Halliburton Signs $150m Contract for Iraq’s Majnoon Oilfield

Halliburton signed the one-year contract with Shell on Tuesday to develop the Majnoon oilfield, according to a media source from Shell.

Hanadi al-Salman told Aswat al-Iraq news agency that, “according to the new deal, Halliburton will set up operation centers to dig 15 new wells,” he added.

When the contract win was originally announced in August, its estimated value was $150m.

A consortium including Royal Dutch Shell PLC and Malaysia’s Petronas have the contract to redevelop Iraq’s Majnoon oil field, one of the largest oil fields in the world.

Although the companies’ fee for raising output is considered small, it represents an important foothold in a country that potentially has massive untapped oil resources, said ING analyst Jason Kenney.

The Majnoon field, located in southern Iraq, holds some 12.8 billion barrels of oil reserves. The Iraqi state will hold a 25% interest in the licence, Shell will hold a 45% share and Petronas 30%.

(Source: Aswat al-Iraq)

6 Responses to Halliburton Signs $150m Contract for Iraq’s Majnoon Oilfield

  1. john gallear December 1, 2010 at 7:31 am #

    i have invested in 10 million iraq dinar does anyone know for deffinate whan the iraq dinar will hit and be accepted has a world currency

    many thanks john

  2. privett December 1, 2010 at 10:54 am #

    how are all these multi million dollar contracts being paid when the dinar is virtually worthless

  3. privett December 1, 2010 at 10:58 am #

    they will knock the last three 0,s off all large notes if they allowed that big rv to happen they would be broke thats been the biggest gimmek of all times yes a possibility but slim to none

  4. Ian December 20, 2010 at 10:35 am #

    These type of deals are bartered and paid in oil not hard currency. Most Gulf Contracts are paid like this. the oil is processed and sold for cash in the US then payments are made.

  5. Denise January 18, 2011 at 9:49 am #

    I’m considering the purse of Iragi dinar and am hestitate. This is one risk I will likely take and sit and wait to see.

  6. Iraqi October 1, 2011 at 10:00 am #

    Hello guys ,
    What’s going on iraq ,
    could some body teee me about the shell and halliburton comoanies story in contracts\
    Thanks