January 5, 2010
BAGHDAD – The Iraqi government ratified on Tuesday four deals with Western oil companies, including one with a major consortium led by European giant Royal Dutch Shell PLC to develop the prized Majnoon field, a government spokesman said.
[efoods]The deals are part of seven oil concessions awarded last month in Iraq’s second postwar bidding round for 15 oil fields. Tuesday’s approval paves the way for the Oil Ministry to finalize the deals and allow the companies to start their work.
Shell and its partner, Malaysia’s state-run Petronas, plan to raise production from the 12.5 billion barrel field from the current 45,900 barrels per day to 1.8 million barrels per day over 10 years. They will be paid $1.39 per barrel produced.
Iraq’s government spokesman, Ali al-Dabbagh, said that the Cabinet also approved three smaller deals — two with the Angolan national oil company Sonangol and another with a group including Petronas and Japan’s Japex consortium.