The Royal Dutch Shell Oil Company agreed on Friday to sell its entire stake in West Qurna 1 oil field in Basra province to Japan’s Itochu Corp. for $ 406 million.
The deal comes at a time when the British-Dutch company agreed to exit the Majnoon oil project, one of the largest fields in Iraq, OPEC member, and hand over its operations to the state-run Basra Oil Company by the end of June.
The company said Shell BP Middle East Holdings would sell its entire stake in Iraq’s Shell Iraq, which owns 19.6 percent of the oilfield, to a subsidiary of Itochu.
Under the agreement, Itochu will also have a $ 144 million debt.
Shell said it has obtained the necessary regulatory approvals and is expected to complete the sale soon, with the effective date of the agreement on 31 December 2015.
A senior Iraqi oil official was told in January that Iraq had agreed to sell.
West Qurna 1, run by Exxon Mobil, produces about 405,000 barrels per day at present.