Shell sells Iraqi oilfield stake to Japan's Itochu for $406 million

ERBIL, Kurdistan Region (Kurdistan 24) – The major Royal Dutch oil company, Shell, on Friday agreed to sell its entire stake in the West Qurna 1 oil field of Iraq to Japanese Itochu Corp for $406 million.

The agreement came soon after the Dutch company agreed to exit the Majnoon oilfield—one of the largest fields in Iraq—and hand over its operation to Basra Oil, a state-run company, by the end of June.

Shell EP Middle East Holdings B.V. will sell the entire share capital of Shell Iraq B.V. (SIBV), which holds a 19.6 percent stake in the oilfield to a unit of Itochu, the Dutch company told Reuters.

Itochu will also assume a debt of $144 million as part of the deal with Shell Company.

The oil major has received the necessary regulatory consent, and was expected to complete the sale soon, with an effective date of Dec. 31, 2015, Shell said.

A senior Iraqi oil official had told Reuters at the beginning of 2018 that Baghdad had approved the sale.

The West Qurna 1 oilfield, operated by Exxon Mobil Corp, produces around 405,000 barrels of oil per day.

Editing by Karzan Sulaivany