Halliburton’s $150m Majnoon Deal

Further to our report last week Halliburton has confirmed that it has been awarded a letter of intent by Shell Iraq Petroleum Development B.V. for the development of the Majnoon field in Southern Iraq.

Dow Jones suggests the contract for the 15 wells could be worth $150m.

The giant Majnoon field is one of the world’s largest oilfields. The letter of intent provides that Halliburton will serve as project manager for the development work, in affiliation with Nabors Drilling and Iraq Drilling Company (IDC). The contract is still subject to final approval by the appropriate Iraqi authorities.

Shell is lead operator and holds a 45 percent share, partner Petroliam Nasional Berhad (Petronas) holds 30 percent and the Iraqi state holds 25 percent of the participating interests in all licenses. Shell has announced that the consortium intends to increase production from the current ~45,000 barrels of oil per day to a targeted production plateau of 1.8 million barrels of oil per day.

“Halliburton has made a sizeable investment in Iraq and we look forward to providing services to Shell and the consortium in order to increase production at this historic oil field,” said Dave Lesar, Halliburton’s Chairman, President and CEO. “We have in place the technology, equipment and personnel to ensure that we deliver the solutions that will help our customers in this region to meet their production goals.”

Halliburton has been active in the Middle East since 1946. Currently, Halliburton has more than 4,000 employees in the Middle East, and construction on phase I of Halliburton’s 400-man base in Burjisia, Iraq is complete.

(Sources: Halliburton, Dow Jones)

3 Responses to Halliburton’s $150m Majnoon Deal

  1. Kevin Schmidt August 28, 2010 at 12:57 am #

    Thus the reason why dick Cheney moved into his new house, less than one mile (burrowing distance) from CIA Headquarters in Langley, Virginia. Want to see it on Google Maps?

    Location, location, location! What a profitable move for the dick.

    By the way, what ever happened to that ONE BILLION DOLLARS of Iraqi oil revenue that mysteriously appeared in Halliburton’s bank account?

    By the way, what ever happened to that story?

  2. Anita Mabardy August 29, 2010 at 6:37 am #

    Well, that makes it all worth it. 100,000 dead Iraqis, 4,000 dead Americans, etc. Yep. Mission Accomplished.


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