Integrated energy giant,
Royal Dutch Shell plc
) announced the opening of the Majnoon oil fields in Iraq with
the objective to boost production.
BP PLC (BP): Free Stock Analysis Report
ROYAL DTCH SH-A (RDS.A): Free Stock Analysis
TOTAL FINA SA (TOT): Free Stock Analysis
EXXON MOBIL CRP (XOM): Free Stock Analysis
To read this article on Zacks.com click here.
When Shell took over in 2010, the field was producing 45,000
barrels of oil per day (BOE/d). The company had later suspended
work on grounds of maintenance.
Production from the first well started last month. The
Shell-operated field is expected to reach production level of
175,000 BOE/d in the coming weeks. It is a target which must be
met in order to recover the costs incurred while entering into
the deal. The oil field is expected to produce about 200,000
BOE/d by this year end.
Shell holds a 45% interest in the Majnoon fields. Petronas, a
Malaysian oil company, holds a 30% interest whereas the remaining
is held by Iraq's Missan oil company.
In Jan 2010, the Iraqi Ministry of Oil had awarded the partners a
20-year contract to develop the Majnoon prospect, which is among
the largest oil fields in the world. The project is divided into
two phases. Phase I includes reaching First Commercial Production
(FCP) and Phase II involves development of the full field (FFD).
The giant Majnoon field is located in Basra province, in Southern
Iraq and is a significant contributor to the country's economy.
It is one of the four oil fields that Iraq plans to develop with
the objective of increasing total production almost twofold to 6
Other major oil companies with which Iraq has signed deals
Exxon Mobil Corporation
Royal Dutch Shell currently retains a Zacks Rank #3 (Hold),
implying that it is expected to perform in line with the broader
U.S. equity market over the next 1 to 3 months. Among the other
stocks mentioned, BP and Exxon have a Zacks Rank #3 (Hold)
whereas Total has a Zacks Rank #2 (Buy).