Iraq's Majnoon seen at 175,000 bpd by Aug
* Field is one of major projects in Iraq's south
Iraq's Majnoon oilfield, operated with Royal Dutch Shell, is expected to reach 175,000 barrels per day (bpd) production by August this year from current output of 54,000 bpd, an official at the state-run South Oil Company said on Tuesday.
Mehdi Badi, head of the joint management committee for the field, told Reuters that investment so far in the site was probably less than $500 million, but could reach beyond $25 billion by the time the 20-year Majnoon project is completed.
The 12.6 billion barrels Majnoon is one of the major fields alongside Rumaila, West Qurna Phase One and Zubair that the OPEC-member is developing with foreign companies in the south as it recovers from years of war and sanctions.
Shell and partner Petronas of Malaysia need to reach 175,000 bpd at the field to attain the first commercial production level, which would trigger cost recovery and the payment of service fees under the Majnoon agreement.
"This definetely depends on how many wells are drilled and completed and the availability of interior pipelines and export pipelines," Mehdi said, speaking at the inaugeration of a new jetty at Majnoon.
Three rigs are currently working at Majnoon, which hit as high as 90,000 bpd output in December 2010. Work on a de-gassing station has temporarily reduced production, Badi said.
Production at the field was around 45,000 bpd when Shell took it over in 2010. Shell and Malaysia's Petronas won rights to develop the 12.6 billion barrel field at a 2009 auction.
Mehdi said attaining 175,00 would also depend on contractors securing visas for Iraq. Snags have recently delayed immigration paperwork for some foreign workers coming into Iraq.
Source: Reuters
