Russia’s Lukoil has opened commercial proposals for the construction of central processing facilities at the West Qurna phase-2 oil field in the south of Iraq.

Technical and commercial proposals for the engineering, procurement and construction (EPC) contract were submitted on 31 March.

Prices have not yet been revealed, but contractors estimate the scheme could be worth as much as $2bn.

Lukoil has shortlisted five firms for the deal;

  • Globalstroy Engineering (Russia)
  • Punj Lloyd (India)/Toyo Engineering (Japan)
  • Saipem (Italy)
  • Samsung Engineering (South Korea)
  • SNC Lavalin (Canada)

France’s Technip is conducting front-end engineering and construction (feed) work for the scheme.

Lukoil issued four tenders for EPC deals in September 2010 as part of its development of the 12.9 billion-barrel field. The tenders cover oil-gathering systems, processing facilities and a water supply system, along with an oil export pipeline, storage facilities, a power station and an associated gas processing plant.

Bids were submitted in April for the remaining deals, but firms were only shortlisted for the central processing facilities deal.

Turkey’s Enka is the frontrunner for the power deal, according to a source close to the project. The company was not available for a comment.

Lukoil expects to start production in 2013 at 150,000 b/d, rising to 400,000 b/d by 2014 (MEED 24:4:11).