New Wells at Shell's Majnoon Field

In July, Shell will start installing 15 production wells and pipelines in the Majnoon oilfield in southern Iraq, Vice president and country chairman Hans Nijkamp told the website of Energy Exchange.

It will also upgrade two degassing stations and build “a new central processing facility to include two new 50,000 bbl/d capacity early production systems”.

Shell has concluded a geographical survey that produced “positive results” about the southern Shatt al-Arab waterway’s ability to handle equipment needed to develop the Majnoon oilfield. “We are now able to use it as a route to transport equipment to Majnoon and minimize road transport .. We are also in the process of constructing a jetty.”

Together with Petronas of Malaysia, Shell won a 20-year service contract in 2009 to raise output from Majnoon to 1.8 million barrels a day. Shell Chief Executive Officer Peter Voser said in October that production at Majnoon had risen to 70,000 barrels a day. The oil field, which straddles the Basra and Maysan provinces, has estimated crude reserves of 12 billion barrels and 9.5 trillion cubic feet of gas.

As we reported over the weekend, Dubai-based Dodsal has won a $106m contract for a pipeline at Majnoon.

(Source: Bloomberg)

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