LONDON (Reuters) - Oil major Royal Dutch/Shell (L:RDSa) said on Wednesday it would focus its efforts on the development and growth of the Basra Gas Company in Iraq after handing over operations of the Majnoon oil venture back to the Iraqi government.
On Tuesday, Reuters reported that Shell Iraq has started preparations to finalise the exit of Shell from Majnoon, one of the largest fields in the country.
"In May 2017, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oil field, which had a significant impact on its commerciality," a Shell spokesman said.
Shell then decided that it was in the best interest of all parties to hand over operations of the Majnoon venture to the Iraqi government.
"Shell remains firmly committed to Iraq. By handing over Majnoon operation to the ministry of Oil, Shell will be in a stronger position to maximize value to the government of Iraq and its people as well as our shareholders by focusing its efforts on the development and growth of Basra Gas Company," the spokesman said.
Basra Gas Company is a joint venture between Shell, South Gas Company and Mitsubishi and the Petrochemical Project NEBRAS.