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Saturday, December 12, 2009

Najib Proud Of Petronas' Success In Securing Iraq Contracts

PEKAN, Dec 12 | Bernama

-- Prime Minister Datuk Seri Najib Tun Razak has expressed satisfaction over Petronas' success in securing two contracts in Iraq, including to develop the giant Majnoon oilfield.

He said the achievement showed that Petronas had gained international trust in oil exploration.

"I had yet to be informed officially by Petronas, I only learned about it from newspaper reports.

"It is an encouraging development as the areas are proven to have huge oil deposit. Generally, when we get exploration areas we do not know whether we will succeed or not until we carry out drilling works.

"We do not know whether we will find oil or gas. But now, it seemed there are no risks at all if the report is anything to go by," he told reporters after opening the Pekan Resource Centre here Saturday.

Najib, who is also Finance Minister, said the achievement would not only generate revenue for the company but also for the government.

"Petronas is always looking for new opportunities and only when they succeed the announcement is made. So efforts to find new oilfields is a continuing process," he said.

It was reported yesterday that Shell and Petronas won the rights to develop the Majnoon oilfields as Iraq staged its second auction of oil contracts since the 2003 United Stares invasion.

Shell has a 60 per cent stake in the consortium while Petronas holds the remaining 40 per cent. The Majnoon oilfields in southern Iraq are estimated to have 12.6 billion barrels of reserves, making it one of the largest untapped oilfields left on earth.

Petronas in another consortium comprising China National Petroleum Company of China and French oil major Total won a contract at the second auction to develop the Halfaya oilfields in southern Iraq with an estimated 4.1 billion barrels of reserves.