Lukoil set to award Iraq deals in November

30 October 2011

Three of four schemes under bid for West Qurna-2 oil field

Russia’s Lukoil is expected to award three deals by the end of November at the West Qurna Phase-2 oil field in the south of Iraq.

The deals were first launched in September 2010 as part of its development of the 12.9 billion-barrel field, covering a new 126-megawatt power plant, oil processing and storage facilities at the field.

A fourth deal, for an oil export pipeline estimated at approximately $250m is set to receive bids on 16 November after it was retendered in early October by the Russian oil firm despite receiving bids for the deal in June. The scope of the deal was also changed, increasing the length of the pipeline to 105 kilometres, from the original 85km.

West Qurna-2  targets
YearBarrels a day
Source: MEED

According to contractor sources in the country, Turkey’s Enka is the frontrunner for the power deal, while the central processing facility is likely to be won by Samsung Engineering of South Korea.

Technical and commercial proposals for the engineering, procurement and construction (EPC) contract were submitted at the end of March, with Samsung Engineering emerging as the lowest priced bidder. A contract had been expected to be awarded in August, but was delayed by concerns raised over the country of origin for the CPF’s procurement. This has now been resolved (MEED 9:9:11).

Four other firms bid for the deal: Globalstroy Engineering of Russia; Italy’s Saipem; SNC Lavalin of Canada; and a consortium of India’s Punj Lloyd and Japan’s Toyo Engineering.

The tank farm scheme is expected to go to France’s Entrepose Contracting. Lukoil also plans to tender a front-end engineering and design (feed) deal for storage facilities at Tuba near Iraq’s southern export terminals with State Company for Oil Projects (SCOP) being considered as a subcontractor for the design work.

Lukoil is developing the field along with Norway’s Statoil and expects to begin production in 2013 at 150,000 b/d, rising to 400,000 b/d by 2014.

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