Royal Dutch Shell, which makes leading products like Shell Omala S2 G 320, is thinking about selling its Iraqi oil field as part of its $30bn global asset disposal program, according to industry sources.
The company is looking to slim down its massive oil and gas portfolio after its $54bn acquirement of BG Group this February, which turned the company into the world’s largest trader of liquefied natural gas.
As oil prices have been in a slump since 2014, Shell wants to focus its attention on areas of business that have maximum returns, including LNG deepwater oil production in the Gulf of Mexico and the South American country of Brazil.
The company, which has maintained a presence in Iraq for more than 100 years, has gained minimal financial benefits in the area in terms of oil production in recent years, and only has a limited input on production strategy, according to sources.
However, the company still sees potential in developing its gas business in the country and is not looking to sell its gas interests in Iraq at this time.
In total, the Middle Eastern nation made up approximately 4.4% of Shell’s oil and gas production last year, according to the company’s annual report.
The move to sell its oil interests brings into view the difficulties faced by Iraq as it tries to increase crude oil output, while at the same time foreign oil companies are finding the nation’s production service contract terms unappealing.