Eni changes scope for Iraq oil facilities

13 February 2012

Now six trains of early production facilities at Zubair field

Italy’s Eni, the developer of the Zubair oil field in the south of Iraq has increased the scope for one of three major tenders for crude oil production facilities.

The Italian firm had planned to build two trains of early production facilities (EPF) at the field, but the scope of work has now been tripled to six trains which have been rebranded initial production facilities (IPF), sources close to the project tell MEED.

Tendered in April 2011, the size of the bidding list has gradually decreased as Eni has increased the scope. Three companies have now been shortlisted:

  • Unaoil (Monoco-based) and Rosseti Marino (Italy)
  • Weatherford (US)
  • Schlumberger (US)

However, the field’s joint management committee, which includes representatives of state-owned South Oil Company, Eni and the other shareholders in the field’s development could retender, according to one source since two of the bidders lack significant EPC experience.

“It is a pretty big change. West Qurna-2 is nine trains and that is huge at $1bn. The bidders can’t handle a job of this size,” says the source.

In late January, South Korea’s Samsung Engineering was approved for a $1bn deal to build nine EPF trains at the West Qurna Phase-2 field.

Contractors are also submitting technical clarifications for their proposals on 13 and 14 February for a brownfield deal covering the refurbishment of the Zubair field’s existing facilities. Technical bids were submitted in September by three Italian firms; Bonatti, Techint and Tecnimont; Punj Lloyd of India and Dubai-based Dodsal. No commercial deadline has been set, but bidding firms say they expect to hand in price proposals in March.

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