Lukoil issues two major new tenders

27 February 2014

New central processing facility and water intake projects launched

Russia’s Lukoil has issued two major new engineering, procurement and construction (EPC) tenders as part of its development of the West Qurna-2 oil field in the south of Iraq.

The first tender covers the construction of a second phase of central processing facilities (CPF), with bids due on 15 May.

The second covers the construction of a third river water intake and water treatment plant. Bids are due on 16 April. No further details on the scopes of the projects have been announced.

Lukoil is ramping up its project activity in Iraq as it moves on its second phase of development. Bids for a third project for water injection and oil gathering systems are due on 5 June. Technical bids for the estimated $1bn-plus water injection and oil gathering systems deal are due to be submitted on 10 April.

Lukoil has divided the development of the West Qurna-2 field into three phases. The first aims to produce 150,000 barrels a day (b/d) from three crude trains. Phase 2 will increase production capacity to 400,000 b/d. The final phase will see production capacity raised to 550,000 b/d.

In January, Lukoil signed an amended agreement with the Iraqi Oil Ministry to reduce its plateau oil production target to 1.2 million b/d, from the original 1.8 million b/d signed in 2010. Production is expected to start in March or April at about 120,000 b/d, rising to 400,000 b/d by the end of the year.?

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