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Shell and Petronas gear up in Iraq Majnoon Full Field Field Development

Foster Wheeler and Kentz at FEED work on Majnoon

2B1st_Project_Smart_Explorer_Sales_Pursuit_ToolThe international oil company (IOC) Royal Dutch-Shell (Shell) and its partners, the Malaysia national oil company (NOC) Petronas and the local South Oil Company (SOC or South Oil)) are making major decision to gear up from the previous start-up phase to the full field development (FFD) of the giant Majnoon oil and gas field in the south of Iraq.

Located 70 kilometers north of Basra and covering a surface of 60 kilometers long by 15 kilometers wide, Majnoon is listed among the largest oil and gas fields in the world with estimated in-place reserves of 38 billion barrels.

Shell-Petronas-SOC_Foster-Wheeler-Kentz_Majnoon_Full-field-Development_MapAlthough Majnoon had been discovered in 1975 by the Brazilian company Braspetro, today Petrobras International.

Since that time the Majnoon oil and gas field has never got a chance to be developed according to its potential because of it geographical position along the Iran boarder.

Number of companies attempted to invest in Majnoon and the succession of wars prevented sustainable exploration and production program.

Transformed in battle field with explosives and land mines all over, Majnoon oil and gas reserves remained nearly untouched until it was awarded to the joint venture of Shell, Petronas and South Oil in 2009 as the result of the second licence round.

In signing a technical services contract (TSC) with Baghdad Government, Shell and its partners accepted only $1.39 per barrel as remuneration fees on the production with a targeted plateau production of 1 million barrels per day (b/d) by 2017.

This technical services contract is signed for 20 years during which Shell and its partners have planned to spend $50 billion capital expenditure with the working interests distributed as following:

Shell_Majnoon_field_clean-up_Start-up – Shell 45% is the operator

 – Petronas 30%

 – South Oil 25%

Until 2012, Shell and its partners invested more than $2 billion capital expenditure to secure and clean up Majnoon and convert it into a safe exploration and production area.

Majnoon Oil Field Commercial Production project to go

In 2013, Shell, Petronas and SOC managed to ramp-up the production that reached 200,000 b/d of crude oil on last December with the support of:

 – Petrofac in charge of the engineering, procurement and construction (EPC) contract

 – Wood and CCC consortium to provide start-up services

Through this start-up phase, Shell, Petronas and SOC acquired a deep knowledge of the reservoir and have decided to gear up their program in launching the Majnoon Full Field Development project.

In that perspective the Swiss-based Foster Wheeler and the Irish engineering company Kentz formed the joint venture Foster Wheeler Kentz Energy Services DMMC to win the Majnoon Oil Field Commercial Production Project engineering contract.

According to the terms of the contract, Foster Wheeler and Kentz will provide engineering services for the:

Shell-Petronas-SOC_Majnoon_Foster-Wheeler-Kentz_Full_Field_Development – Conceptual study

 – Front end engineering and design (FEED)

 – Detailed design

 – Engineering, procurement and construction (EPC)

This engineering services contract covers the:

 – Revamping and upgrade of the existing facilities

 – Construction of the new faclities

Shell, Petronas and South Oil sanctioned the Majnoon FEED and EPC services contract to Foster Wheeler and Kentz for a two years period with the option for a third year extension.

 In doing so, Shell, Petronas and South Oil confirm their investment program in the Majnoon Oil Field Commercial Production project in the perspective of 2017 with the support of the Foster Wheeler and Kentz joint venture.

For more information and data about oil and gas and petrochemical projects go to Project Smart Explorer


1 thought on “Shell and Petronas gear up in Iraq Majnoon Full Field Field Development”

  1. who get the EPC contract for Majnoon Full Field Development project.
    is it CPECC?if yes, please Whom CPECC project manager dedicated for this project and his contact number
    technical manager

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