PETRONAS, SHELL WIN CONTRACT TO TAP GIANT OILFIELD IN IRAQ

KUALA LUMPUR, Dec 12 (Bernama) -- Malaysia's state-run Petronas and Europe's
largest oil company, Royal Dutch Shell on Friday won the rights to develop one
of the world's largest remaining untapped oilfields as Iraq staged its second
auction of oil contracts since the 2003 U.S. invasion.

According to a Reuters report in Baghdad Friday, the companies proposed a
per barrel fee of just US$1.39 and pledged to increase output from the
supergiant Majnoon field to 1.8 million barrels per day (bpd) from the 45,900
bpd production level at present.

"We announce that the consortium of Shell and Petronas have won (the
contract) to develop Majnoon, and the fee is less than the Oil Ministry
specified," Iraqi Oil Minister Hussain al-Shahristani was quoted as saying in
the report.

Majnoon has reserves of 12.6 billion barrels, making it one of the world's
largest untapped oilfields.

Shell has a 60 per cent stake in the consortium, while Petronas holds the
balance 40 per cent.

Meanwhile, China National Petroleum Company (CNPC), Total and Petronas won
the contract in the second round of bidding for the Halfaya field with a
proposed remuneration fee of US$1.40 per barrel and a plateau production target
of 535,000 bpd from the 3,100 bpd at present. CNPC owns 50 percent of the
venture, while Total and Petronas hold 25-per cent stakes each.

Halfaya, situated in southern Iraq, has estimated reserves of 4.1 billion
barrels of oil.
-- BERNAMA