BASRA: Royal Dutch Shell has restarted production at Iraq's Majnoon oil field, one of four giant fields core to the country's plans to boost output and avoid a slowdown in exports this year.
The Anglo-Dutch major, in charge of operations at the southern Majnoon oil field, said on Friday it aims to boost output to 175,000 barrels per day (bpd) in October.
"We can confirm that we successfully opened the wells and restarted production in Majnoon," a Shell spokesman said. "We are targeting production of 175,000 bpd in the next weeks."
Baghdad sent a letter of complaint to Shell last month for missing start-up dates at the 12-billion-barrel oil field, which was pumping about 45,000 bpd when the company took over in 2010. Shell later suspended operations to carry out maintenance.
An official from Iraq's South Oil Company, which oversees the running of the country's southern oilfields, had a more ambitious target for Majnoon.
"The test restart of the oilfield will continue until the end of September and production of around 190,000 barrels per day is expected to be reached in October," he said.
OPEC's second-biggest producer expects its output to rise by 400,000 bpd by the end of this year, with Majnoon - which straddles the border with Iran - providing a big part of that.
Shell has built a strong position in southern Iraq as operator of Majnoon, junior partner with ExxonMobil at West Qurna-1 and a partner in a natural gas project.
Baghdad's oil revival, which got under way in 2010, has slowed this year due to infrastructure and security problems, keeping output far below projected targets and sometimes even below last year's levels of 3 million bpd.
Iraq signed a series of service contracts with major oil companies such as Shell, BP, Exxon and Total at the end of 2009 to develop its oilfields, neglected for decades due to wars and sanctions.
The development of the neighboring Rumaila, Zubair and West Qurna-1 oil fields has already added 600,000 bpd.
Garraf oil field in the south, developed by Malaysia's Petronas and Japan Petroleum Exploration Co Ltd., started production of 35,000 bpd earlier this month.
Petronas also has a minority interest in Majnoon. Under the terms of the service contract, Shell vowed to raise production from Majnoon to 1.8 million bpd by 2017 for a fee of $1.39 a barrel. It has been negotiating with Baghdad to reduce the target to around 1 million bpd.
Shell restarts Iraq's Majnoon oil field
Shell restarts Iraq's Majnoon oil field
GCC chambers plan Gulf Guarantee project to boost intra-regional trade
DAMMAM: The Federation of GCC Chambers, in cooperation with the Customs Union Authority, intends to launch the Gulf Guarantee Project to provide a unified mechanism for exports and trade transactions and to enhance the efficiency of intra-GCC trade, which reached about $146 billion by the end of 2024, Saleh Al-Sharqi, Secretary-General of the federation, told Al-Eqtisadiah.
Al-Sharqi said, on the sidelines of his meeting with media representatives at the federation’s headquarters in Dammam, that the initiative represents a qualitative leap in supporting intra-GCC trade by facilitating transit movement through a single point, contributing to cost reduction, accelerating the flow of goods, and enhancing the reliability of trade operations among Gulf markets.
He explained that the federation recently launched a package of strategic initiatives, including the Tawasul initiative aimed at strengthening communication among Gulf business owners and supporting the building of trade and investment partnerships, in addition to the Gulf Business Facilitation initiative, which seeks to address challenges facing Gulf investors and traders, simplify procedures, and improve the business environment across member states.
He noted that these initiatives fall within an integrated vision to address obstacles hindering investment and intra-regional trade flows by developing regulatory frameworks, activating communication channels between the public and private sectors, and supporting Gulf economic integration in line with the objectives of the Gulf Common Market.
In a related context, the Secretary-General affirmed the direction of GCC countries to leverage artificial intelligence technologies to support trade and investment flows, stressing the importance of establishing a unified Gulf committee for artificial intelligence to coordinate efforts and exchange expertise among member states. He said the federation will support this direction in the coming phase, drawing on leading international experiences, particularly the Chinese experience in this field.
Regarding the recently announced electric railway project between Riyadh and Doha, Al-Sharqi revealed that technical and advisory committees are working to complete the necessary studies for the project, confirming that it will positively impact passenger and freight movement between the two countries, enhance Gulf logistical integration, and support regional supply chains.
On investment opportunities available to Gulf nationals in the Syrian market, he said the federation is coordinating with private sector representatives in Syria to overcome obstacles that may face the flow of Gulf investments, in addition to working to provide adequate guarantees to protect these investments and ensure a stable and attractive investment environment.
In response to a question from Al-Eqtisadiah about the impact of tariffs imposed by the US on imports of iron, steel, and aluminum, he said that economic and technical committees in GCC countries are continuously monitoring the repercussions of these tariffs on the Gulf private sector, assessing their effects, and taking the necessary measures to protect it from any potential negative impacts.
Al-Sharqi also pointed to the launch of two specialized committees in the transport and logistics sectors and in real estate activities, given their pivotal role and active contribution to Gulf gross domestic product, stressing that developing these two sectors is a fundamental pillar for enhancing economic diversification and increasing the competitiveness of GCC economies.
He added that during the past year the federation held more than 40 meetings and official engagements with Gulf and international entities, participated in nine regional and international events to strengthen the presence of the Gulf private sector on the global stage, and signed 12 agreements and memoranda of understanding with Gulf, regional, and international entities to open new horizons for economic and investment cooperation.
During the same year, the federation launched four digital platforms to support the Gulf private sector, bringing the total number of its digital platforms to eight serving the business community across member states.
The Secretary-General affirmed that the federation will continue working with relevant economic entities to unify procedures and regulations, reduce non-tariff barriers, and accelerate mutual recognition of products and standard specifications, in a way that enhances the competitiveness of the Gulf economy and supports the growth of intra-GCC trade.
