Iraq "Blames Shell" for $4.6bn Lost Income

It continued: “So far, Shell has neither resumed the previous production ... nor achieved the First Commercial Production.”

The ministry also alleged that the company has “not taken any serious measures to handle the associated gas produced from the field.”

“The flaring of this gas has had a negative impact on Iraq both economically (i.e. revenue losses) and on the environment as well as it’s in violation with the Iraqi laws.”

Shell’s other partners in the Majnoon venture are Petronas (30% share) and the Missan Oil Company, representing the Iraqi State (25% share).

In a statement e-mailed to AFP, however, Shell spokesman Diego Perez said: “We can confirm than when we started opening the brownfield facilities for inspections and repair toward the end of last year, our technical assessment indicated the need for major additional work.”

“The safety of our people and assets remain ... our top priority in Iraq, so we have been working in getting the facilities back to an acceptable condition and ensure a safe and reliable operation.”

“Drilling operations to restart new production in Majnoon have successfully concluded and we expect to open the wells in the near future, followed by a short period to test and fill in the system.”

Perez said the company was targeting production of 175,000 bpd “between now and the end of the year.”

(Source: AFP)

(Picture: Majnoon, June 2012. Credit: Shell)


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