Shell earmarks $1.2b to develop Iraq's major Majnoon oilfield

BASRA, Iraq (REUTERS) - Royal Dutch Shell will spend more than US$1 billion (S$1.24 billion) this year developing one of Iraq major oilfields, where it will resume operations on May 1, officials said on Saturday.

"The figure for the budget will exceed US$1 billion," said Mr Mehdi Badi, the head of the joint management committee for the field.

The Majnoon field was shut down in June for maintenance and to bring new production facilities online. When it comes back on stream, initial output will be 100,000 barrels per day (bpd), which will quickly rise to 200,000, Oil Minister Abdul Kareem Luaibi said on Saturday.

The production re-start could help boost Iraq's exports towards the 2.9 million bpd average projected in the budget, making up for a cut by the country's autonomous north. Iraq exported an average 2.538 million bpd in February, Mr Luaibi said, up from 2.359 million the previous month, but still below their peak.