US-based KBR has confirmed that it has been awarded an engineering, procurement, construction management (EPCM) contract to develop Iraq’s Majoon oil field.
The announcement from KBR comes as the Anglo-Dutch oil major Shell is due to exit the field along with its junior partner Petronas.
State-owned Basra Oil Company (BOC) will be handed responsibility for operating and developing the field from the end of June.
In a statement KBR said that it will provide: “overall project management, multi-discipline engineering support, procurement and construction management services to BOC under a two plus one year extendable service contract.”
BOC has also signed a two-year contract with Hong Kong-listed Anton Oilfield Services.
Anton Oilfield Services is expected to handle production operations and management.
BOC said in February it plans to raise output at Majnoon from 240,000 barrels a day (b/d) in three years to 450,000 b/d now by adding a new production platform.
Prior to Shell’s decision to exit the field it held a 45 per cent interest and operated under a technical service contract that expires in 2030.
Petronas, Malaysia’s national oil company, held a 30 per cent stake in the field, while the Iraqi government held the remaining 25 per cent.
Iraq is producing less than 5 million b/d as part of its commitment to the global output cut deal between the Organization of the Petroleum Exporting Countries (Opec) and a group of 11 other oil producers.
The Iraqi government announced plans in April to increase the country’s oil output capacity to 6.5 million b/d by 2022, which is lower than its initial target of 7 million b/d.
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