Shell in Talks to Cut Majnoon Output Target

Royal Dutch Shell is in talks to try to cut the production target at the Majnoon oilfield to 1 million bpd from 1.8 bpd. Shell executives proposed the extension of the oil fields plateau, which begins in 2017, to 20 years from seven years.

The Iraqi side is understood to be resisting pressure to increase the remuneration fee of $1.39 per barrel.

These are the first such talks between Iraqi officials and a foreign oil company, and they may prompt discussions with other companies and lead to a reduction of output goals. The two sides are expected to meet again in Beirut in mid-May.

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(Source: Reuters)

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