(Repeats Nov. 28 story, no change to text)
* Profits from Iraq oil production limited, sources say
* Shell seeks to retain its Iraq gas production
* Sale part of global $30bln disposal programme
By Ron Bousso and Dmitry Zhdannikov
LONDON, Nov 28 (Reuters) - Royal Dutch Shell isconsidering selling out of its oil fields in Iraq as part of itsglobal $30 billion asset disposal programme, industry sourcessaid on Monday.
Shell is seeking to slim down its vast oil and gas portfoliofollowing the $54 billion acquisition of BG Group in February,which transformed it into the world's top liquefied natural gastrader.
With oil prices having slumped since 2014 the company wantsto focus on business areas with the highest returns such as LNGand deepwater oil production in Brazil and the Gulf of Mexico.
A spokesman for Shell in London declined to comment.
The Anglo-Dutch company, which has been present in Iraq forover a century, has found only limited financial benefits inrecent years from its involvement in Iraq's oil production,where it is paid in crude oil but has limited say on productionstrategy, the sources said.
However, Shell continues to see value in developing its gasbusiness in Iraq and is not interested in selling thoseinterests, the sources said.
Iraq accounted for around 4.4 percent of Shell's total oiland gas production in 2015, according to its 2015 annual report.
The move to sell the oil interests highlights thedifficulties Iraq faces in its efforts to increase crude outputas foreign oil companies such as Shell have found the terms ofthe production service contracts unappealing.
The Anglo-Dutch is the operator of the giant Majnoon fieldnear Basrah in southern Iraq which started production in 2014.
Iraq signed contracts with a large number of oil majorsaround six years ago as it emerged from years of sanctions andinternal conflict.
Baghdad initially wanted to rival Saudi Arabia by reachingproduction of over 10 million barrels per day (bpd) but redtape, corruption and poor infrastructure was blamed for delayingprojects, which resulted in oil output projections being halved.
National output has nevertheless recently risen sharply toaround 4.7 million bpd as some projects started paying off. Iraqhas been pushing the foreign companies including BP,Lukoil, Exxon Mobil, Shell and China NationalPetroleum Corp to increase their investments to giveit further production gains.
Shell holds a 45 percent interest in the Majnoon oil fieldthat it operates under a technical service contract that expiresin 2030, according to its 2015 annual report. Malaysia'snational oil company Petronas holds a 30 percent stakein the field while the Iraqi government holds the remaining 25percent.
Production from Majnoon averaged 206,000 barrels per day in2015.
Shell also has a 20 percent interest in the West Qurna 1field, which is operated by Exxon. (Editing by Greg Mahlich)
BP (BP.)