Iraq has about 115 billion barrels of proven oil reserves, and analysts believe the country holds much more in the unexplored deserts of Anbar province. With December contracts in hand, Iraq is set to boost its oil production to more than 11 million barrels per day.
Shell holds a 45 percent stake in Majnoon with Petronas holding 30 percent. The Iraqi government maintains the remaining 25 percent.
