Shell, through its position as operator of the Majnoon oilfield; its participation in the Basrah Gas Company Joint Venture; signing of the Nebras Heads of Agreement; and its trading and lubricants businesses, has become one of the largest investors in the Iraqi Energy industry.
Nebras will support Iraq’s vision to develop a world-class petrochemical industry that will create economic and employment benefits for the country. Iraq has the opportunity to play a significant role in the regional and global petrochemicals industry as it benefits from rich hydrocarbon resources and one of the largest resource bases of ethane feedstock in the Middle East, providing an opportunity to capitalise upon an under-utilised resource and transform it into an additional income stream for the country.
The Basrah Gas Company Joint Venture is a cornerstone of Iraq’s integrated energy strategy providing 70% of the province’s electricity and 60% of Iraq’s total LPG demand. As the midstream asset in Shell’s Iraq portfolio it captures, treats and monetises associated natural gas that is flared from the three giant oil fields of southern Iraq separating the gas into various products including condensate, dry gas for electricity generation, and liquids to make LPG, used for domestic cooking. The company has substantially reduced gas flaring from the upstream fields, positively improving the environment, air quality and health. The direct impact of sustained rehabilitation initiatives has enabled the joint venture to reach a new daily production record of more than 780 mmscfd and produce a record 4,400 tonnes of LPG per day this year.
Shell and our partners have developed Majnoon, one of the world’s largest oil fields, into a top quartile producing asset that currently produces 220,000 barrels of oil per day, which is of significant financial benefit to the Government of Iraq. The raw gas from the field is also being harnessed through the First Commercial Production (FCP) Sweet Gas project to reduce flaring with around 90 million scf/d being sent to the North Rumaila powerplant. Following a number of plant modifications Majnoon has reduced vented hydrocarbon emissions by 95%.
Shell places safety, respect for people and the environment at the core of everything we do, by:
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- Working together with our partners to ensure the safety of all people in our operations.
- Minimising the environmental and social impact of our operational footprint.
- Maximising the employment of local Iraqi staff.
- Establishing and maintaining long-term partnerships with local companies.
- Conducting business as a responsible corporate member of the Iraqi society