Baghdad Clinches New Zubair Deal With Eni But Shell Majnoun Talks Hit Wall

31 May 2013 Issue: 56 / 22

Iraq’s Oil Ministry has agreed a new 850,000 b/d plateau target for Eni’s Zubair development, but similar talks for Shell’s Majnoun seem to have broken down.

In addition to lowering Eni’s plateau production from 1.2mn b/d to 850,000 b/d Baghdad has agreed to extend the contractual plateau duration from seven to 15-20 years. This follows a January agreement lowering targeted output at the Lukoil-led West Qurna-2 project from 1.8mn b/d to 1.2mn b/d.

Talks continue on new lower plateau targets with both ExxonMobil on its 1.8mn b/d West Qurna-1 and BP for its 2.85mn b/d Rumaila field development, Oil Minister ‘Abd al-Karim Laibi says. However, MEES learns, negotiations with Shell on a new plateau target for the 1.8mn b/d Majnoun field have broken down. “They proposed adjustments which were unacceptable to us,” Mr Laibi tells MEES. “We will have a meeting in the coming days to listen to new ideas,” he added. Discussions had been centering on the 1-1.2mn b/d range. (CONTINUED - 1087 WORDS)