Shell has handed over its operations at the Manjoon oil field in southern Iraq to the state-run Basra Oil Company (BOC), two Iraqi officials stated on June 27, according to Reuters.
Officials from Shell and BOC met on June 27 to finalize Shell’s exit and the handover of operations.
“The handing over process was smooth and without any issues,” one Iraqi oil official stated after the meeting.
Shell previously announced its plans to exit the field in November 2017 due to plans to focus develop the Basra Gas Company, a joint venture between Shell, South Gas Company, Mitsubishi, and the Petrochemical Project NEBRAS.
The Iraqi oil ministry agreed a two-year contract on April 5 with Anton Oilfield Services to operate the Manjoon oilfield on behalf of BOC.
Manjoon currently produces 235,000 barrels per day (b/d) of crude oil, which the Iraqi government plans to increase to 450,000 b/d in three years.
“Shell’s exit will not have any effect on production operations and we can increase output without any hurdles,” said another Iraqi oil official who is part of Majnoon’s operation team.