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Shell completes sale of its stake in Iraq’s West Gurna 1 oil field to Itochu

05th April 2018

Shell EP Middle East Holdings has completed the sale of the entire share capital of Shell Iraq (SIBV), which held its 19.6% stake in the West Qurna 1 oil field, for $406 million, to a subsidiary of ITOCHU Corporation.

Iraq’s West Gurna 1 oil field
Iraq’s West Gurna 1 oil field

The purchaser has also assumed debt of $144 million as part of the transaction.

The West Qurna 1 venture will continue to be operated by ExxonMobil. Shell’s other businesses in the country are not affected by this divestment.

Shell’s Upstream Director, Andy Brown, said: “Iraq is an important country for the Shell Group, and exiting West Qurna 1 allows us to focus our resources on other assets in our Iraq portfolio. We are grateful for the support of the Iraqi government during the divestment process.

“Shell remains committed to working with its partners to redevelop Iraq’s energy infrastructure by capturing associated gas, through the Basrah Gas Company (BGC) Joint Venture, for domestic and regional consumption. This deal maintains the momentum behind Shell’s $30bn divestment programme and is in line with the drive to simplify our upstream portfolio and reshape the company into a world class investment.”

Shell’s other businesses in the country will not be affected by this divestment.