ALSO READShell braces for 'lower forever' oil as profits soar Shell's profit surges as oil sector rebounds Iraq's August oil exports dip, still some way off OPEC compliance Iraq says achieved OPEC oil cut share, ready to meet new demand Iraq has right to achieve oil output in line with reserves - minister
LONDON (Reuters) - Oil major Royal Dutch/Shell said on Wednesday it would focus its efforts on the development and growth of the Basra Gas Company in Iraq after handing over operations of the Majnoon oil venture back to the Iraqi government.
"In May 2017, the ministry of oil in Iraq applied the performance penalty and remuneration factor on the Shell operated venture, the Majnoon oil field, which had a significant impact on its commerciality," a Shell spokesman said.
"Shell remains firmly committed to Iraq. By handing over Majnoon operation to the ministry of Oil, Shell will be in a stronger position to maximize value to the government of Iraq and its people as well as our shareholders by focusing its efforts on the development and growth of Basra Gas Company," the spokesman said.
Basra Gas Company is a joint venture between Shell, South Gas Company and Mitsubishi and the Petrochemical Project NEBRAS.
(Reporting by Ron Bousso, writing by Dmitry Zhdannikov, editing by Louise Heavens)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)