A joint venture of US engineering firm Foster Wheeler and Irelands Kentz Overseas has won a major engineering and procurement contract for the full-field development of the Majnoon oil field in the south of Iraq, according to sources close to the project.
The value of the contract has not been revealed, nor have the plans for the construction contract.
Oil major the UK/Dutch Shell Group, which leads the Majnoon consortium, previously awarded the pair the front-end engineering and design (feed) contract for the Majnoon developments new facilities in November last year.
Shell, along with Malaysias Petronas and state-owned Missan Oil Company were awarded a 20-year technical services agreement in January 2010 to lift production at the Majnoon to 1.8 million barrels a day (b/d) by 2017 from barely 50,000 b/d.
The Majnoon project consists of two phases. The first commercial production phase will increase capacity to 175,000 b/d using two early production facilities of 50,0000 b/d each. The UKs Petrofac was awarded a $240m engineering, procurement and construction (EPC) contract in 2011 for the project. Since December, the field has been producing more than 200,000 b/d.
The next phase is the full-field development, which will expand the drilling programme and add new oil and gas processing, water injection and transport infrastructure, taking production up to full capacity.
The Shell consortium is currently in discussions with the Iraq Oil Ministry over the final planned output of the field, possibly slashing the target to 1 million b/d.
The deal marks Iraqs transition from focusing on early production facilities. MEED reported on 9 March that Australias WorleyParsons was awarded a $30m contract for feed work on the full-field development of the Yamama reservoir of the West Qurna-2 oil field, operated by Russias Lukoil.
The development of the deeper Yamama reservoir of the field will require significant water injection and is expected to contribute the bulk of production from West Qurna-2 when it reaches full capacity.