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)